Breakdown of Application, Licensing, and Renewal Fees in Adult-Use States
Cannabis application and licensing fees vary in the 15 states where cannabis is legal for adults’ use. In some states, the fees depend on the size, type, or profitability of the business. Fees can be set by statute or by regulation, often with caps or guidance in the statutes.
Application fees range from $100 for small growers in Maine and Massachusetts to $6,000 for Michigan applicants, with most states charging no more than $1,000 in application fees. Meanwhile, licensing fees range from as low as $9 per plant for small, outdoor grows in Maine to as high as $850,000 for large Illinois medical cannabis growers that transitioned to also serve adult-use consumers. The bulk of hefty early-start fees in Illinois were earmarked for start-up loans and grants for businesses run by individuals from communities who were hardest hit by the war on cannabis. Several other states are considering this model.
It is important that fees and other financial requirements for small cannabis businesses be reasonable. With the possible exception of large businesses, fees should be no higher than what is necessary to cover regulatory costs. Small farms, individuals and communities that have been the most impacted by prohibition, and current and prospective small businesses should be included in this new industry, and excessive fees or high capital requirements can make that impossible.
State
Application Fees
Retail License
Cultivation License
Product Manufacture License
Lab License
Other Licenses
Alaska
$1,000 application and renewal
Initial: $5,000
Annual renewal: $7,000
Limited, initial: $1,000
Annual renewal: $1,400
Standard, initial: $5,000
Annual renewal: $7,000
Concentrates only, initial: $1,000
Annual renewal: $2,000
Standard, initial: $5,000
Annual renewal: $7,000
Initial: $1,000
Annual renewal: $5,000
Onsite consumption endorsement: $2,000
Arizona
TBD
(law enacted in Nov. 2020)
TBD, must be no more than five times medical dispensary licensing fees. That would be a maximum of $25,000 initially and $5,000 for a renewal. Dispensaries are vertically integrated.
Vertically integrated — see Retailer column
Medical has a $2,500 fee to change or add a cultivation site. Five times that would be up to $12,500.
Vertically integrated — see Retailer column
TBD, must be no more than five times medical dispensary licensing fees. That would be a maximum of $25,000 initially and $5,000 for a renewal.
N/A
California
Cultivation: Ranges from $135 (special cottage outdoor) to $8,655 (medium indoor)
Product manufacture: $500 or $1,000
All others: $1,000
$4,000-$120,000 annually (based on estimated value of planned operations)
$2,000-$75,000 annually depending on gross annual revenue
Ranges from $1,205 (cottage outdoor) to $77,905 (medium indoor) annually
$12,500-$90,000 annually (based on estimated value of planned operations)
Distributor: $1,200-$200,000 annually
Micro-business: $10,000-$180,000 annually (fee based on estimated value of planned operations)
Events: $5,000-$10,000 (based on number of events)
Colorado
Initial — store, cultivator, manufacturer: $5,000
Initial — lab, transporter, hospitality: $1,000
Annual renewal: $300
Initial: $2,000
Annual renewal: $1,500
Initial: $1,500
Renewal: varies based on plant numbers
1-500 plants: $1,500
501-1,500: $2,300
1,501-3,000: $3,500
Each additional 3,000: $800
Initial: $1,500
Renewal: $1,500
Initial: $1,500
Renewal: $1,500
Transporter: $4,400 (initial and renewal)
Hospitality: $1,000 initial, $750 renewal
Research and Development: $1,500
Illinois — early start for medical providers
Permit fee: $30,000
Social equity fund: $100,000 (or 3% of 6/2018 - 6/2019 sales, if it is less)
and
by 3/31/21, a $100,000 social equity obligation (or 3% of 6/2018 - 6/2019 sales)
Second license: $200,000 to the fund
Bi-annual renewal: $60,000
Permit fee: $100,000
Social equity fund: $250,000 to $750,000 (based on 5% of 6/2018 - 6/2019 sales)
and
by 3/31/21, a $100,000 social equity obligation (or 5% of 6/2018 - 6/2019 sales)
Annual renewal: $100,000
Vertically integrated with cultivators
Illinois
$5,000, unless revised by rule
Reduced by half for certain social equity applicants
$60,000
May be waived for certain social equity applicants
Cultivation centers: $100,000 annually
Craft growers: $40,000 annually
May be waived for certain social equity applicants
Renewal: $20,000 annually
May be waived for certain social equity applicants
Transporter: $10,000
May be waived for certain social equity applicants
Maine
Cultivation: $100 (Tier 1) or $500 (Tiers 2-4)
Retail, lab, manufacturer: $250
Sample collector: $100
Nursery: $60
$2,500
Annual fees:
Outdoor:
Tier 1: $9/mature plant or $250 Tier 2: $1,500 Tier 3: $5,000 Tier 4: $15,000 +$5,000 for approved increases in canopy
Indoor/Both:
Tier 1 $17/mature plant or $500 Tier 2: $3,000 Tier 3: $10,000 Tier 4: $30,000 +$10,000 for approved increases in canopy
$350 for nurseries
$2,500
$2,500
Sample collectors: no more than $250
Massachusetts
Cultivator: $100-2,000
Cooperative: Same, but also $100 or $200 fee for added location
Micro: $1,000
Product manufacturing, lab, social consumption: $1,500
All others: $300
Application fees are waived for social equity and economic empowerment applicants
$10,000 annually
Social equity, economic empowerment, and micro: $2,5000 annually
$1,250-$50,000 (Based on canopy size and indoor vs. outdoor)
Craft cooperatives: added $625 or $1,250 fee for additional location
50% lower annually for social equity, economic empowerment
$10,000 annually
Social equity, economic empowerment, and micro: $2,5000 annually
$10,000 annually
Social equity, economic empowerment, and micro: $2,5000 annually
Social consumption: $10,000 annually
Transporter: $5,000 annually
Delivery: $10,000 annually
Research: $10,000 annually
Social equity, economic empowerment, and micro: $2,5000 annually
Michigan
$6,000
Initial: $25,000
Annual renewal: $20,000, $25,000, or $30,000 depending on gross sales
Initial: $4,000, $8,000, or $40,000
Annual renewal: $3,000-$50,000 depending on gross weight transferred
Initial: $40,000
Annual renewal: $30,000, $40,000, or $50,000 depending on gross weight transferred
Initial: $25,000
Annual renewal: $20,000, $25,000, or $30,000 depending on tests conducted
Transporter: Same as stores
Onsite: $1,000 annually
Events: $1,000
Montana
TBD by regulators. Fees may not exceed the amounts needed to cover regulatory and enforcement costs.
TBD by regulators. Fees may not exceed the amounts needed to cover regulatory and enforcement costs.
TBD by regulators. Fees may not exceed the amounts needed to cover regulatory and enforcement costs.
TBD by regulators. Fees may not exceed the amounts needed to cover regulatory and enforcement costs.
TBD by regulators. Fees may not exceed the amounts needed to cover regulatory and enforcement costs.
TBD by regulators. Fees may not exceed the amounts needed to cover regulatory and enforcement costs.
Nevada
$5,000
Initial: $20,000
Annual renewal: $6,600
Initial: $30,000
Annual renewal: $10,00
Initial: $10,000
Annual renewal: $3,300
Initial: $15,000
Annual renewal: $5,500
Transporter, initial: $15,000
Annual renewal: $5,500
New Jersey
Note: This information is based on A. 21/S. 21, which passed the legislature but is not yet law as of Jan. 4, 2021.
TBD by Cannabis Control Commission; fees must be "reasonably calculated not to exceed the cost of the activity for which the fee is charged."
TBD by Cannabis Control Commission; annual fees must be "reasonably calculated not to exceed the cost of the activity for which the fee is charged."
TBD by Cannabis Control Commission; annual fees must be greater for more square feet of cultivation
Social equity excise fee set starting at 0.333% of the average retail price; may be increased by the Commission to up to $60/ounce if retail prices drop below $200/ounce.
TBD by Cannabis Control Commission; annual fees must be "reasonably calculated not to exceed the cost of the activity for which the fee is charged."
TBD by Cannabis Control Commission; annual fees must be "reasonably calculated not to exceed the cost of the activity for which the fee is charged."
Distributor: determined by the Commission, with higher fee for larger operations
Cannabis consumption area endorsement: determined by the Commission
Microbusinesses: Fees cannot exceed half the fee of non-microbusinesses of the same type