Licensing
License Types
- Cultivator/Grower Licence — commercial cannabis cultivation; tiered by size
- Local zoning approval typically required
- Background checks mandatory for all principals
- Processor / Manufacturer Licence — production of edibles, concentrates, extracts, topicals
- Retail Dispensary Licence — adult-use and/or medical storefront sales
- Minimum distance requirements from schools, daycares
- Local approval required in addition to state licence
- Medical Dispensary Licence — medical-only sales in states with separate programmes
- Delivery Licence — consumer delivery from licensed retailer; availability varies by state
- Testing Laboratory Licence — independent, ISO/IEC 17025 accredited
- Transport/Distributor Licence — intra-state movement between licensees
- Social Equity Licences — many states offer priority review, fee waivers for equity applicants
Taxation
Delaware Adult-Use Excise Tax15% adult-use excise tax on retail sales
Adult-Use Excise
15%
On retail price
State Sales Tax
None
DE has no general sales tax
Local Tax
Varies
Municipal taxes may apply
Medical
0%
No excise on medical sales
Consumer & Business Implications
- Effective consumer price includes state excise + state sales tax + local tax — typically 20–35% above base retail price
- Medical patients generally pay reduced tax rates (sales tax only; excise often waived)
- Cannabis businesses may not deduct ordinary business expenses under IRS § 280E — federal tax burden significant
- Local municipalities may impose additional business or sales taxes
Advertising
- Minors: Advertising prohibited where >30% of audience is under 21; no content appealing to minors (cartoons, toys, candy imagery)
- Location restrictions: Ads prohibited within 500–1,000 ft of schools, daycares, playgrounds (varies by state)
- Required disclaimers: 'For adults 21+ only. Keep out of reach of children.' Licence number required on all ads.
- Social media: Age-gating required; audience verification; no general public targeting
- Platforms (Google, Meta) restrict cannabis ads — use compliant cannabis ad networks
- Influencer marketing must verify audience age demographics
- Prohibited: Unsubstantiated health claims, depictions of consumption by minors, free product offers tied to purchase
Workplace Rules
- Off-duty protections vary by state — many states now restrict employer discrimination based solely on off-duty cannabis use or positive metabolite test
- Safety-sensitive positions always exempt — employers may enforce zero-tolerance for CDL drivers, heavy equipment operators, healthcare workers
- Federal contractors must comply with Drug-Free Workplace Act
- DOT-regulated employees always subject to federal testing rules
- On-duty impairment is never protected — all states allow employers to prohibit impairment during work hours
- Medical cannabis users may have additional state-level protections in some jurisdictions
- Drug-free workplace policies may still require pre-employment screening; consult state-specific guidance
Possession & Transactions
Adult-Use Personal Possession Limit1 oz (28 g) flower — see state specifics below
1 oz
Flower — on person
5–8 g
Concentrate (varies)
6 plants
Home grow (most states)
1 oz
Per transaction — retail
Transaction Rules
- Age restriction: 21+ for adult-use; valid government-issued photo ID required at point of sale
- Purchase limits: Typically 1 oz flower per transaction; concentrates and edibles have separate limits
- Identification: Retailer must scan/verify ID; retailer liable for sales to minors
- Cash & payment: Cash widely accepted; debit increasingly available; credit cards limited due to federal banking rules
- No interstate transport: Purchases may not be taken across state lines
Product Testing
- Mandatory potency testing: Total THC, THCA, CBD, CBDA — all products before sale
- Contaminant testing: Pesticides, heavy metals (Pb, Cd, As, Hg), microbials (e.g. E. coli, Salmonella), mycotoxins, residual solvents (concentrates)
- Approved laboratories: Must hold state testing licence and ISO/IEC 17025 accreditation; no financial interest in producers
- Labels: COA results must appear on product; QR code to full lab report increasingly required
- Compliance testing: Regulators conduct random market sampling; non-compliant products recalled
Medical Use
Qualifying Conditions
- Cancer, HIV/AIDS, glaucoma, epilepsy/seizures, severe chronic pain, PTSD, multiple sclerosis, Crohn's disease, severe nausea, cachexia, ALS
- Most states allow physician discretion for debilitating conditions not explicitly listed
Medical Possession Limit6 oz per 30 days
Prescription & Card Rules
- Physician certification (not prescription) required — DEA-licensed MD or DO must recommend
- State registry card issued by health department — typically annual renewal required
- Card fee typically $50–$200/year (reduced for low-income patients in many states)
- Patients aged 18–20 may access medical with valid certification; minors under 18 require guardian caregiver
- Most states do not recognise out-of-state medical cards (exceptions: AZ, RI, DC)
- Renewal: physician consultation required annually; many states allow telehealth certification
Adult-Use Cannabis
Differences from Medical Use
- Age: 21+ for adult-use; 18+ for medical (with physician certification)
- Tax: Adult-use subject to excise tax + sales tax; medical typically pays sales tax only or lower combined rate
- Purchase limits: Adult-use often limited to 1 oz per transaction; medical allows higher amounts per period
- Qualifying criteria: No medical condition required for adult-use; medical requires physician certification
- Product access: Some high-potency concentrates may be restricted to medical-only in certain states
Local Ordinances
- Opt-out rights: Municipalities may prohibit retail sales — home cultivation generally remains permitted
- Retail sales launched 2024. Municipalities have some zoning authority over dispensary locations.
- Zoning: Minimum distance requirements from schools, churches, residential zones vary by locality
- On-site consumption: Cannabis lounges/cafes require separate local approval in most states
Penalties (Summary)
- Possession over adult limit: Civil infraction or misdemeanour depending on amount and state
- Public consumption: Civil fine ($100–$500 typical) in most legalised states
- Sale without licence: Felony in all states — significant prison terms and fines
- Distribution to minors: Enhanced felony charges in all states
- DUID (driving under influence of cannabis): Misdemeanour to felony depending on circumstances; licence revocation
- Federal charges: Possible if conduct involves federal property, crossing state lines, or implicates RICO statutes