Olmsted County, Minnesota, is preparing for the sale of recreational cannabis following a unanimous decision by the County Commissioners to pass a new ordinance. This ordinance will facilitate the retail sale of cannabis in the county. The state lottery for recreational cannabis businesses is scheduled for June 5, where 14 businesses will be selected to operate in Olmsted County after conducting two local lotteries.
Sagar Chowdhury, the Assistant Director of Public Health in Olmsted County, emphasized the importance of local regulations in accordance with state law. He explained that cannabis business owners must win both the state lottery and the local lottery to be eligible to sell recreational cannabis. “Once they receive a license at the state level, they have to obtain a registration at the local level to officially sell retail products,” said Chowdhury.
Peter Jada, owner of ‘Canna Serve Ya’, shared his anticipation for the process, stating that he is nearing completion in obtaining a recreational business license. Jada noted that the journey toward legal sales has taken time since cannabis was legalized in Minnesota in 2023. He expressed optimism about profitability if he succeeds in both lotteries.
Jada remarked, “Minnesota wasn’t ready to have people start right off the bat. They wanted to say, OK, let’s get it legalized, have people [selling] legal cannabis things, so you can’t get in trouble for it right away. Then we’ll kind of build the framework around that.”
Currently, cannabinoid products in Minnesota are subject to a 10% tax, which may increase after the upcoming legislative session. Ted Galaty, owner of Willow Keep Farm and Hemp Maze, expressed concerns regarding future tax implications, suggesting that the effective tax rate for cannabis sales could reach 25% when considering additional local taxes. Galaty stated, “You’d be at 15% on top of your sales tax, and legislators also want to add a 3% municipality tax.”
Galaty also chose not to pursue a recreational license, citing the influence of established medical cannabis companies in Minnesota, which he referred to as the “Medical Marijuana Mafia.” He criticized these companies for monopolizing the market and using lobbying tactics to sway lawmakers. “You have ‘Varial Health’ and ‘Green Thumb Industries,’ and those players, they’re dirty players,” he said. “They have really high-paying lobbyists that will pad the pockets of our legislators, both the Republicans and the Democrats, and all they’re in it for is themselves.”
Olmsted County will start accepting applications for the local lottery by late June, with another round set for late July. Business owners can begin selling cannabis products at their discretion after winning both lotteries. As the cannabis retail landscape evolves in Minnesota, the upcoming lotteries will play a pivotal role in shaping the industry in Olmsted County.
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