Kentucky Real Estate & Cannabis Regulations

Cannabis Status: Pending

On January 4, 2024, Kentucky’s Cabinet filed 10 regulations to structure the state’s medical marijuana industry, laying a foundation from cultivation to patient delivery. These regulations cover critical areas such as definitions, cultivator, processor, producer, and dispensary operations, ensuring a comprehensive framework for safety, compliance, and consumer protection. They also address transportation, delivery, advertising, packaging, labeling, and testing of medicinal cannabis, emphasizing the importance of quality control and public safety in the burgeoning medical cannabis market in Kentucky. These steps represent significant progress in operationalizing the state’s medical marijuana program, ensuring that patients have access to safe, regulated medicinal cannabis products. We expect that information on the application process for medical marijuana businesses in the state to be forthcoming in the next few months.

Name: Kentucky
Population: 4,509,000
Median Income: $60,183
Cannabis Uses: Cultivator, Processor, Producer, Dispensary, Cannabis safety compliance facility
State Cannabis Overview: Kentucky is poised to begin medical marijuana sales at the start of 2025. State agencies recently released a first round of regulations for the industry and information on an application process will be forthcoming in the near future.

Kentucky Cannabis & Commercial Real Estate Research


Cultivator, Processor, Producer, Dispensary, Cannabis safety compliance facility

Distance Requirements:

Cannabis businesses will be required to be located further than 1,000 feet from an existing elementary or secondary school or a daycare center and may be subject to additional restrictions by local governments. The Kentucky Medical Cannabis Program is providing a zoning tool to assist proposed  cannabis businesses, local governments, and citizens with evaluating where cannabis businesses may be located. The tool can be found here​.

License Types and Caps:

What is a cultivator? – A cultivator is a business that plants, cultivates, harvests, trims, and
stores cannabis seeds, seedlings, plants, or raw plant material.

What is a processor? – A processor is a business which prepares, manufactures, and packages
medical cannabis products.

What is a producer? – A producer is a business which is both a cultivator and a processor.

What is a dispensary? – A dispensary is a retail location where medical cannabis products are sold.

What is a cannabis safety compliance facility? – A cannabis safety compliance facility is responsible for testing medical
cannabis products produced in Kentucky to ensure those products are safe for consumption and use.

There is no numerical limit on the number of any of the types of businesses

Tax Rate: $3.50 per gram on marijuana, loose. $1,000 per marijuana plant. $200 per gram controlled substance by weight. $2,000 per 50 dosage units of controlled substance.

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