Cannabis Business in Mississippi

Mississippi Medical Cannabis Program

The Mississippi Medical Cannabis Program (MMCP) is designed to ensure Mississippi residents have a safe way to access medical marijuana while also prioritizing public health and safety. The Mississippi State Department of Health (MSDH) is the primary agency that oversees the MMCP. The MSDH is responsible for licensing, regulating, and enforcing laws for various participants in the program:

• Patients and Caregivers
• Medical Practitioners
• Cannabis Cultivation, Processing and Testing Facilities
• Cannabis Transportation and Waste Disposal Services

The Mississippi Department of Revenue (MDOR) is responsible for licensing and regulating medical cannabis dispensaries. The MDOR also handles enforcement of the laws related to the sale and distribution of medical marijuana at these dispensaries.

Taxes

Two main taxes are associated with the sale of medical cannabis in Mississippi:

• 5% Excise Tax: This tax applies to cultivators on the initial sale or transfer of medical cannabis to a dispensary or a related business entity.
• 7% Sales Tax: Cardholders in Mississippi are charged this usual sales tax by dispensaries when completing a transaction.

Medical cannabis flower and trim have their fair market value determined by the MDOR every January 1 and July 1. This fair market value is used to calculate the excise tax when a cultivation facility sells or transfers product to a medical cannabis establishment that shares common ownership.

Licensing and Permits

Before starting a cannabis business, all businesses must register with the Mississippi Secretary of State's office. Applications for medical cannabis dispensaries are handled by the MDOR. The MDOR aims to issue licenses within 30 days of receiving a complete application. Securing applicable tax permits is a required step for dispensary applicants in the application process. To complete the application, dispensaries must have first received a sales tax permit ID from the MDOR, a process that can take up to three weeks.

CBD and Hemp in Mississippi

Legality

Hemp-derived CBD products are legal to buy, use, and sell in Mississippi, thanks to the Mississippi Hemp Cultivation Act (SB 2725). However, cannabis-derived CBD is illegal unless recommended by a certified doctor. Although there are no possession limits specified in the law, retailers typically only sell to those 18 years or older.

Regulation

The Mississippi Department of Agriculture and Commerce (MDAC) initially regulated hemp cultivation, but due to lack of funding, prospective growers must obtain licenses from the United States Department of Agriculture. Currently, no government agency in Mississippi issues hemp processing licenses. Individuals or entities interested in selling hemp-derived CBD do not need licenses, but those producing hemp must obtain licenses through the USDA's Domestic Hemp Production Program.

Medical Use

Physicians in Mississippi can recommend CBD oil and other CBD products to patients with qualifying medical conditions. These conditions include cancer, epilepsy, Parkinson's disease, chronic pain, and terminal illnesses.

While not directly stated in the sources, if someone is considering buying or selling a cannabis business or a cannabis business for sale in Mississippi, they should consult with legal counsel to ensure they are in compliance with all applicable state and federal regulations.