Dispensaries Open by State 2023

Thirty-three states and the District of Columbia have marijuana dispensaries. The only states without dispensaries are Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota, Tennessee, Texas, West Virginia, Wisconsin, and Wyoming.

Of the states with dispensaries, eleven—California, Colorado, Illinois, Maryland, Michigan, Nevada, Oklahoma, Oregon, Pennsylvania, Utah, and Washington— have drive-thru capabilities for their dispensaries. Each state has its own history, regulations, and rules when it comes to cannabis.

Oregon

Although the state of California is usually the first one that comes to mind, Oregon is a trailblazer for many new industries that cater to its residents and tourists. For example, Oregon has had headwinds regarding microbrews and the overall coffee industry and has expanded this revolutionary innovation into the field of cannabis. Unlike California, its southern neighbor, Oregon has a relatively cheap environment and is an extremely attractive place to start or to migrate your dispensary. The application process necessary for opening a cannabis company is much less competitive - and you don't even need to be a resident of the state.

The legal environment supports cannabis companies greatly, especially small businesses, and the tax climate is both favorable and enticing relative to the overall demand to consume cannabis and cannabis-related products in the state. Oregon has the lowest application fee of any state at just $250. The cost of the product is also very affordable, as it has one of the lowest acquisition costs in the country at 6.65 per gram, and companies do not need to pay excise tax on their supply.

Colorado

While not as attractive as Oregon, Colorado is also a pioneer in the cannabis industry. Although the great migration was conducted when Colorado initially legalized cannabis, market conditions within the state are still extremely favorable and attractive. Due to the ever-increasing demand, the state also has many programs and resources available for those who are looking to open a dispensary or to migrate their cannabis-related business within state lines. Your dispensary will also not be subject to scrutiny when it comes to tax obligations.

Being one of the first states that legalized cannabis and related consumable products, the environment is conducive to your dispensary. Even though the cost per gram has risen to $7.14, many businesses choose to open their dispensaries in Colorado as they know it is a safe bet that the political climate will support or enact new laws that do not interfere with the cost of acquisition or any related business costs that could ultimately decrease profits or overall leave businesses without the ability to serve their clients.

Michigan

Michigan is an interesting choice, but one that deserves its spot on the list. Many do not wish to migrate to Michigan for their dispensary business because of the barriers to entry that need to be considered. To begin, the application fee for starting a cannabis company within Michigan is much higher than the national average, sitting at $6,000. Moreover, it is much more difficult to get approved and the tax rate on cannabis within the state is 20%.

With all these factors, it is difficult to see why Michigan should be placed on the list, much less even be considered. Michigan legalized cannabis in 2018 and has seen a sharp increase in cannabis products. There are currently over 200 dispensaries. For businesses that are sure of their product and business model, overcoming the barriers to entry could prove to be extremely profitable as you will be met with much less competition, but much more demand and the ability to raise prices.