Mississippi Medical Cannabis Act

Mississippi Medical Cannabis Act (SB 2095)
 

The Mississippi Medical Cannabis Act was signed into law February 2, 2022.

 

If you intend to apply for a Medical Cannabis Dispensary please check the Public Registry for locations where licenses have already been issued to ensure that your main point of entry is greater than 1500 feet from an already issued licensees main point of entry.

PUBLIC REGISTRY OF MEDICAL CANNABIS DISPENSARIES (Updated Weekly) -NEW

 

The Mississippi Department of Revenue (MDOR) is accepting electronic applications for Medical Cannabis Dispensary Licenses. MDOR will issue licenses within 30 days of receiving the COMPLETED application, including all required information and documents.

APPLY NOW

For a checklist of application requirements, click here - Updated June 16, 2022

For a map and list of cities and counties that have opted-out of dispensaries, click here.

For the Affidavit of Background Check, click here

For general information relating to background check procedures, please click here

For the statement of Local Licenses and Permits, click here

 

Application Process for Areas that Vote to Opt-Back-In to the Medical Cannabis Program

The following is the process by which applications for medical cannabis dispensaries will be handled in areas where the governing bodies vote to opt-back-in to the Medical Cannabis Program:

If MDOR learns that the governing body of a city or county has held a vote to opt-back-in to the Medical Cannabis Program, MDOR will request a certified copy of an order or minutes evidencing the governing body’s decision. Upon receipt, MDOR will then set a date and time on which it will begin accepting applications for medical cannabis dispensaries in that city or county. This date and time will be posted on the MDOR Cannabis page at https://www.dor.ms.gov/mississippi-medical-cannabis-act.

Part of the application process for a dispensary includes attesting that the premises of the proposed dispensary is not located in a city or county that has voted to opt-out of the Medical Cannabis Program. Therefore, any individual or entity who submits an application prior to a vote occurring will be denied. Denial under those circumstances will result in forfeiture of the $15,000 non-refundable application fee.

If an individual or entity submits an application after a vote to opt-in but prior to the date and time set by MDOR for accepting applications, the application will be rejected. The applicant will then be required to resubmit the application after the date and time set by the Department. The applicant will not receive any priority based on filing an application prior to the date and time set by the Department, and the Department will not hold the application until submission is available.

 

Sales Tax 

Register for a Sales Tax account and apply for a permit on TAP. This process could take up to three weeks, so please apply at your earliest convenience.  To complete an application for a dispensary license, you must have FIRST received a sales tax permit ID.  

When applying, use the following NAICS codes:

Type of Licensure

NAICS Code

Cultivator/Grower

111419

Processor/Wholesaler

424590

Transporter (local freight)

484220

Transporter (long distance)

484230

Testing Facility

621511

Dispensary

453998

Waste Disposal

562211

 

Secretary of State Registration

If a company plans to apply for licensure through the Mississippi Department of Revenue for the medical cannabis dispensaries through the Mississippi Medical Cannabis Program, the potential applicant should register with the Mississippi Secretary of State’s Office.

 

Dispensary Regulations

Below are the Medical Cannabis Dispensary Regulations. These Regulations were updated on June 24, 2022. Recent updates include:

  • Chapter 2, Paragraph 102- Remove requirement that fingerprint cards be uploaded to the application. Instead, an applicant will upload an affidavit affirming that he or she has not been convicted of a disqualifying felony or suffered certain criminal actions
  • Chapter 15, Paragraph 104- Provide guidance prohibiting dispensary premises being shared with another business.

Dispensary Regulations

The Affidavit for Background Check may be found under the “Application Forms” tab below.

Licensing

The Mississippi Department of Revenue has been tasked with licensing, regulating, and enforcing the law for medical cannabis dispensaries. The Alcoholic Beverage Control Enforcement Division of the Mississippi Department of Revenue will be the point division within the Department for licensing and regulating dispensaries. It will also be responsible for enforcing medical cannabis laws as they apply to the proper purchase, sale, and distribution of medical cannabis at dispensaries.

The Mississippi Department of Health is the primary agency that will be over the medical cannabis program and will handle the licensing, regulating and enforcement of laws relating to:

  • Patient’s cards
  • Medical Practitioners
  • Cannabis Cultivation Facilities
  • Cannabis Processing Facilities
  • Cannabis Testing Facilities
  • Cannabis Waste Disposal Entities
  • Cannabis Transportation Entities

For inquiries regarding the above list related to the Mississippi Medical Cannabis Program, contact the department at MSMedicalCannabis@msdh.ms.gov

General Cannabis Dispensary License Information

The Mississippi Medical Cannabis Act defines the medical cannabis dispensary as an entity licensed and registered with the MDOR that acquires, possesses, stores, transfers, sells supplies, or dispenses medical cannabis, equipment used for medical cannabis, or related supplies and educational materials to cardholders. A dispensary can only be in an area zoned commercial or in an area that is not otherwise prohibited from having commercial businesses.

License Fees:

  • First Year: $40,000
    • Non-Refundable Application Fee: $15,000
    • Annual License Fee: $25,000
  • Yearly Renewal: $25,000

Requirements for Dispensary License:

  • Legal Name of Business and Physical Address (No PO Box allowed)
  • Proof of Mississippi Secretary of State Registration, if applicable
  • Mississippi Sales Tax Permit Number
  • Management Service Agreements, if applicable
  • Deed of Trust, Lease Agreement, or Contingent Agreement, if applicable
  • Proof that main entrance of proposed location is not within 1,000 feet of the property boundary line of any school, church, or childcare facility (Distance Waiver form required if within 1,000 feet)
  • No medical cannabis dispensary may be located within a 1,500 feet radius from the main point of entry of the dispensary to the main point of entry of another medical cannabis dispensary
  • Proof that location meets county or city zoning / sworn statement certifying proposed location is compliant with said restrictions
  • Proof of local license registration if required by city or county in which proposed premises is located
  • List of all owners, partners, members, officers, board members and anyone with an economic interest
  • List of all professional licenses held by each member and proof that each are in good standing
  • Acknowledgement of Waiver and Authorization to Release Information for each member
  • Diagram of licensed premises
  • Operations plan
  • Security plan
Application Forms

Licensee Certification And Oath

Waiver and Authorization to Release Information (MSDH)

Waiver and Authorization to Release Information (MSDOR)

Waiver Of Minimum Distance Requirements

Affidavit for Background Check

Statement on Local Licenses and Permits

Eligible Applicants
  • Individuals at least twenty-one (21) years of age
  • Any owner, board member, officer, or anyone with an economic interest in the entity must be at least twenty-one (21) years of age
  • Not currently serving as a member of the Mississippi Senate or House of Representatives or spouse of a member of the Mississippi Senate or House of Representatives through December 31, 2022
  • Has not previously held a Cannabis related license that has been revoked
  • Has no outstanding tax liabilities owed to the State of Mississippi
  • Has never been convicted of a disqualifying felony as defined by the Mississippi Medical Cannabis Act
  • Applicants are not required to be residents of the State of Mississippi to obtain a dispensary license
Fair Market Values for Cannabis Excise Tax

The fair market value applicable to cannabis excise tax is now available for public viewing. Please read the Notice of Fair Market Values for Cannabis Excise Tax.

 

Sales Or Transfers From A Cultivation Facility To A Medical Cannabis Establishment  

A 5% excise tax shall be applied to the sales price of a cultivation facility’s first sale or transfer of cannabis flower or cannabis trim to a medical cannabis establishment.

Sales Or Transfers From A Cultivation Facility To A Medical Cannabis Establishment With Common Ownership  

The 5% excise tax shall be calculated using the fair market value of the cannabis flower or cannabis trim on the first sale or transfer of cannabis flower or cannabis trim to a medical cannabis establishment having common ownership with the cultivator. The fair market value is only used when the cultivator shares common ownership with the medical cannabis establishment.

The fair market value of medical cannabis flower and medical cannabis trim is set by the Department for the purposes of levying the cannabis excise tax pursuant to Senate Bill 2095 of the 2022 Regular Legislative Session on the first sale or transfer of medical cannabis flower or medical cannabis trim between cultivators and other common ownership medical cannabis establishments. MS Administrative Code 35.VIII.4.01

The fair market values effective July 1, 2022 are as follows:

Category

Fair Market Value

Flower sold to common interest establishment

$3,200 per lb

Trim sold to common interest establishment

$640 per lb

 

Beginning January 1, 2023, the MDOR shall recalculate and adjust the fair market value of cannabis flower and cannabis trim twice per calendar year on January 1 and July 1

If you have any questions, please contact the Sales Tax Department at 601-923-7015.

 

Taxation

There are two taxes associated with the sale of medical cannabis. Applicants will be required to obtain applicable tax permits as part of the application process.

  • Medical cannabis cultivators are subject to a 5% excise tax on the first sale/transfer of medical cannabis.
    • Excise tax is due if the cultivator sells to a processing facility.
    • Excise tax is due on the transfer of cannabis between related entities.
  • Medical cannabis dispensaries will charge the standard 7% sales tax to cardholders at the point of sale. Dispensaries will also be responsible for special tax levies in the cities of Jackson & Tupelo.

A sales tax account and permit will be required by medical cannabis cultivators and medical cannabis processors if making sales of tangible personal property (i.e. medical cannabis) (MS Code Ann §27-65).

A direct pay permit may be required by medical cannabis processors if the processor is manufacturing a medical cannabis product.

For more information regarding Sales Tax, click here.

Applicable Income tax or Withholding tax may be due for any medical cannabis establishments under this program including those licensed by the Mississippi Department of Health.

All taxes collected must be remitted to the Mississippi Department of Revenue. You may register for a cannabis excise tax account on TAP.

Medical Cannabis Excise Tax Regulation

Medical Cannabis Establishment Sales Tax Regulation

Work Permits

Every potential employee of a medical cannabis facility must apply for, and be issued, a work permit prior to beginning work. This permit will be issued to the individual, not the facility, and does not have to be transferred should the individual change facilities. To be eligible to receive a permit:

  • must be at least twenty-one (21) years of age;
  • cannot have a disqualifying felony;
  • must complete eight (8) hours of training; and
  • complete five (5) hours of training thereafter on an annual basis.

Electronic applications are available now via the State's Medical Cannabis Licensing Portal. APPLY NOW

Contact Us

Email: abcpermitdepartment@dor.ms.gov
Phone: 601-923-7700
Mailing Address:
Mississippi Department of Revenue
ABC Permits
P O Box 22828
Jackson, MS 39225