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Upcoming Cultivation Deadline
The Cannabis Control Board (CCB) will be indefinitely closing Tier-3 cultivation licenses and Mixed Tier-2 cultivation licenses, effective midnight April 1st, 2024. Applications must be submitted by March 31, 2024. It’s important to note that pre-qualification evaluation applications are not considered licensure applications. Incomplete or draft license applications will not extend the deadline. An application is considered complete only if it includes all necessary answers, information, and supporting documents. Failure to respond appropriately to requests for clarification or additional documentation may result in the dismissal of the application. Get in-touch with CannDelta today to get a cultivation license before it’s too late!
Vermont Cannabis License Overview
In 2020, Vermont legalized adult-use cannabis through Act 164, also known as Vermont S. 54. This legislation aims to establish a fair adult-use cannabis market, support the existing Medical Marijuana Program, and ensure public health and safety. Municipalities must opt-in to allow adult-use cannabis retail establishments, with special emphasis on awarding licenses to Social Equity applicants.
The Cannabis Control Board (CCB) was created to oversee the program, issue licenses, and enforce regulations. In 2021, Act 62 expanded the CCB’s responsibilities to define Social Equity Applicants, establish reduced fees for them, and create the Cannabis Business Loan Fund. The CCB is focused on creating an equitable and accessible program to address the harm caused by cannabis prohibition, particularly targeting marginalized communities disproportionately affected by past government policies.
As of 2024, Vermont has five medical cannabis dispensaries and at least 51 recreational cannabis dispensaries licensed by the CCB.
Social Equity
Both individuals and businesses can apply for Social Equity Status
Social Equity Applicants applying as an individual that is the sole owner of the cannabis businesses must live in Vermont and meet at least one of the following criteria:
- Be Black or Hispanic.
- Have a history of incarceration or serving a sentence in a correctional facility due to a cannabis-related conviction.
- Have a family member with a history of incarceration or serving a sentence in a correctional facility due to a cannabis-related conviction.
- Belong to a community that has historically been disproportionately affected by cannabis prohibition.
Applying for Social Equity status as a business requires that at least 51% of the businesses ownership is made up of Social Equity Applicants as determined by the aforementioned criteria.
After obtaining a license, social equity applicants are eligible for reduced application and annual license fees as outlined in the following schedule.
Economic Empowerment Candidates
Applicants that do not meet the CCB’s social equity program criteria but are a part of a historically disadvantaged community may qualify as an economic empowerment candidate. These candidates receive priority review for license applications compared to non-social equity and non-economic empowerment applicants. Economic empowerment applicant businesses must have at least 51% ownership by a member of a historically disadvantaged community.
The Economic Empowerment Candidates must be any one of the following:
- Women
- Veterans
- Members of the LGBTQIA+ community
- First Nation/Indigenous/Native Americans
- Asian American / Pacific Islander
- Other communities of color not explicitly named in the social equity program.
Fees & License Types
All applicants are required to submit a one-time $1,000 application fee. Applicants have the option to undergo either the pre-qualification or “intent to apply” process, with a $500 non-refundable fee applicable to pre-qualification. If the applicant is seeking full licensure within one year, this fee can be applied towards the $1,000 application fee. All other fee’s are listed in the license type descriptions below.
A 14% cannabis excise tax is applied to the retail sales price of cannabis and related products. Municipalities are prohibited from imposing any specific tax on cannabis products.
There are 6 different license types available in Vermont: Cultivation, manufacturing, retail, wholesale, testing laboratories, and integrated licenses. Cannabis businesses can vertically integrate, but they cannot hold more than one license type at a time.
All license fees must be paid on an annual basis.
Cultivation
Applicants must distinguish specifications about their operation before being awarded a Vermont cannabis cultivation license. The type and tier of cultivation operation they will have is determined by the size of the proposed operation. This license allows the holder to grow cannabis plants inside, outside, or in both.
All outdoor cultivation applicants need to disclose whether they will be using square feet or the number of plants to determine what tier they are applying for.
Indoor cultivation applicants must calculate their tier based on canopy square footage. This application does not permitted plant counts as a determining factor for cultivation tier on the application.
Mixed cultivation applicants must provide details about canopy square feet or plant counts to determine which tier they fall into.
Manufacturing
Manufacturing licenses authorize the creation of cannabis products like edibles, oils, and extracts from cannabis plants. This license is categorized into three tiers, determined by extraction method and annual gross revenue.
Retail
There are two retail license tiers that authorize different activities. Having a storefront retail license will allow the holder to open a dispensary for recreational cannabis product sales to conusmers over the age of 21. Retail Licenses have an associated fee of $10,000.
Storefront: Storefront retail licenses allow for a physical retail location intended for cannabis sale. Storefront retail dispensaries can also sell all the products that a retail nursery can sell.
Nursery: Nursery retail licenses can sell clones and seeds to home cultivators or other license holders.
Wholesale
A wholesale license allows for the purchase of cannabis and cannabis products from one licensed establishment for the purpose of sale to another licensee. Wholesalers cannot sell to the general public. Wholesale Licenses have an associated fee of $4,000.
Testing Laboratories
This license allows for the holder to test cannabis and cannabis products obtained from a licensed cannabis establishment, dispensary, or member of the public. Testing Labroatory Licenses have an associated fee of $1,500.
Integrated Licenses
This license type allows the licensee to engage in different aspects of each license type’s activities. Integrated Licenses have an associated fee of $100,000
Municipal Control
Local municipalities have the authority to establish a local cannabis control commission responsible for issuing and managing local control licenses. These licenses must adhere to zoning regulations. If a cannabis establishment operates within a jurisdiction with a local cannabis control commission, it must obtain a municipal control license before being licensed by the Cannabis Control Board.
Frequently Asked Questions
How do I Open a Dispensary in Vermont?
Opening a Vermont dispensary will require a retail license. Getting a retail license will require a successful license application submission. If you don’t already have an existing cannabis business, you will need to submit a pre-qualification application before submitting a full application. You will need to submit a series of detailed documents including operating plans, financial information, security plans, and much more. Once you obtain a license for your business entity, you will need to make sure all fees are paid, begin developing your brand and marketing strategy, develop a product portfolio, hire and train staff, and more.
How Much Does it Cost to Start a Dispensary in Vermont?
getting a Vermont Dispensary License costs $10,000. However, opening a recreational marijuana dispensary will involve many other costs. These will include property costs, marketing and advertising, site build-out, and much more. As a result, opening a marijuana dispensary usually costs between $50,000 to over one million dollars.
How do I Apply for a Dispensary License in Vermont?
To apply for a dispensary license in Vermont, you will need to submit a pre-qualification application unless you already have a licensed cannabis business. Getting a Vermont cannabis license of any type will require a formed business entity, background checks, and much more including extensive documents such as business and operational plans.
How Much is a Cultivation License in Vermont?
The price of a Vermont cannabis cultivation license depends on the type and tier of the license. The prices span from $750 (tier one outdoor cultivation) to $75,000 (tier six indoor cultivation) for a Vermont cannabis cultivation license
How do I get a Dispensary License in Vermont?
You can get a Vermont dispensary license by meeting eligibility requirements and submitting a pre-qualification evaluation application followed by Retail License application. This will require you to submit a series of detailed documents including operating plans, financial information, security plans, and much more.
