Minnesota Governor Tim Walz signed Bill HF into law on May 30, legalizing the recreational adult use of cannabis. Minnesota became the 23rd state to legalize the recreational adult use of cannabis. The law provides legal cannabis possession limits and residential cultivation rights, the dismissal of previous cannabis possession convictions, and sets forth a business licensing framework to be implemented by an Office of Cannabis Management. The licensing framework provides for singular types of cannabis businesses, such as cultivators or retailers, and for hybrid “microbusinesses” where two or more activities are permitted under one license.
A 10% excise tax will be imposed on cannabis sales to the retail customer in addition to state and local sales tax. While adults 21 and older are permitted to use cannabis recreationally beginning August 1, the timing of retail sales will be determined by the rulemaking of the yet-to-be established Office of Cannabis Management.
We will keep you updated with developments regarding state legalization of recreational adult use cannabis.
TECHNICAL INFORMATION CONTACTS:
Brian Stromen
Principal
Ryan
763.445.4200
brian.stromen@ryan.com
Christopher Potter
Director
Ryan
781.359.3800
christopher.potter@ryan.com
Britte Kirby
Senior Consultant
Ryan
781.463.0185
britte.kirby@ryan.com
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- Topics
- Transaction Tax
- Minnesota