Mississippi Medical Cannabis Act

Mississippi Medical Cannabis Act (SB 2095)
 

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

The Mississippi Department of Revenue (MDOR) in collaboration with the Mississippi State Department of Health (MSDH) has worked to design and implement an electronic application process. Medical Cannabis Dispensary License applications will be available via the State’s electronic medical cannabis licensing system no later than July 2022. MDOR will issue licenses within 30 days of receiving the COMPLETED application, including all required information and documents.

For a checklist of application requirements click here.

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

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 updated Dispensary Regulations issued on May 13, 2022, after a two-week public comment period. Changes include clarification or additions to regulations covering the following subjects:

  • Clarification on “Economic Interest”
  • Allowance for certain discounts and branded merchandise
  • The application process for facilities still under construction
  • Distance measurements in relation to schools, churches and child care facilities
  • Allowance for maintenance on individual surveillance cameras that does not affect other coverage
  • Advertising and marketing
  • Procedures for retail sale areas
  • Clarification as to management agreement issues
  • Reporting requirements to the Prescription Monitoring Program
  • Required training for the seed-to-sale system
  • Transportation of cannabis

Dispensary Regulations

Proposed regulations for taxes applicable to medical cannabis are now available for public comment through May 27, 2022. Please send any comments to cannabis@dor.ms.gov.

Medical Cannabis Excise Tax Regulation

Medical Cannabis Establishment Sales Tax Regulation

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

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
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. Upon availability, you may register for a cannabis excise tax account at www.tap.dor.ms.gov.

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 will be available via the State’s electronic medical cannabis licensing system soon.

Contact Us

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