Missouri has become the 33rd state in the United States to legalize medical cannabis. Medical cannabis sales in Missouri have crossed $200 million since its legalization in October 2020. Let’s check the detailed explanation of How To Open A Dispensary In Missouri.
The rollout of dispensaries has been slow in the state due to the complex and stringent regulations. Such as:
- The medical cannabis to be sold in Missouri must be grown in the state as well,
- Dispensaries will have to pay taxes on the full amount of sales and not just the profits of sales.
- Additional 4% sales tax on all medical cannabis products purchased in Missouri.
The medical cannabis amendment was passed in 2018, and the state has issued 192 dispensary licenses to date. Only 142 dispensaries have been able to set the shop up in the state.
Missouri residents who meet the following qualifying conditions can apply for a medical cannabis card:
- Patients suffering from cancer, epilepsy, severe migraine, or glaucoma are unresponsive to other treatments.
- Chronic medical conditions.
- Psychiatric medical conditions.
Unlike other eligible medical conditions, obtaining a medical marijuana card for mental health purposes necessitates an extra step. Patients must first be referred by their primary care physician, and then by a psychiatrist who has approved the use of medical cannabis for mental health concerns.
Interestingly, the Missouri state government transfers revenues to the Missouri Veterans Commission after expenses are paid. Till 2021, $2.1 million has been transferred over to veterans and the government is hoping to transfer bigger amounts with every passing year.
Let us walk through the cannabis laws, license types and how to acquire them, tax rates, and much more in this blog post.
Can I open a dispensary in Missouri right now?
The state government is accepting applications from business owners. Although municipalities across the state are receiving applications to open a dispensary in Missouri, but businesses must only sell cannabis grown in the state.
According to the Missouri Department of Health and Senior Services, 348 medical marijuana facilities have been allowed to operate in the state, including 192 dispensaries, 86 manufacturing facilities, 10 testing lab facilities, and 60 cultivation facilities.
How Much Can You Buy?
Qualifying patients or their caregivers may purchase up to four ounces of dried, unprocessed marijuana, or its equivalent, in 30-days. If a patient requires more than this amount, two independent physician certifications stating the amount needed must be submitted with the patient application.
Current Cannabis Laws In Missouri
- Individuals need valid medical cards to purchase cannabis from dispensaries.
- Qualifying patients or their caregivers can purchase up to 4 ounces of dried, unprocessed cannabis from a dispensary, in a 30-day period.
- Medical cannabis is legal only for registered patients.
- Qualifying patients or their caregivers can cultivate up to 18 marijuana plants of which only 6 must be mature. The grower must possess a legal cultivation card issued by the Missouri DHSS.
- The qualified patient must be above 18 years of age.
- Dispensaries must sell marijuana and related products grown and manufactured in Missouri.
How Much Cannabis Can an Adult in Missouri Possess?
- Qualified patients can possess up to four ounces of dried or unprocessed cannabis.
- Adults with a medical card can purchase and grow up to eighteen plants at one time, but only six plants must be mature.
Tax Rates in Missouri
Medical cannabis product sales at dispensaries are taxed at 4% under Missouri’s medicinal marijuana amendment to the state constitution.
Current Cannabis Market in Missouri
According to the Missouri state health department records retail dispensaries have racked up $186.1 million in sales since lawful transactions began in mid-October 2020.
Cannabis Dispensary Start-Up Costs in Missouri
The cost of starting a medicinal dispensary in Missouri is estimated to be between $85,000 and $150,000. This cost includes license, land acquisition, retail security, a compliant POS, wholesale product procurement, staff, taxes, and other dispensary-specific expenditures.
Types of Cannabis Licenses in Missouri
Medical Marijuana Cultivation Facility License
Medical cannabis facility business licenses are valid for a period of one year, beginning January 1 and ending December 31.
Cost of the License: $2,000.00 processing fee as well as a $17 charge for a Missouri criminal background check. An additional fee will be levied if an out-of-state background check is needed.
Medical Marijuana Dispensary Facility License
- The number of medical marijuana dispensary facility business licenses awarded will be limited to one for every 20,000 people in the state.
- After the Missouri Department of Health and Senior Services has granted its license for the medical cannabis dispensary, applications will be accepted for a period of twenty-one days. After the initial application filing period, all applications will be considered within 60 days. Applications submitted after the application filing time has ended will be evaluated depending on the availability of licenses.
Medical Marijuana-Infused Products Manufacturing Facility License
Manufacturing facilities whose applications are approved will be notified via email. Individuals who have created the User Account in the Medical Marijuana Registry Portal, the person listed as the Primary Contact in the application, and at least one other person listed in the application will receive notifications.
Application denial notices will be sent out as well. The person who created the User Account in the Medical Marijuana Registry Portal will get denial notices.
The 86 facilities that will receive their licenses will be the highest-scoring manufacturing facilities that meet all of the program’s eligibility standards.
Medical Marijuana Testing Facility License
Testing facilities are in charge of validating THC levels in cannabis products as well as screening for foreign matter and dangerous bacteria.
Within 150 days of the applicant’s complete submission, the department will approve or deny all complete applications received during the application time period. If the application status changes, the registered user will be notified through email.
How to Get a License to Open a Dispensary in Missouri
The Missouri state government is accepting applications for licenses for dispensaries, cultivation facilities, manufacturing facilities, and testing facilities. Be ready with all relevant documents and make no errors while filling out the application.
Here’s what we know about how to open a dispensary in Missouri so far:
- The applicant must have lived in Missouri for at least one year.
- Applicants must undergo an annual criminal history background check to acquire or renew a cannabis license.
- Organize all corporate documents such as articles of incorporation, agreements, certificates of good standing, and others.
- A good business plan.
Missouri Dispensary Fees
Type of Fee | Amount |
Non-refundable Application Fee | $3,000 |
Annual License Renewal Fee | $10,373.22 |
Requirements for Missouri Dispensary Licenses
Here are some of the major requirements for obtaining a dispensary license in Missouri:
- Criminal background check of the applicant and at least 3 manager-level employees
- A solid business plan
- A site security plan for staff and the community the dispensary serves.
- Economic Impact Report: applicants must showcase how their business will have a positive impact on the community i.e., jobs.
- Previous experience in healthcare.
- The applicant must have lived in Missouri for at least one year
Missouri Cannabis Laws
- In November 2022, Missouri voters approved Amendment 3, which legalized the recreational use of marijuana.
- As of December 2022, adults 21 and older can legally possess cannabis, and legal sales of recreational marijuana began on February 3, 2023.
- Medical marijuana is taxed at a 4% state rate, in addition to sales taxes.
- Adult-use cannabis is taxed at a 6% state rate, plus sales taxes.
- Adults over the age of 21 may purchase up to 3 ounces of cannabis at a time, while medical marijuana patients can buy up to 6 ounces within a 30-day period.
- The Department of Health and Senior Services (DHSS) is responsible for overseeing Missouri’s medical marijuana regulations.
- Minors can obtain a medical marijuana license through a primary caregiver with the permission of a parent or legal guardian, who will act as the caregiver.
- Medical marijuana patients are permitted to buy a maximum of 4 ounces of cannabis flower, or its equivalent, every 30 days.
- Dispensaries must adopt state-approved seed-to-sale tracking software to manage inventory and report sales to Metrc.
- If you currently operate a medical facility and wish to serve both medical and adult-use markets, you may request a conversion to a comprehensive facility license.
- Licensees are responsible for ensuring all employees are adequately trained.
- Each dispensary is required to appoint an agent responsible for overseeing inventory control systems and procedures.
When transitioning from a medical license to a comprehensive facility license, dispensaries must note the following changes:
- The adult-use purchase limit is 3 ounces per transaction.
- Adult-use purchases will be taxed at a 6% rate, in addition to local taxes.
- Recreational licenses will be structured similarly to medical licenses.
- Both medical and adult-use customers will be able to buy from the same inventory.
- A valid government-issued photo ID will be required for adult-use cannabis purchases.
- Employees who are under 21 can continue working at any licensed cannabis facility, but after February 3, 2023, all new agents must be 21 or older.
Key rules for dispensary applications in Missouri include:
- Conversion for Existing Medical Facilities – If you operate a medical facility and wish to expand into both medical and adult-use markets, you may request a conversion to a comprehensive facility license. This process involves submitting an online application with a market service and community participation plan, along with a $2,000 nonrefundable fee. The department will notify you of their decision within 60 days; if there is no response within that period, the application will be automatically approved.
- Application Process for New Dispensaries – The department will announce application windows on its website. Applications must be submitted electronically through the designated online system, including all required documentation and a nonrefundable application fee (which will be listed on the website). Microbusiness applicants who are not selected in the lottery can request a refund of their fee within a specified timeframe.
- Application Requirements – Dispensary applications must include an operational plan, with details about the dispensary’s address, legal names, ownership structure, and a visual diagram of ownership. Dispensaries must also confirm that they are not under common control with testing facilities. Applicants must submit plans for efficiently serving both medical and adult-use markets and detail efforts to involve communities historically impacted by marijuana prohibition.
- Approval, Denial, and Renewal Procedures – A lottery system may be used to select dispensaries if the number of applicants exceeds available licenses. Applications will be assessed for completeness and adherence to state laws. Licenses are valid for three years, and renewal requests must be submitted online 30 to 90 days before the expiration date, along with the applicable renewal fee, as posted on the website.
- Operational Compliance – Dispensaries are required to pass a commencement inspection prior to opening. This ensures that the facility meets all state regulations regarding safety, security, and operational standards.
- Microbusiness Application Requirements – Those seeking a microbusiness dispensary license must fulfill additional requirements, including proving financial eligibility, residing in underserved areas, or having been impacted by marijuana-related legal issues. These criteria are intended to encourage small business participation in the cannabis industry.
How do I get a license to open a dispensary in Missouri?
To start, you’ll need to decide which type of dispensary you wish to open: medical, comprehensive, or microbusiness.
The application period for a microbusiness dispensary license has already passed. Applicants were able to submit applications from July 27, 2023, to August 10, 2023, via the online registry portal. Application forms and instructions were provided for applicants.
For medical and comprehensive licenses, Missouri has temporarily suspended accepting new applications. Existing medical license holders can apply to convert their licenses to comprehensive licenses, which authorize both medical and recreational marijuana sales. The department will give at least six months’ notice before accepting new applications. This section will be updated as new information becomes available.
Medical Facility Conversion
As of December 8, 2022, existing medical cultivation, manufacturing, and dispensary facilities can begin requesting to convert to comprehensive facility licenses.
Facilities seeking conversion must meet these requirements:
- A strategy to increase participation in the regulated cannabis industry by individuals from communities disproportionately impacted by marijuana prohibition.
- A plan to serve both medical and adult-use markets while maintaining adequate supplies and competitive pricing for medical patients.
- Payment of a $2,000 conversion fee.
- Conversion requests must be submitted via the department’s approved online system.
Recreational Use Legalization
On August 27, 2021, Legal Missouri 22 put forward an initiative to legalize recreational marijuana. The campaign for Legal Missouri 2022 officially launched on December 1, 2021. With the approval of Missouri voters on November 8, 2022, recreational marijuana was legalized.
The Legal Missouri 2022 program seeks to achieve the following outcomes:
- Individuals over 21 can purchase a maximum of three ounces of cannabis.
- A registration card permits the cultivation of six flowering plants, six immature plants, and six clones.
- Cannabis companies will be regulated and licensed by the Department of Health and Senior Services.
- At least 144 microbusiness licenses will be granted through a lottery, with preference given to low-income applicants and those affected by drug prohibition.
- Existing medical marijuana retailers will have the opportunity to serve adult customers first, provided they hold dual licenses.
- License selection for each business type will be done via random lottery.
How to Apply for a Missouri Recreational Dispensary License
To open a dispensary in Missouri, you must secure a license to legally possess, sell, or deliver cannabis. There are two types of dispensary licenses available:
- Comprehensive License – This license authorizes a marijuana facility to operate in both the medical and adult-use cannabis markets. Existing medical license holders can apply to transition to a comprehensive license.
- Microbusiness License – This license allows a facility to operate in both markets, but it is specifically for businesses where the majority owners meet one of the following criteria: net worth under $250,000, veterans with a service-connected disability, individuals with a history of non-violent marijuana-related offenses for at least one year, or those living in a disadvantaged area. Applicants do not need to be Missouri residents to apply for a microbusiness dispensary license.
Cannabis Dispensary Security Considerations For Missouri Dispensaries
License holders for medical and cannabis facilities must ensure the security of both the marijuana products and the premises by implementing dispensary security solutions in Missouri and maintaining necessary security equipment, as detailed below:
- A set of devices or a combination of systems to detect unauthorized entry, which may involve a signal system linked to a radio frequency method, such as cellular or private radio signals, or other mechanical or electronic detection devices.
- Exterior lighting, required except for outdoor cultivation areas, to enable surveillance, ensuring coverage of all building exteriors and the facility’s perimeter.
- The electronic video surveillance system must include cameras that provide at least 1920 x 1080p resolution (or equivalent) and record at a minimum rate of 15 frames per second. The system must allow continuous monitoring and be able to identify people and activities across all lighting conditions. Remote access to these recordings must be available in real-time to the department or law enforcement. Motion detection is not allowed for continuous monitoring in areas where marijuana products are or will be stored. Remote access must be achieved through HTTP or an alternative method approved by the department.
Video cameras must cover the following areas:
- All entry and exit points of the facility, including windows.
- Any areas within the facility or on the premises where marijuana is or will be stored or handled.
- Every point-of-sale location.
- All vaults or safes where marijuana products are kept.
- Any area on the premises, including offsite warehouses and transport vehicles, where the seed-to-sale system or state-wide track and trace system is accessed.
- The entire perimeter of the facility, including at least 20 feet around the perimeter of any outdoor cultivation area.
- All marijuana products, from at least two angles, in locations where they are grown, cultivated, manufactured, sampled for testing, tested, stored, weighed, packaged, processed for sale, sold or distributed, rendered unusable, disposed of, or loaded for transport.
What Else Do You Need to Open a Dispensary in Missouri?
Step 1
Understand Cannabis Laws In Missouri
Each state’s cannabis regulations are unique, and they may differ from one area to the next in Missouri. So, when you apply for a marijuana license in Missouri, be sure you understand the laws and regulations so you can stay compliant and enhance your chances of getting your license approved.
Step 2
Create A Solid and Scalable Business Plan
A solid business plan can become your guide to success, so create a good one. It must include the following points to help you to establish your business and stay ahead of your competitors in the cannabis marketplace:
Competitive analysis
It’s important to present an in-depth analysis of your competitors in addition to explaining the characteristics that set you apart from the competition.
This research should focus on your direct and indirect competitors’ operations, financials, history, leadership, and distribution methods. It should investigate the competitors’ value propositions and describe how you can compete with or exploit their strengths and flaws.
Sales Strategy
This part should address how you want to sell the cannabis goods you are purchasing or manufacturing, as well as how you expect to carry out the services you aim to provide. Specificity is required in your sales plan. Calculate how many budtenders you’ll need to hire, as well as how you’ll find them and get them on board. Don’t forget to include your sales goals as well.
Marketing Plan
This is the section where you explain how you plan to get your cannabis products and services in front of your target clients. Make a list of the measures you’ll take to promote your products, as well as the budget you’ll need to put your plans into action.
Financial Plan
Ideas are amazing, but how can you turn them into reality and keep your business afloat? Making a financial plan will allow you to talk about money, think about start-up costs, financial projections, fundraising, and investor pitches, and handle your financial issues.
You’ll need to break down how much your start-up will cost, including everything from technology to leasing, and compare it to your financial estimates.
Operations Plan
The team and management plan component of a company plan is inextricably linked to the operations plan. An operations plan is the engine that drives the business machine. Nothing else in your business strategy will be done unless you have an operations plan.
This part should be jam-packed with details and instructions to guide individuals through the day-to-day activities of the company. To carry out the strategies and duties required to run the firm, the person described in the team and management plan portion of a business plan should refer to the operations plan.
When developing a business plan, integrate the operations and management plans into a single section labeled “Operations and Management Plan.” Creating an organization chart with each business member’s title, functions, responsibilities, and supervisory position is the first step in writing the section.
Timelines and Milestones
Establish a realistic operational timeline as well as the objectives you intend to achieve. These milestones can assist you in tracking the progress of your cannabis business.
Don’t Hesitate To Make Amendments If Required
A strong blueprint should be the foundation of a good business plan. It does not, however, have to be the final word. It’s especially important since, at the end of the day, it’s a plan – and plans can sometimes change.
Along with addressing any challenges that arise, be prepared to amend a business plan anytime the opportunity arises as you discover new prospects and ways to improve operations.
Step 3
Staffing Your Dispensary in Missouri
You need dedicated and well-trained staff to run a successful business. The size of your shop will determine how many employees you need, but if you have a few budtenders, a supervisor, and a store manager, you can estimate your annual payroll to be around $250,000 if you pay the industry standard rates. Security staff will be an additional expense.
Step 4
Choose Your Location With Care
The majority of state legislators oppose cannabis dispensaries being located near schools, churches, playgrounds, and other public areas. To ensure that your cannabis application is not rejected on these grounds, check with your local jurisdiction and choose your location carefully to open a dispensary in missouri.
Step 5
Tech Integration with Leading Technology Partner
A successful cannabis business rests on a solid IT infrastructure and security system. As a result, once your license has been approved and you are ready to open shop, you must contact Cure8 IT experts. We can plan and design your store from the ground up. From Wi-Fi to tablets, scanners, printers, security cameras, and more, we have everything you need to complete your store’s IT infrastructure.
Step 6
How to Fund Your Missouri Cannabis Dispensary
A cannabis business typically faces expenses in the following areas:
- Real estate – This includes initial costs as well as ongoing rent or mortgage payments. It would help if you also accounted for any renovation or construction expenses at the start.
- Licensing/application fees – These are the costs for obtaining a dispensary license in Missouri, along with annual and renewal fees. Retailers pay about $7,600 per year, and $18,600 every third year.
- Operational costs – These are the regular expenses for running your business, such as utilities, professional fees, marketing, and other daily expenses.
- Technology (hardware, software, dispensary security plan) – Many of these are subscription-based services that may have significant initial setup costs in addition to recurring monthly or annual fees.
- Staffing costs – The expenses associated with hiring and compensating employees, including wages, benefits, taxes, and other related costs.
- Inventory costs – This covers the cost of acquiring cannabis products. You’ll need enough stock for both your opening and ongoing sales.
How Can Cure8 Help
Cure8 assists cannabis dispensary owners in Missouri by offering a complete suite of services to ensure compliance with state laws and security best practices. The platform provides IT management tools for integrating POS and inventory systems that meet Missouri’s seed-to-sale tracking requirements. Cure8 also helps develop robust security plans, including surveillance systems, alarm systems, and access controls tailored to the needs of each dispensary. With expert guidance on cannabis dispensary security plans, compliance consulting, and dispensary security solutions in Missouri, Cure8 ensures dispensaries remain secure, compliant, and prepared for regulatory inspections.