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General Authorities <br />Local governments in Minnesota have various means of oversight over the cannabis market, <br />as provided by the adult-use cannabis law. Local governments may not issue outright bans on <br />cannabis business, or limit operations in a manner beyond what is provided by state law. <br />Cannabis Retail Restrictions (342.13) <br />Local governments may limit the number of retailers and microbusiness/mezzobusinesses <br />with retail endorsements allowed within their locality, as long as there is at least one retail <br />location per 12,500 residents. Local units of government are not obligated to seek out a <br />business to register as cannabis business if they have not been approached by any potential <br />applicants, but cannot prohibit the establishment of a business if this population <br />requirement is not met. Local units of government may also issue more than the minimum <br />number of registrations. Per statutory direction, a municipal cannabis store (Page 19) <br />cannot be included in the minimum number of registrations required. For population <br />counts, the state demographer estimates will likely be utilized. <br />Tribal Governments (342.13) <br />OCM is prohibited from and will not issue state licenses to businesses in Indian Country <br />without consent from a tribal nation. Tribal nations hold the authority to license tribal <br />cannabis businesses on tribal lands – this process is separate than OCM’s licensing <br />process and authority. Subject to compacting, Tribal nations may operate cannabis <br />businesses off tribal lands. There will be more information available once the compacting <br />processes are complete. <br />Taxes (295.81; 295.82) <br />Retail sales of taxable cannabis products are subject to the state and local sales and use tax <br />and a 10% gross receipts tax. Cannabis gross receipts tax proceeds are allocated as follows: <br />20% to the local government cannabis aid account and 80% to the state general fund. <br />Local taxes imposed solely on sale of cannabis products are prohibited. <br />Cannabis retailers will be subject to the same real property tax classification as all other <br />retail businesses. Real property used for raising, cultivating, processing, or storing cannabis <br />plants, cannabis flower, or cannabis products for sale will be classified as commercial and <br />industrial property. <br />Page 10