Massachusetts cannabis business compliance guide

In this guide, we'll cover:
Legally reviewed by:

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Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.

Market Type

In Massachusetts, cannabis is regulated by the Cannabis Control Commission (CCC). Medical and adult-use cannabis are allowed. Massachusetts also allows out-of-state medical patients to purchase medical cannabis as long as they have a valid, unexpired medical marijuana registry card or its equivalent.

Metrc and InventoryΒ 

Massachusetts uses Metrc as their seed-to-sale state traceability system and uses the Massachusetts Virtual Gateway (MA CIP) to track medical patient limits. In Massachusetts, all inventory actions must be reported to the state system in real time. Additionally, medical and adult-use cannabis inventory must be separated/partitioned from each other.

Purchase Limits

Adult-use

A retailer may not knowingly sell to a consumer in a single day more than:

  • One ounce marijuana flower;
  • 5 grams (5000 mg) active THC in concentrates (including tinctures); or
  • 500 mg active THC in edibles

Note: Topicals and ointments are not subject to a limitation on daily sales.

Medical

  • Patient limits are set as a 60-day supply, tracked in the state’s Virtual Gateway. Retailers are prohibited from selling more than a patients’ currently available allotment.

Taxes

Adult Use

State Sales Tax: 6.25%

State Excise Tax: 10.75%

Local Option Tax: up to 3%

Medical

None

Delivery

Retailers with delivery endorsements and marijuana couriers may transport cannabis to patients and consumers.Β 

Delivery Operations

Can only deliver to:

  • The municipality identified as the Marijuana Establishment License's place of business;
  • Any municipality which allows for retail within its borders whether or not one is operational; or
  • Any municipality which after receiving notice from the Commission, has notified the Commission that delivery may operate within its borders.
  • Pre-verification of age - Stores must either verify a person's age in person before delivery, or through a Commission-approved electronic means.
  • Maximum vehicle inventory value: $10,000

Things to Note

Consent required to capture consumer information.

A Marijuana Retailer may not record or retain any additional personal information from Consumer without the consumer's voluntary written permission.

The following exceptions are made for delivery orders:

  • The individual's name;
  • The individual's date of birth;
  • The individual's address;
  • The individual's primary telephone number; and
  • The individual's email address

Marketing Through Free or Discounted Products

Adult use retailers are prohibited from offering free or discounted cannabis as part of a marketing scheme or rewards program and they are prohibited from advertising promotional items, including but not limited to:

  • gifts,
  • giveaways,
  • discounts,
  • points-based reward systems,
  • customer loyalty programs,
  • coupons, and
  • "free" or "donated" Marijuana

Per the CCC’s FAQ, β€œMTCs may offer free or reduced Marijuana or Marijuana Products and may offer rewards programs, coupons, or other discounts of Marijuana or Marijuana Products to Registered Qualifying Patient.” Due to the ambiguity in the regulations, Dutchie recommends all operators clarify marketing and discounting rules with the CCC.

State Resources

The CCC compiles their rules and regulations here and have a list of FAQ here

Massachusetts

FAQs

How much does it cost to open a dispensary in New York?

How long does it take for applications to be reviewed?

How many licenses do we expect New York to issue?

Has New York identified what the application will look like?

How will the office evaluate applications?

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