The legalization of cannabis in a number of states has led to a booming U.S. marijuana industry. According to the National Conference of State Legislatures, 41 states and the District of Columbia have legalized medical marijuana for medical use, and 24 states and the District of Columbia allow the recreational use of marijuana.
Local city governments can still ban commercial cannabis-related activities, even if the state has legalized them.
In this article, we explore what makes business licensing for a marijuana dispensary or other business different based on medical vs. recreational requirements.
What is the difference between medical and recreational marijuana?
There is no difference between the medical and recreational cannabis in botanical terms. Scientists have found that the THC concentration is similar for both the marijuana plant and the products used to treat medical conditions or those used for recreational purposes. The main difference between medical and recreational marijuana is how they are sold.
For example, in general, to purchase medical marijuana through a state’s medical program, a person must have authorization from a healthcare provider and the state’s approval. With recreational marijuana in qualifying states, any person over the age of 21 can make the purchase.
Many states exempt medical cannabis purchases by qualified patients from sales and use tax while they do tax sales of recreational marijuana products.