Vermont becomes the 11th State to Allow Legal Sales
On Wednesday (10/7/20), Vermont Governor Phil Scott allowed a bill to tax and regulate Cannabis to pass into law without his signature, and signed off on automatically expunging records for cannabis possession. Beyond having been a part of the discussion since 2013, this is a momentous week for the people of the State of Vermont.
The Adult Use Bill (S. 54) sets up a system for the legalized retail sale of cannabis and requires municipalities to opt-in to allow retail cannabis stores to operate. It imposes a 14% excise tax and a 6% sales tax on cannabis transactions. Municipalities receive a share of the state’s cannabis licensing fees. Sales are expected to begin in 2022.
The bill also contains language creating social equity provisions – such as prioritizing cannabis business licenses for minorities, women and people disproportionately impacted by the War on Drugs. A – as of yet nonexistent – independent regulatory commission would additionally be created to promote small business participation in the market.
Here’s some of the basic info around S.54:
- A 14% excise tax on retail sales will be collected by the state. Local sales taxes may apply, too.
- Public consumption of cannabis products would continue to be illegal.
- The new law would leave intact rules that govern medicinal marijuana and dispensaries.
- Towns and cities must authorize sales within their jurisdictions, according to S.54, and can impose zoning restrictions on Cannabis production.
- 30% of state tax revenue from retail sales is earmarked for after-school learning programs, including those for drug education and prevention.
- In a provision that addresses road safety, the law allows court testimony on driver impairment by trained drug-recognition experts.
Thinking about getting a head-start on building your Vermont Cannabis brand? Fill out the form below and let’s get you ready for 2022!