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CALIFORNIA LICENSING FEES

State and Local licensing fees can amounts to hundreds of thousands of dollars. You have the weigh the cost of entry, the competitive market and the probability of success before you pull the trigger. Our business Consulting Service and financial models can help you and your investors make an informed decision. 
INDOOR CULTIVATION PROJECTION MODEL USING EXCEL

The State of California released Emergency Regulations on November 21, 2017 with significantly increased licensing fees.   

  1. Cultivation Fees
    The annual fees range from $1,205 to $77,905. See the charts in the sections below. Fees for cultivating indoors are multiple times more expensive that pure outdoor cultivation. California is definitely hitting the indoor growers using energy to power the facilities where it hurts (your wallet).
  2. Manufacturer/Lab Fees
    For Manufacturers the annual fees range from $2,000 to $75,000. Fees for a volatile substances is more than non-volatile. For Testing Laboratories the annual fees range from $2,000 to $90,000.
  3. Distributor Fees
    The annual fees range from $1,200 to $125,000. There is reduced annual fee for Distributor Transport Only. This is another tax on the Cultivators. The State knows a cultivator desires to transport their product so they effectively charge an extra fee to have that right.
  4. Retailers
    The annual fees range from $4,000 to $72,000 per retail location. It is anticipated most commercial retail operations will have sales of $1.5 million to $4.5 million and require an annual fee of $36,000. Double that if you intend to sell into both the Medicinal and Adult Use Market.
  5. Microbusiness Fees
    The State decided to hammer the Microbusiness category. The low threshold of $4.5 million in anticipated revenue results in an annual license fee of $125,000. It does not stop there. If you want to do both "Medicinal" and "Adult Use" and therefore require a "M" and "A" license it will cost you $250,000.
  6. "M" and "A" Licenses
    You have to apply for two licenses if you intend to operate in both the "Medicinal" and "Adult Use" markets. Per the Environmental Impact Report released by The CDFA only 650,000 pounds was consumed in California last year through the dispensaries (M). The market is therefore relatively small.

​​CALIFORNIA BUREAU OF CANNABIS CONTROL LICENSING FEES

​​The California Bureau of Cannabis Control for all practical purposes oversees and licenses "indoor non-cultivation activities" encompassing Distribution, Testing, Dispensaries, Delivery Service, Retail, Events and Microbusiness. The Annual License Fee is based on the expected dollar value of transactions the Licensee expects to have. 

​​CALIFORNIA DEPARTMENT OF FOOD AND AGRICULTURE LICENSING FEES

​​The California Department of Food and Agriculture oversees and licenses "cannabis cultivation activities" encompassing Indoor, Mixed Light, Greenhouses and Outdoor cultivation. 

​​CALIFORNIA DEPARTMENT OF PUBLIC HEALTH MANUFACTUER LICENSE FEES

​​The California Department of Public Heath oversees and licenses Manufacturing entities.