29 Jul Massachusetts Approves Cannabis Adult Use Legislation

Eight months after Massachusetts voters approved legal adult use of cannabis, reluctant Republican Gov. Charlie Barker signed legislation to start a year long phase-in of permitting adults to buy and use cannabis. The expectation is that the first stores will be open by next July.

The legislation imposes a 20% tax on adult use cannabis, of which 3% will go to local municipalities. Also, in a unique feature, local governments will have the option to prohibit cannabis stores in their area, unless voters approved the measure in their municipality, in which case voter approval would be required to ban stores. Estimates are that as much as $300 million in taxes might be collected in the state just in the first two years after implementation.

A Cannabis Control Commission has to be appointed by August 1 and the commission will issue regulations by March. As the most populous Eastern state to approve adult use, will Boston and other Massachusetts destinations such as Martha’s Vineyard and Cape Cod see a surge in “cannabis tourism” as Colorado has? Only time will tell.