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Cannabis Laws in Vermont

Vermont just joined the states that regulate the adult-use of cannabis with the passing of new  marijuana laws. Although the possession and use of recreational marijuana was legalized in 2018, the lawmakers at the moment failed to pass any framework that regulated the sale and production of adult use cannabis.

Finally this October 7, the governor of Vermont approved the S54 law l to regulate and tax cannabis sales to become law, without his signature

If you are interested in getting your cannabis business started in Vermont here is all you need to know about this new rules.

S54 Law in Vermont

The S54 law sets a regulatory system for the production and sale of cannabis and cannabis products in Vermont.

The bill creates the Cannabis Control Board as the independent regulatory authority for the commercial cannabis market. The Cannabis Control Board is responsible for adopting regulations and administering a licensing program, including compliance and enforcement, for cannabis establishments.

The law changes “Marijuana” to “Cannabis” 

vermont cannabis laws

Cannabis laws in vermont

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Details of the S54 you should know

Adults 21 and older may:

  • Possess up to 1 ounce of cannabis or five grams of hashish;
  • Cultivate up to 2 mature and four immature plants in a secure location ; and
  • Possess the cannabis produced by the plants at the same secure location

 Licenses available in Vermont

  • Cultivator: engage in commercial cultivation of cannabis
  • Product manufacturer: manufacture, prepare, and package cannabis products and to sell cannabis products to licensed retailer, wholesaler,or another product manufacturer
  • Wholesaler: buys cannabis from cultivators and process, transport, and sell cannabis to licensed product manufacturers and retailers
  • Retailer: sell cannabis products to consumers for off-site consumption
  • and testing laboratory: test cannabis for cultivators, product manufacturers,wholesalers,and retailers.

Applicants are limited to obtaining a maximum of one type of each license. Applicants are not required to be Vermont residents, but residency will be considered in prioritizing issuance of licenses.

Rules concerning any cannabis establishment include:

Cannabis laws in vermont-3

  • The form and content of license and renewal applications;
  • Qualifications for licensure that are directly and demonstrably related to the operation of a cannabis establishment, include:
  • Requirement for fingerprint-based  criminal history record check and regulatory record check:
  • Oversight requirements;
  • Inspection requirements;
  • Records to be kept by licensees and  the required availability of the records;
  • Employment and training requirements;
  • Security requirements, including lighting, physical security, video, and alarm requirements;
  • Restrictions on advertising, marketing, and signage;
  • Health and safety requirements;

Applicants are limited to obtaining a maximum of one type of each license. Applicants are not required to be Vermont residents, but residency will be considered in prioritizing issuance of licenses.

Taxes in Vermont

The S54 sets a 14% cannabis excise tax, plus Vermont’s 6% sales tax with no local option tax.

Can Localities Prohibit Cannabis Production and Sales in Vermont

Municipalities have authority to require municipal permits for cannabis establishments and may prohibit the operation of a cannabis establishment or a specific type of cannabis establishment

On January 1, 2021, new statutes, as well as rules adopted by the Board, governing the Medical Cannabis Registry and Medical Cannabis Dispensaries take effect,  and those programs transfer from the Department Public Safety to the Board.

Don’t miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them.

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Picture of Thomas Howard

Thomas Howard

A seasoned commercial lawyer and the Managing Director of Collateral Base. With over 15 years of experience, Tom specializes in the cannabis industry, helping businesses navigate complex regulations, secure licenses, and obtain capital. He has successfully assisted clients in multiple states and is a Certified Ganjier. Tom also runs the popular YouTube channel "Cannabis Legalization News," providing insights and updates on cannabis laws and industry trends.
Picture of Thomas Howard

Thomas Howard

A seasoned commercial lawyer and the Managing Director of Collateral Base. With over 15 years of experience, Tom specializes in the cannabis industry, helping businesses navigate complex regulations, secure licenses, and obtain capital. He has successfully assisted clients in multiple states and is a Certified Ganjier. Tom also runs the popular YouTube channel "Cannabis Legalization News," providing insights and updates on cannabis laws and industry trends.

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