Marijuana Business Factbook 2019

Marijuana Business Factbook 2019 Chapter 2 | State-By-State: Legal Overview, Market Data and Outlook 84 © 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 regulations Heavy. The state strictly limits the number of permitted dispensaries to one in each of eight predefined geographic areas. Dispensaries must also obtain several other types of permits and licenses and cultivate their own cannabis. The state has implemented production caps as well. Regulations cover all conceivable aspects of operations, and dispensaries are subject to inspections by the state. Of note is Maine’s large number of caregivers, some of whom have taken advantage of the lack of oversight built into Maine’s regulations to sell infused cannabis products and grow a great number of plants for patients, thus skirting the limitations faced by licensed dispensaries. Regulations that went into effect in December 2018 allow caregivers to sell excess product to dispensaries and vice versa and allows caregivers to open and staff shops. The new rules also lowered application, renewal and change-of-location fees for dispensaries, replaced the list of qualifying conditions by allowing medical providers to recommend medical marijuana based on their professional opinion of medical benefit to a patient, and increased the number of allowed dispensaries from eight to 14. However, the number of dispensaries will remain at eight until the state issues new program rules. BUSINESS TAXES & FEES Application Fees Dispensary: $12,000 Caregiver: $240 per patient to max of $1,200 for 5 patients Renewal Fees Dispensary: $12,000 Caregiver: $240 per patient to max of $1,200 for 5 patients Change of location Dispensary: $4,000 State tax requirements 5.5% state sales tax on all marijuana transactions at dispensaries State tax collections in 2018 $1,408,808 MAINE Medical continued