Six communities in Rhode Island banned cannabis retailers from opening within their borders on Tuesday. That means the businesses will be allowed in 33 of the state’s 39 cities and towns.
In May, Rhode Island became the 19th state to legalize adult-use recreational marijuana. The legislation allowed municipalities to hold a referendum asking voters if they want to opt out of offering licenses to sell recreational marijuana. The referenda faced voters in 31 municipalities on Election Day.
Ultimately, six voted “No” on the measure, closing the door on potential recreational dispensaries. They are: Barrington, East Greenwich, Jamestown, Little Compton, Scituate and Smithfield.
Communities that already host licensed medical marijuana treatment centers — Providence, Warwick and Portsmouth — were unable to opt out of allowing recreational sales, too. The state’s three existing medical marijuana centers will be the first to sell recreational marijuana, with a planned start date of Dec. 1. Five other communities did not hold referenda, meaning they will allow cannabis sales.
Just because a municipality decided to allow cannabis retailers does not mean that community will actually see a dispensary open in town. Rhode Island can license up to 33 distributors in total, all determined by a cannabis control commission appointed by the governor. The 24 recreational-only distributors will be licensed in six zones around the state, with four dispensaries per zone. Some cities or towns may have multiple licensees, and one of the licenses must go to a workers’ cooperative.
Recreational marijuana will be taxed at 20%, including a 10% cannabis tax, a 3% tax by the community where the marijuana is sold, and the current 7% sales tax. The communities that voted to ban cannabis retailers will not receive tax revenue.