Massachusetts Dispensary Demands $1.4 Million Refund from Host City

The town contends it doesn't need to provide documentation to support the levied fee.

A cannabis dispensary in south-central Massachusetts has filed suit against the town of Uxbridge where it operates, claiming that city officials can’t justify charging the company roughly $1.4 million in “community impact fees,” a long-controversial policy across the state’s marijuana industry that has spawned other lawsuits in the past.

The suit – filed in Massachusetts Superior Court by Caroline’s Cannabis on April 7 last year – contends that Uxbridge officials were unable to provide sufficient documentation for actual impacts to the town from the dispensary’s existence in order to justify quarterly impact fees of roughly $90,000, Law360 reported.

Caroline’s Cannabis alleged in its suit that by the time it filed suit, it had forked over a total of $1.26 million since opening in 2019. The company also asserted that its impact fees were more than what was being paid by 18 other cannabis shops that also operate in Uxbridge.

The case could go to trial this summer, since the town is fighting the claims and has replied in court filings that it’s not required by state or local law to document expenses incurred by the dispensary’s existence. Both the town and Caroline’s Cannabis have accused each other in court documents of breach of contract and other misdeeds.

A pretrial conference is scheduled for July 11 in the case, but the town requested a stay, and the next steps in the case are unclear.

Local impact fees for marijuana companies in Massachusetts have been under fire for years, with some cannabis companies accusing various municipalities of abusing the power in order to fleece marijuana businesses, while localities argue they’ve had a range of increased costs associated with legal cannabis.

John Schroyer

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up

About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


Recent Tweets

Back to Top

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.