On January 19, 2019, U.S. Virgin Islands Gov. Albert Bryan Jr. signed into law the Medical Cannabis Patient Care Act, setting up a medical cannabis program for both Virgin Islands residents and medical tourists.

On January 18, 2023, the U.S. Virgin Islands legalized adult-use cannabis and on April 17, 2024, the Virgin Islands Cannabis Advisory Board (VICAB) approved regulations for the Virgin Islands Cannabis Program which combines the medicinal and adult-use cannabis programs.

The U.S. Virgin Islands Cannabis Market

Cannabis Business Licenses Types Available in the U.S. Virgin Islands

A Cannabis Cultivator license allows to cultivate, cure, process, internally test, store, package and label cannabis as well as store, sell, purchase and transport the cannabis produced by the licensee to and from other licensed cannabis businesses and testing facilities on the same island.

  • Tier 1
    • 51-350 flowering plants
    • 201-1000 immature plants
    • Application fee: $2,500
    • Renewal fee: $2,500
  • Tier 2
    • 351-650 flower plants
    • 1001-2000 immature plants
    • Application fee: $5,000
    • Renewal fee: $5,000
  • Tier 3
    • 651-1000 flowering plants
    • 2001-4000 immature plants
    • Application fee: $7,500

Renewal fee: $7,500

A Cannabis Micro-Cultivation Permit allows to cultivate, cure, process, sell and transport cannabis. A Micro-Cultivation Permittee may cultivate no more than 50 Flowering Cannabis Plants and no more than 200 Immature Cannabis Plants at a single time.

A Micro-Cultivation permit will only be issued to individuals who hold a valid farmer’s license or are in the process of applying for a farmer’s license. A Micro-Cultivation permit holder can only sell cannabis that was harvested from cannabis plants cultivated on their site.

Application fee: $1,000

A Cannabis Manufacturer license allows to manufacture, process, internally test, package and label cannabis products as well as store, sell, purchase and transport cannabis and cannabis products to and from other licensed cannabis businesses on the same island.

Application fee: $5,000

Renewal fee: $5,000

A Cannabis Research and Development license allows to purchase cannabis or cannabis products from licensed cannabis businesses, and perform research and tests on the acquired cannabis and cannabis products. The license also allows to cultivate immature cannabis plants and flowering cannabis plants within production limits outlined in the regulations as well as sell seeds and immature cannabis plants under 12 inches in height.

Application fee: $1,500

Renewal fee: $1,500

A Cannabis Retailer license allows to store, sell, purchase and transport cannabis and cannabis products.

Application fee: $10,000

Renewal fee: $25,000

A Testing Laboratory license allows to acquire, possess, analyze, test and transport cannabis.

Application fee: $2,500

Cannabis Consumption Lounge permits allow to undertake and authorize the consumption of cannabis products by individuals aged 21 and over in an on-site Designated Consumption Area licensed and authorized by the OCR.

The differences between these permits are the following:

  • A Cannabis temporary use permit is only valid for a specified time-period.
  • An On-site consumption permit is only issued to Cannabis Cultivation Licensees to authorize consumption of cannabis on their licensed premises.

Application fees:

  • Adult-use lounge permit: $1,500
  • On-site cannabis use permit: $1,500
  • Cannabis temporary use permit: $1,000

A holder of a Cannabis Dispensary License may also receive a Cannabis Cultivation License, but not other license types.

A Cannabis Manufacturing Licensee and a Cannabis Dispensary Licensee must purchase or acquire 15%, as measured by weight, of the Cannabis that it stocks in its inventory from Micro-Cultivation Permittees.

Weed Delivery Service in Virgin Island

The OCR may authorize Third-Party Vendors to transport and Deliver Cannabis Items and authorize Licensees to transport Cannabis Items cultivated, manufactured, processed, stored, and packaged in association with their business operations and at their Licensed Premises pursuant to the requirements of this section.

Cannabis Items may only be transported by Transporters between Licensed Premises, between a Licensed Premises and a Testing Facility, and between a Dispensary Licensee and a Qualified Patient or a Qualified Patient’s Designated Caregiver.

Cannabis Courier Service by State

Virgin Island Cannabis Licensing Process

Licensing steps:

  1. Submit a complete application to the OCR along with the relevant application fee.
  2. The OCR will review all applications submitted and publish a list of approved applicants within 90 days after the application deadline.
  3. Conditional licenses will be awarded to applicants with the highest number of points.
  4. The OCR will then inspect and approve the approved applicants’ premises and check whether the premises and operational plans comply with the regulations.
  5. Once the inspection has been conducted and the Certificate to Operate fee of $15,000 has been paid, the applicant will be issued a license and they can begin to operate.

Application requirements:

  • The application for a license must be made on forms provided by the OCR.
  • There should be majority ownership of the applicant business entity by residents of the Virgin Islands – at least 50.1%. This, however, does not apply to the Micro-Cultivation permit.
  • The applicant business entity must only employ individuals aged 21 and over.

General information required to be submitted with the application:

  • A business plan and financial plan.
  • Evidence of the suitability of proposed premises for the cannabis business such as appropriate size and sufficient security.
  • Proposed operating procedures.
  • Floor plan of the proposed site for the cannabis establishment.
  • Employee training plan.
  • Security plan to prevent diversion or theft of cannabis and a recordkeeping plan.
  • Safety and labeling plan.

For each license type, there is additional information that has to be submitted. For more details on the information to be submitted when applying for each license type, please refer to the regulations.

Permits:

  • To obtain a permit, the applicant should submit an application on a form provided by the OCR and provide consent for a site visit and a background check. They should also pay the relevant permit application fee. The applicant must provide an operational plan when applying for any of the permits mentioned above.

Licensees must begin operating within 6 months of their application being approved. Licenses and permits are valid for one year so must be renewed every year.

Renewal of licenses and permits:

  1. Submit an application for renewal on a form provided by the OCR at least 30 days before the expiration date of the license or permit along with the relevant renewal application fee.
  2. The OCR will decide whether to approve the renewal of the license or permit within 30 days of submission of the completed application for renewal.
Sacramental Organization Registration

In the Virgin Islands, sacramental usage of cannabis is also legal; this means that cannabis can be produced, transported and provided for use by people over the age of 21 “who are members of an organized religion or faith that is incorporated under title 13 of the Virgin Islands Code who use cannabis in the sincere exercise of their religion or faith”, according to the OCR.

Sacramental Organization Identification Card fee: $200

Sacramental Organization renewal fee: $200

The following documentation should be submitted with the application:

  • Record of any fees charged to members.
  • A current membership list of names and addresses (there should be at least 10 members in the Organization).
  • A description of the Organization’s sacramental use of cannabis.
  • Deed or lease agreement that clearly states the Organization’s authority to grow cannabis.

A Sacramental Organization can also apply for a Collective Sacramental Cultivation Certificate which would allow it to perform non-commercial cultivation of cannabis on the grounds of the Organization.

The Organization can grow up to 12 immature cannabis plants and 6 flowering cannabis plants per each registered member of the Organization (according to the number of members that existed at the time of application for the certificate). The Organization can later apply to the OCR to increase or decrease its plant limits due to changes in membership size.

Collective Sacramental Cultivation Certificate: $500

Virgin Islands Cannabis Taxes

There is an 18% excise tax charged on adult-use cannabis sales. If cannabis products are purchased by a non-resident of the U.S. Virgin Islands, the non-resident consumer will have to pay a Cannabis Fee of $20 during the purchase.

Cannabis Advertising Regulations in Virgin Islands

Cannabis businesses in the Virgin Islands can display their name and logo on labels, signs, websites and informational material. However, there are restrictions on what the name and logo can include, outlined in the regulations.

All cannabis business entities, except a cultivation facility, can display public signs at their licensed premises. A cannabis dispensary can have no more than three signs visible to the general public. Also, cannabis products cannot be displayed in a way that makes them visible to the public from a public right-of way.

A cannabis dispensary cannot use giveaway coupons for promotion and cannot conduct promotional activities such as games and competitions to encourage the sale of cannabis and cannabis products.

All advertising of cannabis and cannabis products must include the following warning: “For use only by adults 21 and older. Keep out of reach of children”.


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The U.S. Virgin Islands Cannabis Market

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