Marijuana Business Factbook 2019

Marijuana Business Factbook 2019 Chapter 2 | State-By-State: Legal Overview, Market Data and Outlook 38 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. BUSINESS TAXES & FEES Application Fees Dispensaries: $7,500 Cultivators: $15,000 License Fees Dispensaries: $15,000 (new); $22,500 (annual renewal) Cultivators: $100,000 (new); $100,000 (annual renewal) Working capital/escrow/ bond requirements Dispensaries: Proof of assets or a surety bond in the amount of $200,000 and proof of at least $100,000 in liquid assets Cultivators: $1 million bond or assets worth $1 million and the ability to demonstrate $500,000 in cash liquidity State tax requirements 4% privilege tax on all medical marijuana sold, in addition to state sales tax of 6.5% and local sales taxes State tax collections in 2018 None. Sales began May 2019. SUPPLY CHAIN DYNAMICS Retail store structure For-profit allowed Number of businesses allowed Dispensaries: 32 Cultivators: 5 Number of businesses operating in early 2020 As of press time, all five cultivators had been licensed, with three actively operating. All 32 dispensary licenses have been awarded, with 16 dispensaries in operation and several more slated to open in the coming months. MARKET OVERVIEW Number of registered patients 35,670 (up from 10,877 in early 2019) Estimated 2019 MMJ sales via dispensaries $30 million ARKANSAS Medical continued