While marijuana is legal for medical use in Oklahoma, it remains illegal for recreational use. Under state laws, possession is a misdemeanor punishable by a fine of up to $10,000 or incarceration for a year.
As a result, business owners are hesitant to enter the legal marijuana industry. That has led to a moratorium on new grower, processor and dispensary licenses this spring.
Medical Marijuana
Medical marijuana is legal in Oklahoma in accordance with State Question 788, approved by Oklahomans on June 26, 2018. Patients with a physician’s recommendation may use cannabis for qualifying medical conditions.
Those with a license may also purchase a variety of marijuana products from licensed dispensaries. These include mature plants, seedlings, edibles, flower and concentrates.
The Oklahoma Medical Marijuana Authority (OMMA) regulates the medical marijuana industry. It is responsible for licensing growers, processors, testing labs, transporters, and dispensaries.
Oklahoma’s medical market is one of the fastest-growing in the country. It is expected to generate nearly $8 billion in annual revenue by 2021, generating a significant amount of tax revenue for the state.
Recreational Marijuana
In Oklahoma, adults can legally possess up to an ounce of marijuana and grow up to six mature plants or six seedlings. However, consuming cannabis in public is still illegal.
As a result, the state has a large black market. The law also prohibits people from giving marijuana to other individuals without a license.
If you’re charged with possession of marijuana, you may be subject to jail time and a fine. Additionally, you can lose your driver’s license.
A criminal record can also affect your employment opportunities. Those with a past conviction on a marijuana-related crime can apply for alternative sentencing programs like drug court, which allows offenders to have their charges dropped and their records expunged if they meet certain criteria.
In addition to a 15% excise tax, recreational marijuana laws would allow people 21 and older to possess up to an ounce of cannabis and grow up to six mature plants or six seeds. It’s expected that revenue from the tax will go towards education and other state services.
Taxes
The state of Oklahoma taxes medical marijuana and recreational cannabis with a 7% excise tax on each sale, above the local sales tax. This revenue goes to the Oklahoma Medical Marijuana Authority and the state general revenue fund. Any excess funds are split up among public school programs that address substance abuse and improve student retention (75%) and drug addiction treatment programs (25%) as well as the Oklahoma State Department of Health.
However, many legal cannabis businesses struggle with taxable income. This is due to federal law which prohibits the deductibility of expenses for marijuana dispensaries.
It also limits the amount of deductions a business owner can claim, which can lead to tax bills that are more than the company’s profits. As a result, cannabis business owners often operate in the red.
Three bills are currently being considered in the Oklahoma Legislature to address this issue. They would allow a tax deduction on taxable income from the business expenses incurred in conducting licensed medical marijuana businesses activities, which may help some Oklahoma businesses.
Regulations
Oklahoma has a lot of unique regulations governing marijuana possession. This is particularly true for the state’s medical marijuana program, where licensed patients can buy cannabis from state-licensed dispensaries.
The state also has strict laws on cultivation. Those with a license may cultivate up to six mature plants and seedlings at home for medical use, but they must restrict the entry of others into their cultivation areas.
Those who sell or transport large quantities of marijuana risk serious charges. These include felony offenses that carry prison sentences.
If the sale or transportation occurred within 2,000 feet of a school, park or public housing project, penalties double.
Recently, the state enacted new rules that will make it easier for individuals to get marijuana charges reduced from felonies to misdemeanors. However, those with previous criminal convictions could still face jail time and a fine.
