Recreational Cannabis in Vermont Coming Soon
Vermont may become the second state in the nation to legalize a regulated commercial recreational market through its legislature. This means a recreational cannabis market in Vermont will be here sooner than later.
The Vermont House just passed the final version and won the vote at the end of September 2020. Vermont currently has an adult-use home-grow and possession program. But, commercial sales and a taxation program do not exist for recreational cannabis in Vermont.
Our Vermont cannabis consultants at Quantum 9 are here to explain how you can make money off of this popular market.
Vermont and Cannabis Dispensaries
As mentioned, Vermont currently has an adult-use home-grow and possession program. So, it is legal for the people of Vermont to consume cannabis but business entrepreneurs have not been able to make money off of this market.
Well, Vermont finally says yes to recreational cannabis dispensaries and our cannabis business consultants are here to explain how you can get your foot in the door.
That’s right, the Vermont legislature finally passed a bill that allows the state’s first licensed retail store to open no later than May 1, 2020.
Adult-Use Market in Vermont
Medical marijuana is currently legal in Vermont and those with a medical card can purchase cannabis from a dispensary.
An adult-use cannabis program in Vermont can bring in up to $130 million to $160 million within 5 years of the program. The market is huge and profitable for those trying to involve themselves with the cannabis business. Now, let’s see what licenses are available and how you are able to open a dispensary.
What Cannabis Licenses Are Available in Vermont?
With this new legal recreational market, multiple license opportunities are available. The five types of licenses that will be available for recreational cannabis in Vermont include:
- Cultivator License
- Wholesaler License
- Product Manufacturer License
- Retailer License
- Testing Laboratory License
With that, the board will develop tiers for cultivator licenses based on the plant canopy size of the cultivation operation.
Applicants can obtain a max of one type of each license under the new act. Each license allows one location of the establishment.
How to Win a Cannabis License in Vermont
Since the Vermont cannabis market is large, it is a gold-mine for those who want a cannabis business. With that, you have to make sure your application is up to par so that you can win these cannabis licenses. If you have any questions, utilize a Vermont cannabis consultant at Quantum 9.
Also, the board uses a system of priorities for recreational cannabis licenses in Vermont. This system will look at criteria for consideration including the following:
- Whether the majority of applicants are residents of Vermont.
- If the applicant has a medical marijuana dispensary that is in good standing with the board.
- Social justice and equity. The board will favor minority and women-owned businesses.
- Also, the board will favor those with specific plans to hire and recruit minorities, women, and those who have been negatively affected by past cannabis laws.
- Specific plans to pay employees a living wage and offer benefits.
- Environmental sustainability plans.
- The geographic distribution of cannabis establishments based on market needs.
As you can see, these priorities are not impossible to be a part of. As long as you have a detailed application, success in obtaining a cannabis license is very possible. Granted, the detail takes a lot of work, so make sure to contact our cannabis business consultants for help in these applications.
Application Process for Recreational Cannabis in Vermont
An applicant must be over the age of 21 and shall consent to the release of their criminal records. Also, the board will obtain a criminal history record for the applicant, each proposed principal, and each individual who would control the business. The applicant must submit an operating plan as well. Contact a Vermont cannabis consultant for more information on the application process for recreational cannabis in Vermont.
You can take a look at the full timeline of Vermont’s retail rollout here.
The board will charge and collect license application fees, initial annual fees, and annual license renewal fees for each cannabis license. These fees will be determined later and shall be payable at the time of the license application. We can assume that the application fees will be similar to the medical market fees in Vermont.
Taxes For Cannabis in Vermont
Medical marijuana remains tax-free for patients. As for recreational cannabis in Vermont, a 20 percent tax exists for the future commercial market. So, this includes Vermont’s 6 percent statewide sales tax, plus a 14 percent cannabis tax.
Additionally, a municiplity or local government can prohitibit recreational cannabis establishments in Vermont.
What’s Next for Recreational Cannabis in Vermont?
We will see commercial sales of recreational cannabis in Vermont sooner than later. It’s important to start the application process early so you can guarantee a spot in this money-making market. For more information contact a Vermont cannabis consultant at Quantum 9.