The Mississippi Medical Cannabis Act was signed into law on February 2, 2022. It wasn’t an easy feat as Governor Tate Reeves wanted more regulations in place than were originally presented. It was a long road to get here but Mississippi isn’t looking back now. Redbud Advisors cannabis tax experts help prepare you for Mississippi Medical Marijuana rules and regulations as sales are expected to start later this year.
Keep in mind as the Mississippi Medical Cannabis Act matures rules and regulations may change. All information presented is the most up-to-date from the Mississippi State Department of Health at the time of publishing.
What is The Mississippi Medical Cannabis Act?
Mississippi voters decisively supported a medical marijuana legalization referendum in 2020, only to have it overturned by the state Supreme Court as unconstitutional. Mississippi's budding medical marijuana program is the latest indication that marijuana legalization is gaining traction in even the most traditionally conservative states. Applications for business or individual licenses are now open.
The Mississippi State Department of Health (MSDH) has authority and oversight of the Mississippi Medical Marijuana Act. The MSDH will communicate and coordinate with the Mississippi Department of Revenu (MDOR).
The Mississippi Medical Marijuana Act does not require all cities and counties to participate in this program. There is an opt-out option. So far a fair amount of counties and cities have opted out. The map below signifies the cities and counties in red that opted out.
The Mississippi Medical Marijuana Act legalized and regulates the use of medical marijuana with a written certificate from a healthcare provider for all qualifying patients. A qualifying patient is someone who has already received their medical identification card and has been diagnosed with various health problems outlined in the Medical Marijuana Act. The list below is a few conditions but not all applicable situations. For a full list of qualifications visit the Mississippi State Department of Health.
Cancer
Parkinson's
Muscular dystrophy
Glaucoma
HIV
Hepatitis
Crohn's
Ulcerative colitis
Alzheimer's
PTSD
Chronic medical condition/pain
Certified Medical Marijuana Practitioner Regulations
Mississippi healthcare providers will need to jump through some hoops in order to be legally certified practitioners for medical marijuana. This starts with being a licensed practitioner in the state of Mississippi. A provider wanting to be a certified medical marijuana practitioner will need to complete an application with the MSDH. Additional requirements for certified medical marijuana practitioners are listed below.
Completing 8 hours of an MSDH-approved continuing medical education course.
An additional five hours annually from an MSDH-approved continuing medical marijuana education course.
The practitioner and patient must be in a bona fide practitioner/patient relationship based on the practitioner's scope of practice.
Practitioners must perform an in-person exam.
Complete a follow-up exam in 6 months and reassess the patient's symptoms.
Only medical doctors and doctors of osteopathic medicine will be able to prescribe medical marijuana to a minor. The parent or guardian must give their consent.
Certificates issued for medical marijuana have to be on approved MSDH paper.
How Do I Open a Medical Cannabis Business in Mississippi?
If you are jumping at the chance to open up a medical cannabis business in Mississippi, we understand! Below is general information on starting a medical marijuana business in Mississippi.
Medical marijuana in Mississippi can not be used in public or in a vehicle
Not sure what type of business you want to establish in the medical marijuana industry? Or do you already have a business in mind? Find out below what acceptable businesses can apply for a Mississippi Cannabis Business License.
Cannabis cultivation facilities
Micro-cultivation (two tiers)
Processing
Micro-processing (two tiers)
Dispensaries
Transportation
Disposal
Research
Testing
Once you have the type of business established it is time to start the application process. Below are a few steps to get you started.
Register your business with the Mississippi Secretary of State.
Register with the Mississippi Medical Cannabis Program and complete the application for the business type.
When completing a Mississippi Cannabis Business License with MSDH, the location of the business must be listed on the application. According to the Mississippi Medical Cannabis Act “Medical cannabis establishments, including cannabis transportation facilities, cannot be within 1,000 feet of the nearest property boundary line of a school, church or child care facility.” A workaround is to ask for permission from the owner but even then a medical marijuana business can not be closer than 500 feet.
Take into consideration that the main entrance to your facility has to be at least 1500 feet away from another medical marijuana business.
The licensing fees can get steep-especially if you are a dispensary owner.
Once you successfully submit your application the process can take up to 30 days.
Special tax levies can be added by cities, Jackson and Tupelo.
The Dos and Don'ts of The Mississippi Medical Marijuana Act
With any Medical Marijuana act across the country, there are specific intricacies to each. Below is a list of important information to take note of in regard to the Mississippi Medical Marijuana Act.
Dispensaries in Mississippi are not permitted to sell cannabis trim or flower containing more than 30% THC or cannabis edibles, tinctures, oils, or concentrates that have more than 60% THC.
Medical marijuana in Mississippi can not be used in public or in a vehicle.
Medical marijuana can be used on private property unless the owner objects.
Mississippi measures allowable amounts of marijuana by a system called “Mississippi Medical Cannabis Equivalency Unit (MMCEU).” One MMCEU unit is equal to;
Three and a half grams of cannabis flower;
One gram of cannabis concentrate; or
One hundred milligrams of THC in an infused product.
The patient may have up to 28 MMCEUs.
What Do I Need to Know About Taxation?
Medical marijuana taxation isn’t the same from state to state. In some cases, it isn’t the same from city to city within the same state. It is important to be aware of the taxation specific to the location of your medical marijuana business. Information specific to the Mississippi Medical Marijuana Act are listed below.
Cannabis will be taxed twice, with the initial sale to the dispensary and again with the sale to the patient.
Cannabis cultivators will charge a 5% excise tax to dispensaries, processors, or products transferred to another related entity.
All dispensaries will charge a 7% state sales tax on purchases to cardholders.
Special tax levies can be added by cities, Jackson and Tupelo.
Conclusion
The Mississippi Medical Marijuana Act is well underway, applications are being processed and sales starting soon, it’s an exciting time in Mississippi. Redbud Advisors knows the excitement of a new business can quickly turn to feel overwhelming. Redbud Advisors is available to help this process be as painless as possible.
If you are just starting out in the medical marijuana industry in Mississippi it is important to have specialized cannabis accounting experts by your side to help you along the way. Doing this upfront can potentially save you costly mistakes in the future. At Redbud Advisors we are a full-service cannabis accounting firm capable of handling all your cannabis accounting and tax needs. We take the time to get to know our clients understand the direction of their business and align our advice with their goals.
To get answers to your questions and expert advice you can contact Redbud Advisors at hi@redbudadvisors.com or give us a call at 866-830-5144.
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