On Sept. 22, 2016, Michigan enacted H.B. 4209, which aimed to license and regulate medical marijuana—spelled “marihuana”—in Michigan. On May 30, 2018, that Michigan’s Department of Licensing and Regulatory Affairs (LARA) promulgated its second iteration of emergency regulations, helping to provide a regulatory structure for Michigan to actually license medical marijuana facilities.
Most importantly, Emergency Rule 7 establishes a nonrefundable application fee of $6,000 for any entity desiring to be a medical marijuana grower, processor, provisioning center, secure transporter, and/or safety compliance facility. Applicants seeking multiple types of licenses (e.g., a grower and a processor license) must only pay one application fee.
Already in effect via H.B. 4209, § 603(3), is the required annual “regulatory assessment” for licensed growers, processors, provisioning centers, and secure transporters. The amount of the assessment varies vary by year, depending on regulatory expenses, among other things.
Also already in effect is the medical marijuana gross receipts tax on provisioning centers (similar to medical marijuana dispensaries in other states). Specifically, provisioning centers are subject to a 3 percent tax on their gross retail receipts, as required by H.B. 4209, § 601(1). When medical marijuana sales begin, this tax must be paid quarterly to the Michigan Department of Treasury.
Now that application fees, regulatory assessments, and the gross receipts tax are finalized, LARA is actively accepting applications for licensure from interested parties. More information regarding licensing can be found on LARA’s website.
For additional news on both the medical and recreational marijuana industries, be sure to follow Bloomberg Tax’s products.
Continue the discussion on Bloomberg BNA’s State Tax Group on LinkedIn: Which state do you think will be the next to implement a medical marijuana regime?
Get a free trial to Bloomberg Tax: State, a comprehensive research service that provides deep analysis and time-saving practice tools to help practitioners make well-informed decisions.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)