4 Things to Know About Adult-Use Cannabis in Massachusetts

Adult-Use Cannabis Sales Approval

The Massachusetts Cannabis Control Commission (“CCC”) has provided final approval of adult-use marijuana licenses to Cultivate Holdings, LLC for cultivation, product manufacturing, and retail, and to New England Treatment Access, LLC for retail. This approval marks the beginning of adult use cannabis in the Commonwealth, with sales beginning on Tuesday, November 21, 2018.

With sales beginning in Massachusetts, here are four things to know about adult-use cannabis in the Commonwealth:

1. Medical Marijuana Patient Priority:

Dispensaries that are collocated, meaning they possess both a medical and an adult-use license, must set aside at least 35% of their inventory for medical marijuana patients if they have been open for less than 6 months. If the store has been open for longer than six months, it must have an amount that is “sufficient to meet demand indicated by an analysis of sales data collected by a licensee”. Collocated dispensaries will have a separate line for medical patients and will prioritize their service over adult-use sales.

2. State and Local Taxes:

Adult-use sales will be subject to up to 20% tax (17% state and up to 3% local taxes), while medical sales have no taxes levied. Plenty of incentive to still get a medical card!

3. Home Cannabis Cultivation:

Anyone 21 and older can grow up to 6 plants in his/her home. Plants must be in an area with a lock or security device, and out of view from a public place without the use of binoculars, aircraft, or other optical aid. Indoor and outdoor cultivation are allowed, so long as these requirements are met. This has been allowed since the Act was first passed in 2016.

4. Legal Use and Distribution:

Delivery and on-site consumption are still prohibited.

Adult-use sales are highly anticipated in Massachusetts, and licensed cannabis businesses are likely to face long lines and product shortages as a result.

Contact our cannabis consulting experts today if you need help starting or expanding a cannabis business in Massachusetts!

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