You are able to start dispensing businesses in Maine to cultivate, transport and distribute medical cannabis for 5 patients and will be able to start recreational cannabis business from 2018.
Maine voters legalized use of medical marijuana in 1999 and have significantly expanded the program since, most recently by creating a regulated system of medical marijuana dispensaries and caregivers permitted to grow pot for clients.
8 November 2016 Maine voters have approved cannabis for recreational use. The vote means that cannabis will become legal for use from December 15, and cannabis shops can open in 2018.
Licenses, fees and taxes for Maine’s cannabis market
Since medical cannabis sales were approved in Maine, the state’s dispensaries have been extremely limited. Only eight medical dispensaries were permitted one in each of the state’s predefined geographic areas. The dispensaries were required to obtain permits and licenses and cultivate their own cannabis, with production caps set by the state. Every aspect of the dispensaries’ operations is regulated, and the facilities are subject to state inspections. Much of Maine’s medical cannabis sales have been carried out by a large number of caregivers, many of whom profit by growing cannabis for patients.
The State of Maine has enacted legislation allowing to legally grow marijuana for a Maine qualified patients (up to 5) in need. As a Maine licensed caregiver you are allowed by law to grow up to 6 marijuana plants per patient. You are also allowed to possess and transport up to 2.5 ounces of medical marijuana at reasonable market prices to the patient you care for every 15 days. Caregivers operating a legally compliant business can expect to earn approximately $20,000-$40,000 or more per year in revenue.
Start-up costs include:
- The Caregiver license is $300 per patient ($1,500 cost annually)
- Background check fee paid to the state $31
- Space improvement (from $1,000)
- Tables, shelves, supplies and other equipment ($1,000+)
- Monthly Operational Utilities ($200+)
The laws regulating recreational cannabis in Maine are still in draft form. Under those draft regulations, here are the types of licenses that would be allowed in the medical cannabis industry:
- Cultivation facility licenses
Cultivation facility licenses will be broken into three tiers, based on the size of the facilities. To obtain a license, cultivators must submit applications along with operating and cultivation plans.
Facilities with Tier 1 licenses will be allowed to cultivate no more than 30 mature marijuana plants and an unlimited number of immature plants and seedlings, or less than 500 square feet of plant canopy; Tier 2 cultivation facility licenses allow the growth of up to 3,000 square feet of plant canopy; Tier 3 cultivation facility licenses allow the growth of up to 10,000 square feet of plant canopy; and Tier 4 cultivation facility license, allowing the growth of up to 30,000 square feet of plant canopy.
Not more than once every 2 years, an applicant seeking renewal of a Tier 4 cultivation facility license may apply to increase the allowed maximum amount of plant canopy by 10,000 square feet.
- Testing facility licenses
- Products manufacturing facility licenses
- Marijuana store licenses
- Marijuana social club license, beginning June 1, 2019.
|Application||$15,000||Retail store: $250
Testing lab: $250
Marijuana social club: $250
Change of location – $4,000
|Retail store: $2,500
Testing lab: $1,000
Marijuana social club: $2,500
|Taxes||5.5% state sales tax on all marijuana transactions at dispensaries and 8% for edibles||10% excise tax on retail sales|
To get ahead and be prepared for when the state will start licensing marijuana businesses, you should a plan today.
We create medical and recreational cannabis business plans for different types of cannabis business:
Please do not hesitate to contact us to make an order for a cannabis business plan or a cannabis industry research. We will create complete and professional business plans, including pro forma financials and projections to help you know how much money it’ll cost to start your business and how much money you can make by starting and operating your 100% legally compliant medical and recreational marijuana business.
We also offer a wide range of cannabis business plan templates and financial models.