Minnesota Officially Becomes 23rd State to Legalize Recreational Cannabis

May 30, 2023

As expected, Governor Walz signed the bill legalizing adult-use marijuana in the State of Minnesota. The most immediate impact of the new law is that adults 21 years old and over will be allowed to use marijuana recreationally, and to possess up to two ounces of marijuana in a public place, beginning on August 1.

Further, unlike some states that have legalized recreational cannabis, Minnesota is not looking to bludgeon the cannabis industry with an overly burdensome tax rate. Instead, cannabis sales will have a gross receipt tax of 10%, which will be applied in addition to the state’s standard 6.875% sales tax. That pales in comparison to some states, which have tax rates as high as 37.5%.

As for the recreational growing and retail licensing, that will be determined over the next several months by the newly created Office of Cannabis Management and municipal governments. Notably, municipalities cannot ban cannabis establishments, but they can limit the number of licensed establishments they will permit inside their borders, and they can restrict where cannabis establishments can operate through zoning laws. In other words, city councils and zoning commissions are going to be busy for the next few months as they try to determine what is best for their municipalities and constituents. And those looking to operate in Minnesota will need to get to work at the local level to secure not only locations but also any kind of special zoning permits that may be required to operate at those locations.

Our cannabis team is excited about Minnesota’s opportunity for both existing operators and those looking to break into the cannabis industry. We are following Minnesota closely and are prepared to assist our clients in obtaining new licenses in the Land of 10,000 Lakes. Be sure to continue to follow our blog for updates and please reach out to the author (David Standa, [email protected]) to discuss opportunities in Minnesota.

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Minnesota Officially Becomes 23rd State to Legalize Recreational Cannabis

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