Marijuana in Michigan is currently legal for recreational use. In 2018, the Michigan Regulation and Taxation of Marihuana Act passed with a 56% vote. With that, sales of recreational marijuana began in December 2019. Before the legalization of recreational marijuana, medical marijuana was legalized in 2008 through the Michigan Compassionate Care Initiative. Now, is the time for you to find a Michigan marijuana license consulting expert and Quantum 9 is here to help.
The Michigan Marijuana Market
To begin with, the cannabis market is big in Michigan. The demand is so high that marijuana businesses are not able to keep up with supply. So, it is predicted that Michigan’s 2020 adult-use sales will total between $400 million and $475 million. With that, there is a lot of opportunity for marijuana business license applications. So, it is the right time to talk to our cannabis consultants at Quantum 9, who are experts at Michigan marijuana license consulting.
Also, the recreational marijuana market in Michigan is popular and sales are high. Between June 8 and June 14, recreational marijuana sales totaled $10.02 million. On top of that, Michigan’s patient count has declined by 7 percent since recreational marijuana is now legal.
Michigan Marijuana Rules and Limits
Adults 21 years of age or older can legally possess up to 2.5 ounces of marijuana outside their home. Additionally, adults are able to keep up to 10 ounces within their property. On top of that, adults can cultivate up to 12 cannabis plants and have no more than 15 grams of cannabis concentrates. The same limits apply to medical marijuana patients, except a caregiver would also be able to possess 2.5 ounces of marijuana and 12 marijuana plants.
Although recreational marijuana is legal in Michigan, adults can not consume marijuana wherever they please. This means that marijuana can only be consumed on private property and driving under the influence remains illegal. Lastly, one can transport marijuana as long as the products have a seal and in the trunk of one’s car.
What Are The Application Requirements?
In order to apply for a Michigan marihuana license, one must apply on a form created by the agency and pay a non-refundable application fee.
Applicants will have a prequalification phase to fill out any required documents. Within this phase, applicants will also receive a background check. Once the application passes this initial step, the application will enter the license qualification phase.
Secondly, applicants need to disclose financial statements and show proof of capital in order to qualify for a Michigan marijuana license. So, Michigan marijuana license consultants can help individuals disclose the right information. These financial statements include documents such as tax information, account balances, etc. Information about the application requirements for both medical and recreational licenses can be found in section R420.4, within the marijuana license rules.
Local Control
Also, these applications must be in compliance with any municipal ordinances within the medical marihuana facilities act, or the Michigan regulation and taxation of marihuana act. This is important to keep in mind as about 1,400 Michigan communities opted out of allowing marijuana establishments.
Secondly, a marijuana business can not be located within 1,000 feet of a public or private school. But, a municipality can argue to reduce to distance requirement if need be.
As one can see, requirements for Michigan marijuana licenses differ based on which license you are applying for. For example, a marihuana grower license would require different information in comparison to a marihuana processor license. This is why it is necessary to use cannabis consulting services, as the details for these applications are very specific.
What Are The Application Fees?
An applicant for a Michigan marijuana license must submit a nonrefundable application fee of $6,000. With that, additional fees may apply based on the state license type. The agency will determine the fee based on gross weight and gross retail sales. This is all based on what license one is applying for. Michigan marijuana business licenses are valid for one year and include a renewal fee.
More information about these fees can be found in Rule 420.7 within Michigan marihuana license rules. Our cannabis consultants at Quantum 9 can explain the costs involved with different licenses to interested entrepreneurs.
What Licenses Are Available?
To begin with, there are different licenses available within the recreational and medical cannabis markets in Michigan. Under the Michigan Regulation and Taxation of Marihuana Act, one is able to obtain a:
- Grower License
- Processor License
- Retailer License
- Microbusiness License
- Secure Transporter License
- Safety Compliance Facility License
All of these licenses vary in rules and requirements, which is why it is important to use a cannabis consultant when trying to chose what business is right for you.
There are also different licenses available under the Medical Marihuana Facilities Licensing Act. The licenses available under this act include a:
- Grower License
- Processor License
- Secure Transporter License
- Provisioning Center License
- Safety Compliance Facility License
As one can see, there are more licenses available within the recreational marijuana market. Also, a Michigan dispensary can sell both recreational and medicinal marijuana.
The infographic below contains more information about the licenses available for recreational licenses in Michigan.
Stacked and Special Licenses
Now let’s talk about stacked and special licenses. So, a licensee who holds a license as a marijuana grower can apply to stack class C licenses. With that, additional fees apply for each marijuana license.
A person can apply for a special license under the Michigan regulation and taxation of marihuana act. These licenses include a:
- Designated Consumption Establishment License
- Excess Marihuana Grower License
- Marihuana Event Organizer License
- Temporary Marihuana Event License
Rule 420.21 contains more information about these licenses. Our cannabis consultants at Quantum 9 can explain the differences in these special licenses as well.
Social Equity for Michigan Marijuana Licenses
Social equity is incredibly important within the marijuana market in Michigan. A social equity applicant can total up to 75% off of application and license fees if done right. For example, if a shareholder has had a conviction of a marijuana-related offense they can receive up to a 40% reduction in application and permit fees, based on the severity of the offense. With that, Michigan marijuana license consulting can help you benefit from these fee reductions.
Also, operating marijuana businesses in disproportionately impacted communities can knock off some application and license fees. With that, around 184 communities statewide fall under this category. More information on Michigan’s social equity program can be found here. Taking advantage of the social equity program can save you a ton of money. So, make sure to use a cannabis consulting company like Quantum 9, to help you with Michigan marijuana license consulting.
Where will Tax Money Go?
Michigan has a standard sales tax of 6%. In addition to this, an excise sales tax of 10% will be put on all marijuana sales. So, where will this tax money go?
Well, most of the revenue collected from the 6% sales tax will go into Michigan’s School Aid Fund. For the excise tax, 35% is for improving state roads, 35% is for schools, and 30% is for local governments, including Michigan counties and cities with marijuana businesses.
How Should a Michigan Marijuana Business Plan Look?
Additionally, an applicant must submit a marijuana business location plan for the proposed business. This plan must include the type of marijuana business, location of the business, and a description of the municipality where the Michigan marijuana business will be located. The application should also include a diagram of the marihuana business, as well as a detailed floor plan. Other aspects such as a security plan and zoning information must be within the application. Again, it is incredibly important to use a cannabis consultant to make sure the business plan exceeds expectations.
All in all, the Michigan marijuana market is very profitable and many opportunities exist. Again, our cannabis consultants are experts within this market and are ready to help. More information about our consulting services can be found here.
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