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How much can our Township charge for adult-use license types, such as a retailer or microbusiness license?

Section 6.4 of Michigan Regulation and Taxation of Marihuana Act (“MRTMA”) states “[a] municipality may charge an annual fee of not more than $5,000 to defray application, administrative, and enforcement costs associated with the operation of the marihuana establishment in the municipality.” Many municipalities apply this section of the MRTMA to the application and review process associated with the issuance of a local permit authorizing adult-use license types to operate within the jurisdiction. The statutory language authorizes the fee for an “establishment.” Thus, many municipalities calculate a reasonable fee based on a per license review and issuance (i.e., the fee would be doubled for an applicant seeking a grower and a processor, even if collocated, or similarly for an applicant stacking two grow licenses). Ultimately, municipalities want to ensure that the amount of the fee reimburses the Township for the costs associated with the licensed operation.

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