Op-Ed: Minnesota Should Let Cannabis Businesses Offer Employee Stock Plans

Minnesota lawmakers are pushing a bipartisan plan to let cannabis companies adopt Employee Stock Ownership Plans (ESOPs), and it’s a potential game-changer for the North Star State. Currently, federal tax code 280E hammers local shops with insane tax rates—sometimes over 70%—because they can't deduct basic overhead like payroll. By becoming 100% employee-owned, these businesses could essentially bypass federal and state income taxes, providing a vital lifeline for startups struggling in a rocky market.

This isn't just about corporate math; it’s a win for the community. This structure helps build real wealth for workers, including those from BIPOC communities hit hardest by the war on drugs. For the everyday toker, this matters because stable, employee-owned businesses often lead to better product consistency, fairer pricing, and a more passionate workforce. When the budtenders and growers actually own the shop, the vibes and the quality tend to stay high. Supporting this legislative move means supporting a more equitable and sustainable local weed scene.