Massachusetts To Begin Adult Use Sales On Tuesday

massachusetts

Adult-use cannabis sales began in Massachusetts on Tuesday morning making it the seventh state to legalize and establish an adult-use market. Two dispensaries are set to open at 8 am to service customers.

Cultivate Holdings, LLC, which has a retail shop in Leicester and New England Treatment Access (NETA) LLC in Northampton were given approval by The Massachusetts Cannabis Control Commission. Adults 21 and older with a valid ID will be able to purchase up to one ounce of marijuana from licensed marijuana retail stores, of which no more than five grams can be in concentrate form. It will remain illegal to consume marijuana in public.

“Marijuana prohibition is officially coming to an end in the Bay State,” said Marijuana Policy Project Deputy Director Matthew Schweich, who oversaw the successful Question 4 campaign in 2016. “It will not be missed. Voters in Massachusetts wanted a more sensible policy, new tax revenue, and safer communities, and that is what they are going to get.

The Boston Globe reported that the first customer at Cultivate will be Iraq veteran and medical marijuana advocate Stephen Mandile. He will buy a quarter-ounce of pot and edibles once Cultivate opens at 8 a.m. Over at NETA, Northampton Mayor David Narkewicz — an Air Force veteran — will purchase an edible.

According to the Marijuana Policy Project, marijuana possession has been legal for adults 21 and older since Question 4 took effect on December 15, 2016. The initiative was approved by 53.7 percent of voters on November 8, 2016, and legislation to implement the initiative was signed into law by Gov. Charlie Baker on July 28, 2017.

“Finally, adults will be able to purchase marijuana safely and legally in regulated, taxpaying businesses instead of resorting to the underground market,” Schweich said. “Adults will simply stop at a licensed store, show their ID, pay, and be on their way. It won’t be long before the novelty wears off and it feels just like buying alcohol from a liquor store.”

MPP noted that regulated adult sales began in Colorado in January 2014; Washington in July 2014; Oregon in October 2015; Alaska in October 2016; Nevada in July 2017; and California in January 2018. In Maine, they are expected to begin in fall 2019. In Michigan, where the law was just adopted during the midterm election earlier this month, adult sales are expected to begin in 2020.

“Implementation took longer than expected, but the system is now up and running, and it appears to be on the right track,” Schweich said. “We applaud the many state and local officials who have taken part in the historic transition from prohibition to a regulated model. This is a living system that will grow and evolve over time, similarly to what we’ve seen with alcohol, and it can set an example for other states in the region and around the country. Massachusetts is firmly ahead of the curve on cannabis.”

Marijuana products sold for adult use will be subject to a 6.25 percent state sales tax and a 10.75 percent state excise tax, and municipal officials have the option of levying additional local taxes of up to 3 percent. A study released in June by the Department of Public Health estimated adult marijuana sales would generate more than $200 million for the state and up to $3 million for local governments in the first two years alone.

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.


One comment

  • Brian

    November 20, 2018 at 8:27 am

    It’s almost seems the CCC wants to insure a robust black market in Massachusetts for years to come. The legislature gave them an additional 6 months to begin sales (which obviously didn’t happen) then it too nearly until December to open two shops..two shops in the whole state.
    Most regular people will likely plan on making some type of small purchase just to say that they did but plan on staying with “their guy” for the foreseeable future because the dispensaries product + 20% tax is too pricey. Seriously $65 1/8ths?

    Reply

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