State Recreational Marijuana Laws, License Fees And Taxes
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.
- District of Columbia
- 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
|State||Year||Percentage of Vote passed||Possession limits|
|Alaska||2014||Ballot Measure2 (53%)||1 oz usable: 6 plants (3 mature)|
|California||2016||Proposition 64(57%)||1 ox usable: 6 plants; 8g hash/concentrates|
|Colorado||2012||Amendment 64(55%)||1 oz usable; 6 plants (3 mature); 1oz hash/concentrates|
|District of Columbia||2014||Initiative 71(65%)||2 oz usable; 6 plants (3 mature)|
|Illinois||2019||House Bill 1438||1 oz usable; 5 g hash/concentrates|
|Maine||2016||Question 1(50%)||2.5 oz usable; 15 plants (3 mature); 5 g hash/concentrates|
|Massachusetts||2016||Question 4(54%)||1 oz usable; 6 plants; 5 g hash/concentrates|
|Michigan||2018||Proposal 1(56%)||2.5 oz usable; 12 plants; 15g hash/concentrates|
|Nevada||2016||Question 2(54%)||1 oz usable; 6 plants (2 mature); 3.5 g hash/concentrates|
|Oregon||2014||Measure 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|
|Vermont||2018||Legislative Bill H 511||1 oz usable; 6 plants (2 mature); 5 g hash|
|Washington D.C.||2012||Initiative 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
|State||License Fees||State taxes on recreational marijuana|
|$50 per oz cultivation tax|
|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|
|Maine||10% 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|
|Michigan||6% state sales tax and 10% excise tax|
$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|
$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.