Recreational Marijuana States

State Recreational Marijuana Laws, License Fees And Taxes

November 8, 2019 0 Comment

State Recreational marijuana laws, license fees and taxes. While medical marijuana has gained acceptance and legal status in around 33 states, recreational marijuana is still a “legal” product in around 11 states and Washington D.C. 

Despite the legal status, only eight states have the permission to indulge in legal sales of recreational marijuana. The legal markets in these states allow customers to purchase recreational cannabis from state-licensed marijuana dispensaries or retailers.

Legal Recreational Marijuana States

The list of states where recreational cannabis is legal.

  1. Alaska
  2. California
  3. Colorado
  4. District of Columbia
  5. Illinois
  6. Maine
  7. Massachusetts
  8. Michigan
  9. Nevada
  10. Oregon
  11. Vermont
  12. Washington D.C.

State Recreational Marijuana Laws

To understand more about the list of states, who have given the “legal status” and their permissible limits, its important you refer the table cited below.

List of States where Recreational Marijuana is Legal and their Possession Limits

StateYearPercentage of Vote passedPossession limits
Alaska2014Ballot Measure2 (53%)1 oz usable: 6 plants (3 mature)
California2016Proposition 64(57%)1 ox usable: 6 plants; 8g hash/concentrates
Colorado2012Amendment 64(55%)1 oz usable; 6 plants (3 mature); 1oz hash/concentrates
District of Columbia2014Initiative 71(65%)2 oz usable; 6 plants (3 mature)
Illinois2019House Bill 14381 oz usable; 5 g hash/concentrates
Maine2016Question 1(50%)2.5 oz usable; 15 plants (3 mature); 5 g hash/concentrates
Massachusetts2016Question 4(54%)1 oz usable; 6 plants; 5 g hash/concentrates 
Michigan2018Proposal 1(56%)2.5 oz usable; 12 plants; 15g hash/concentrates
Nevada2016Question 2(54%)1 oz usable; 6 plants (2 mature); 3.5 g hash/concentrates
Oregon2014Measure 91(56%)1 oz usable in public; 8 oz homegrown usable at home; 4 plants; 16 oz solid marijuana infused, 72 oz liquid infused and 1 oz extract of hash/concentrates at home 
Vermont2018Legislative Bill H 5111 oz usable; 6 plants (2 mature); 5 g hash
Washington D.C.2012Initiative 502 (56%)1 oz usable; 16 oz solid marijuana infused, 72 oz liquid infused and 7g hash/concentrates

License Fees & State Taxes on Recreational Marijuana

Getting license fees out of every recreational cannabis set-up, in addition to taxes, are ways in which states can monitor and implement a legal recreational market as well. In states, which have legalized the status, any kind of marijuana business involving cultivation, distribution or selling recreational marijuana will require a state-issued license.

Despite strict licensing norms, the recreational cannabis market has seen a surge in licensing demands. As per reports, the Department of cannabis Regulations, L.A. claimed to increase their staff in order to keep up with the increase in licensing demands.

All states like medical marijuana, seek application fee along with annual license fee. The following table will give an exact picture of license fees and taxes.

State-by-State Recreational Marijuana Taxes

StateLicense FeesState taxes on recreational marijuana
Alaska$1000-application fee
$600-renewal fee
$1000-$5000-annual fees
$50 per oz cultivation tax
California$135-$8655-application fees
$500-$200,000-yearly fee
7.5% state sales tax, 15% excise tax, $9.25/oz flowers & $2.75/oz leaves cultivation tax
Colorado$500-$5000-new business application fees
$725-$4925-license application fees
$1500-$4400-license renewal fees ($300 for renewal applications)
15% state sales tax and 15% excise tax
Maine10% state sales tax
Massachusetts$100-$600-application fees (application fee is waived off for social equity program participants)
$625-$25,000-annual license fees
10.75% state sales tax
Michigan6% state sales tax and 10% excise tax
Nevada$5000-application fees
$10,000-$30,000-license fees
$3300-$10,000-annual renewal fees
10% state sales tax and 15% excise tax
Oregon$250-application & renewal fees
$1000-$5750-annual license fees
$100-Cost of medical canopy at the same location as the producer’s license
17% state sales tax
Washington$250-application fees
$1480-annual license costs
$250-speciality endorsements cost for transportation and research licenses
$895-marijuana infused edible processor
6.5% state sales tax & 37% excise tax

Vermont did legalize recreational marijuana, but it did not create a legal market.  D.C also doesn’t allow for sales in a legal market, despite allowing possession and growing of marijuana. 

Just like alcohol and tobacco, most states impose taxes on retail marijuana, as cited above. The cost of these taxes is passed on to the customer in the final retail price, therefore making legal recreational marijuana market a more expensive area than compared to marijuana, which is purchased illegally in the black market.

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