Alaska regulators weigh increase in license fees for cannabis businesses

Alaska regulators are mulling a hike in marijuana business license fees to bankroll the work needed to regulate the state’s cannabis industry.

The Alaska Journal of Commerce reported the state’s Marijuana Control Board is weighing two proposals:

  • An increase in the $500 license to $1,500, and the $5,000 license to $7,000.
  • An increase in the $500 license to $1,000, and the $5,000 license to $6,000.

Here’s what you need to know:

  • Alcohol and Marijuana Control Office Director Erika McConnell presented the plan at the board’s Oct. 17 meeting.
  • She also suggested the board could boost only the renewal fee for licensees, because it’s already costly for new businesses seeking to enter the MJ space.
  • The state Legislature pumped in about $4.5 million from general coffers when the program started – and the state wants to be paid back, McConnell said.
  • MJ business owners have voiced concerns about the time it takes the state to review new license applications – with some applicants waiting up to five months.
  • McConnell called for more staff to improve the turnaround time on applications.
  • A public notice and comment period would be needed before the board could act on the proposed fee hike.

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2 comments on “Alaska regulators weigh increase in license fees for cannabis businesses
  1. Labyor on

    I own a cultivation business and I think an open market is the right way to go but there are so many people getting into the business that have no business doing so. I think this might be a good way to curb new people getting into it that should not be. If you are a true professional that has the right resources a one thousand dollar increases should not deter you. When starting any business do a market analyst before you invest. The taxes are no joke and make what seems profitable not the case. look into tax code 280E before you start. The market will balance out but not before a lot of people lose a lot of money. There are no free rides in life if you are not willing to work and put in your all dont do it. This is the way a free market works, the people that do the best will make it and every one else will fail. there has been a lot of talk about limiting the number of licenses but that is not the way to do it. My biggest gripe is people who are over confident and get other people to invest only to lose their investors money. If you are willing to put your own neck on the line then go for it but dont take a risk with other people’s money. I see this over and over. In the end the consumer wins in a free market.

  2. Bernard Miller on

    The reason they are in a bind is their fault for over shooting the need for constant and in cases overdoing oversight. Too much is charged now, if you want the industry to take off you have to give them assistance. When all you look for is the bad and that being your mindset there will be conflict and this us expensive for all parties. We need to go to a sales tax for revenue alone. We should only need one license to include all phases of getting it to market. More will be done if we can grow, process, manufacture and sale this plant. Farmers have made many contributions and innovations in their industry, the cannabis industry is no different. The latest proposal for testing is erroneous, it exceeds all federal testing requirements. The state can fill their coffers by becoming a partner. You bleed the goose you lose the golden eggs.

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