Medical cannabis sales in Michigan are subject to the standard state sales tax of six percent, plus an additional three percent excise tax. As another example, River Rouge area dispensaries are likely to have their sales cannibalized once Lincoln Park and Ecorse dispensaries open up to recreational marijuana. Since this Gen X is the busiest generation of cannabis consumers, the most successful way to market your cannabis dispensary to this demographic is to add convenience to their purchase journey. How do I update my name on my registry card? Land contracts and mortgages back to the seller are shockingly commonin the Michigan cannabis industry. Can I sell edible products off a food truck? Ohio. A seed cleaner is involved in part of the process of converting raw hemp to a marketable form and would therefore need the processor-handler license. I am a Certified Public Accountant (CPA) conducting the Agreed-Upon Procedures report. Orders must be received through a secure website that authenticates access by a registered qualifying patient. Strict attention to compliance issues and regulations is required to apply for a permit to grow hemp in Michigan. Earnings Before Interest, Depreciation, Taxation and Amortization), but not profits. Cannabis Regulatory Agency Licensing & Statistical Reports, Statewide Marijuana Monitoring System Information - Metrc, Apply, amend, renew an adult-use establishment license, Apply, amend, renew a medical marihuana facility license, Apply, amend, renew a patient or caregiver medical marijuana card, Apply for or renew a Social Equity application, File a petition for the medical marijuana review panel, Approved grants and the grant approval process, Licensees that have had disciplinary actions taken against them, Tips for licensees, technical or advisory bulletins, The number of previously approved applications or licenses, https://dev.michigan.local/som/json?sc_device=json, Annual Financial Statement Questions for FY23, Annual Financial Statement Questions for FY20 and FY21. Check CRA's website periodically as PA 547 of 2014, as amended, may be updated, and there may be additional requirements such as labeling for hemp products. What are the capitalization requirements for an adult-use license? Am I responsible for any of the costs associated with ordering tags? Remember, your processor-handler license will not be issued until all required elements are submitted and processed. For an adult-use marijuana retail store you should apply for a retailer license that allows you to sell marijuana and other marijuana products, including plants and seedlings. Will I receive a registry identification card for each qualifying patient that designates me as his or her caregiver? Must my Annual Financial Statement (AFS) report include the financial dealings of the previous ownership that occurred during the reporting period? The total fees range from $4000 to $40,000 depending on the class you are applying for. My workforce is provided through a payroll/staffing company. Marijuana is legal in Alaska both for medical and recreational use. Once all information is received and confirmed to be correct, your license will be issued. I am unable to follow a procedure as specified. While Public Act 547 of 2014, as amended, requires licensing for only in-state processing, handling, and brokering sites, businesses performing marketing activities must be licensed whether in-state or out-of-state. Do I have to designate a primary caregiver? However, there is a method to the madness, as certain Michigan dispensaries knew how to best position themselves for eventual sale, or best structure the sale, while many others do not. There is another category, covered in section 15.4 of the Michigan Regulation and Taxation of Marihuana Act (MRTMA). Aside from the licensing application documents required in Section 7, there currently are no recordkeeping requirements for hemp processor-handlers. Using the Detroit 8 Mile dispensary listings as an example, once the cities of Ferndale, Hazel Park and Centerline came fully online, the appeal of 8 Mile dispensaries and other cannabis businesses for sale in Detroit dropped. Can I sell or transfer unused tags to another facility? The regulatory assessment for Fiscal Year 2020 (beginning October 1, 2019 and ending September 30, 2020) for a new provisioning center license is $44,000. I just mailed my Application Packet, but I forgot to include something important (application fee, proof of Michigan residency, physician certification). What is a CPA Attestation and what is required to be included? Yes; medical marijuana patients can cultivate up to 12 cannabis plants at home. Press question mark to learn the rest of the keyboard shortcuts. Usually, seller financing is a verified win-win for both buyers and seller. Hemp-derived topical lotions and tinctures with a THC concentration of 0.3% or less may lawfully be marketed and sold in Michigan with this license. We offer secure online consultations for long-distance patients and are . Our number is in the lower right corner works even on desktop. The state tax requirements for medical marijuana in Michigan is 6% sales and use tax. Patients wishing to grow medical marijuana in Missouri must first obtain an ID card from the Department of Health. What is the application fee to file an amendment? Can I have more than one marijuana microbusiness? It is always best if renewal paperwork is received by the department as one complete packet. If you grow hemp and want to sell harvested hemp to a licensed hemp or marijuana processor, you may do so under your grower registration. Also note, the business receiving the cleaned seeds is also involved in the processing aspect and would require a processor-handler license. All cannabis businesses help pay the $500,000 annual fee for substance abuse disorder programs ( MMFLA Section 333.27603) Licensing fees cost between $10,000 and $66,000. If you or your product manufacturers are selling or marketing industrial hemp, including already processed forms of hemp oils and powders, to Michigan dispensaries, a processor-handler license is required for all that are doing so. It costs $10.000 in-licenses fees, plus the application fees that are an additional $6.000. Michigans Marijuana Tracking Act requires the establishment of a statewide monitoring system that can integrate with third-party inventory control and tracking systems such as Covas Cannabis Dispensary POS Software in order to allow: Additionally, Michigan's Adult-Use Marijuana Emergency Rules state that licensees must use a third-party inventory control and tracking system that is capable of interfacing with the statewide monitoring system to track: Michigan has chosen Metrc as its official statewide marijuana monitoring system. Search no further, here you may find a list of cannabis growers and marijuana cultivators complete with their offering and locations they serve. You may also need to get approved and licensed by your municipality. How do I determine my Annual Financial Statement (AFS) reporting period? My business "cleans" hemp seed for a registered industrial hemp grower. Present your I.D. An overview of the medical and recreational marijuana laws in Michigan. If you wait too long, and those new dispensaries start cannibalizing your business, then you may end up getting a purchase price substantially less than what you would have gotten if youd listed your dispensary for sale before the cityaccepted those licenses or ordinances. Please note, depending on the industrial hemp product you intend to sell, there may be additional requirements for you to follow. In certain circumstances, they may even do it free of charge to you since we can sometimes negotiate arrangements where we pay them directly through MCP as they help drive a higher sales price, which in turn means my company gets a bigger commission. When do I renew my registry identification card? What documentation is required when applying for a medical marijuana state operating license? From medical dispensaries to the upcoming recreational stores, and even a 420-friendly doctor to help you serve your medical needs, you can find it all here. How should my payroll be reported on the P5 Schedule of Payroll Taxes? Can I transfer a marijuana license from one entity to another? Important Updates Cannabis Market Taxation and Regulatory Compliance Analysis Grant Program EGLE: Cannabis Environmental Regulatory Information Class A is a Grower license for 100 marijuana plants, Class B is a Grower license for 500 marijuana plants, and, Allows applicants to begin the application process while still seeking a location for the proposed marijuana facility, It starts by filing an Entity/Individual Pre-qualification Packet. In an industry that is constantly changing, adapting quickly to take advantage of new opportunities and facing potential challenges that come with the territory will determine if youll have a successful business or not. Bars and restaurants will now be able to sell drinks to-go, as well as deliver them, until December 31, 2025. If I report the financial dealings of the prior ownership of my licensed entity in my Annual Financial Statement (AFS) report, am I responsible for the state of the financial records or the financial dealings of the prior ownership? Who can prepare the Annual Financial Statement (AFS) report? Our LARA Veteran Liaisons may be able to help you navigate through the process and programs within our Department. Check back frequently as the landscape is evolving daily . To sell marijuana to any person. As a matter of fact, we find many public cannabis business do not actually make a profit,with a handful of exceptions. A microbusiness license allows the holder to grow up to 150 plants, process flower into marijuana products such as edibles and extracts, and sell direct to the consumer, all with one MRTMA license. What should I be paying for marijuana where I live? This means ensuring a super good user . They rake in $31,000-$42,000 depending on the dispensary. How Much Does It Cost to Open a Dispensary in Michigan To get a provisioning center or retailer license in Michigan the application fee is $6.000. Youll be required to provide the same information you submitted during the pre-qualification phase, with information regarding the municipality in which youll operate. I want to sell industrial hemp. How can I get information from the Agency? The list of conditions that qualify for medical marijuana in Michigan can be found here. Does the address on my application have to match the address on my Michigan driver license or personal identification card? When filing an amendment should the entity's operating agreement/bylaws be signed? However, equally important to note is that this percentage varies in . My Processor-Handler license expired November 30, 2021, and I have not been able to submit a renewal application yet. Where the applicant will identify the specific facility for which they are applying (grower, processor, provisioning center, safety compliance facility, or secure transporter) in the Facility License Application (FLA), and provide information and supporting documentation specific to the license sought. Each license is exclusive to the license type issued and to the licensee. We can help you receive top dollar for your Michigan dispensary property. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer. The Cannabis Industry - Dispensary Profit Margins Where can I find more information on each type of license? This is a less-intense version of the Budtender Certification with an overview of the endocannabinoid system and a summary of the basic cannabinoids and terpenes that the plant possesses. You should probably budget about $500,000 to be on the safe side. Those prices are then getting passed on to customers. Also, during the process, you will need to submit a site plan that covers everything from the building layout to security to trash management, and you may need to lobby for approval. Convenience and Clarity Matters to Gen X. Is there a separate fee for the caregiver? The term provisioning center includes any commercial property where marihuana is sold at retail to registered qualifying patients or registered primary caregivers. You want to make sure to have the assistance of an experienced licencing lawyer that helps you prevent unnecessary risks. Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests. I am unable to follow a procedure as specified. Friend has his own grow op and wants me to be an outside sales rep trying to get product into dispensaries (when covid blows over obviously). But that is coming to an end real fast. If required elements do come in separately, they will still be processed, but in the order received. Not a bad deal if you ask me. Go to one of Michigan's many recreational weed dispensaries, located throughout the state. Do I need a processor-handler license? The first is an application fee of $6,000, which must be submitted before the application can be processed. Who is a "managerial employee" of the applicant? 2. Can a federally recognized Indian tribe apply for a state license? The state of Missouri allows qualifying medical marijuana patients the right to grow up to six flowering plants, six non-flowering plants, and six clones under 14 inches in height. Am I able to use another hemp processor's product (for example, CBD isolate) to create my own hemp product to sell? Does product have to go from a grower to a processor or can a grower sell product directly to a provisioning center? The Board had previously set, when the law first passed in 2019, as requirements for dispensary owners the following criteria: However, they are currently amending the requirements set on their webpage, which could potentially mean that they are making some changes to the applicability of those wanting to get a Cannabis license in Michigan. In 2018 and early 2019, dispensaries would essentially sell themselves. Who is required to submit an application? The buyer, on the other hand, saved half a million in upfront costs, which they could use to fully stock the inventory and for working capital. Groups will make offers based off the potential of the listings' location, as there is no revenue or EBIDTA data that can be used when there is no revenue. To renew your expired processor-handler license, you are required to submit your completed renewal application, along with the license renewal fee, and all required documentation. The same can be said for many areas throughout Michigan. Opening a cannabis dispensary in Michigan requires more than application forms. All rights reserved. Why is testing of marijuana products required? Do I have to provide proof of my Michigan residency when I renew my registry identification card? Once approved for a license, the initial licensure fee for an adult-use marijuana retailer is $25,000. From organic to exotic and everything in between, dispensaries.com has one of the most extensive list of pot cultivators on the market. How do I register a minor (under the age of 18) with the Michigan Medical Marijuana Program (MMMP)? Michigan's Industrial Hemp Research and Development Act, PA 547 of 2014, as amended, requires any person who is marketing industrial hemp in Michigan to be licensed as a processor-handler. How much is the fee? I know you need a license to grow, however, since I will be the one selling would I need a license myself? For example, it can range from $128/sq ft to $393/sq ft. On the other hand, if you are limited to leasing the property, monthly costs for a marijuana store might run between $3,500 and $10,000 or even higher. I am a licensed hemp processor and assume I need to record weight of incoming hemp shipments and the weight of products that we produce from hemp. Do such products need to be registered? I plan on seeking multiple licenses from the Agency, do I have to pay the $6,000 application fee for each license? Is this license required for retailers who do not have a physical location in Michigan? If youre already operating a license just call us. The state had allowed caregivers to sell their excess cannabis to the retail market. or just the business that my buddy owns will need a growers license? Unless you got $100,000 plus to get state-licensed, get City approval buy a property and set up a grow. Do I still need to report this on P8 Schedule of Management, Services, and Other Agreements? In the drop down menu for "License Type," select "Provisioning Center - License." 3. Can a person seeking certification for medical marijuana do so in a provisioning center? Doing so will result in the most efficient and timely processing of your paperwork. If you were to look just at data for comparable sales of dispensaries, it may be hard to make heads or tails out of the sales prices. A business plan for a marijuana dispensary requires knowledge about the right location and proper requirements at the place of operation. Besides the cost of opening a dispensary, other expenses exist - and these will impact your profit margin. The thing is, when a dispensary is pre-operational, valuation becomes much more subjective. The lives that is just a piece of the puzzle. If the dispensary is otherwise quiet . Today, there. A designated caregiver must purchase medical marijuana for patients under the age of 18. All of our seeds are lab tested for genetic quality, hand picked just for you, and shipped directly to your door in . PUBLISHED DECEMBER 18, 2020 - UPDATED JANUARY 29, 2021. Email: MDARD-IndustrialHemp@Michigan.gov A brand or business needs to establish itself and pass specific regulations for their product to get into an actual store. What impact does the MMFLA have on patients or caregivers operating under the MMMA? a question thats on every cannabis entrepreneurs mind. We do not have a written agreement or contract. This license is for individuals who are qualified to acquire, possess, distribute and dispense marijuana. July 2, 2020 Jordyn Pair. Many of these same dispensaries are now receiving offers at a fraction of what they were receiving in 2018. Michigan Cannabis Properties specializes in offering listing services for Marijuana real estate owners as well as directory services for cannabis testing professionals, distributors, retailers, manufacturers, and cultivators. Dont be one of them. As an example, we were working on a deal where the cash out price was $850,000, and the seller financed price was $1M, with about 30% down, a three year carry at 7% interest rate, and final balloon payment at the end of the three-year term. Of course, itll depend on what type of cannabis license you want to get for your operation. How is your plant count determined as it affects your growing limited as a Class A, B, or C Grower Licenses? I am a registered caregiver. My business is developing an in-field THC testing kit, and we will collect hemp samples to test the efficacy of the kit. Of course, not everything is as clear cut as the above example given the wide variance of municipal restrictions on the cannabis real estate industry. Medical marijuana can be delivered to the home of any registered qualifying patient, even if the patient's jurisdiction does not allow dispensaries. This page is informational only and should not be considered legal advice. Additionally, under the Michigan Regulation and Taxation of Marijuana Act, adults aged 21 and older may cultivate up to 12 cannabis plants at home. One thing that the pandemic did was give us all a lot of time in the kitchen. Dispensaries: Compassionate care centers will be licensed by the state. Another way to do this is by marketing, though Im sure this isnt new news to most dispensary owners. When you work out the numbers, the seller would have received closer to $1.15M, or an extra $300,000, with seller financing. As with most things in life, timing is key; this is the same for the cannabis real estate industry, yet it is one of the most overlooked factors in determining the price you will get for your dispensary. The actual license fees vary depending on the type of license. Michigan restaurants and bars will now be allowed to sell to-go alcoholic beverages, thanks to a new package of bills signed by Gov. Basic Dispensary training is 2.5-hour class covering what you need to know to work the retail side of the industry: CBD Stores or Cannabis Dispensaries. The Department of Licensing and Regulatory Affairs has great diversity of licenses and regulation within its oversight. Adults aged 21 and older may purchase no more than 2.5 ounces of cannabis or equivalent product in a single transaction, with no more than 15 grams in the form of cannabis concentrate. Below, weve provided answers to as many questions as possible concerning cannabis retail licensing and dispensary laws in Michigan, and we will continue to update this page regularly as new details emerge. The Michigan Marijuana Regulatory Agency, or MRA, is tasked with overseeing cannabis business licensing. The sale of less than 5 kilograms is punishable by up to 4 years in prison and a maximum fine of $20,000. Among states with legalized medical cannabis, Oklahoma had the largest number of dispensary licenses as of summer of 2021. Michigan's Industrial Hemp Research and Development Act, PA 547 of 2014, as amended, requires any person who is marketing industrial hemp in Michigan to be licensed as a processor-handler. You will not need the license for sampling and testing alone. The second fee is an annual regulatory assessment, which must be paid prior to the license being issued. Stay productive once you start your business. Here, a quick word to the wise: you need to be VERY careful with text message marketing of both medical and recreational marijuana. As of right now medical marijuana growers can still sell to dispensaries. My business is developing an in-field THC testing kit, and we will collect hemp samples to test the efficacy of the kit. Transfers of product between my licenses are not recorded as revenue in my general ledger. Marijuana retailers in Michigan may sell cannabis and cannabis products including flower, concentrates, edibles, infused products, seeds, and clones. However, if your business is involved in any of the following activities defined in PA 547 of 2014, as amended, a license would be required: Processing - Converting raw industrial hemp into a marketable form. And since the frameworks for cannabis businesses in Michigan are still being outlined, possible changes in the rules for applications could happen too. Although Michigan has legalized medical marijuana, recreational legalization hasn't quite happened. Can delivery occur in municipalities that have opted out? Point-of-sale software such as IndicaOnline has maximum-security data . Initially, it was announced that for the first 24 months, applications would only be accepted from currently licensed medical marijuana operators. This subreddit is for news, discussion and collaboration between current and future employees and entrepreneurs in the legal marijuana and hemp industries. Am I required to submit an Annual Financial Statement (AFS) report if my license has been closed or not renewed? Medical Marijuana Dispensary License. RELATED POST: Michigan Business Cannabis Lawyer. Applying for a New York Cannabis License The Office of Cannabis Management Cannabis Control Board (CCB) of New York has applications for cannabis adult use, Are you an ambitious entrepreneur looking to get involved in the cannabis industry? Additional fees may be imposed at the municipal level; check with your local municipality to find out more. Many groups new to the cannabis real estate industry in Michigan are surprised to learn that the data reflects more seller financed deals than traditional purchases. Recreational marijuana sales totaled more than $341 million in the fiscal year 2020, which ran from Oct. 1, 2019, to Sept. 30, 2020. The wholesale price for marijuana in Michigan is running $4,000 to $4,500 a pound, one of the highest prices in the nation. How will the Agency accept fees and taxes?