A fifth business associated with the newly established medical marijuana market is slated to arrive within the local community.
During a special call meeting on Aug. 21, the Board of Mayor and Aldermen approved the operation of a cannabis processing plant at 301 Jerry Clower Boulevard, located at the former Blue Moon gas station. The city council based its approval on a recommendation from the local planning and zoning board for a variance in a C-3 zone to allow owner Kenwaljit Singh to open his business providing “no other business goes into that location.”
Medical Marijuana Presence in Yazoo County
Currently, Yazoo County has two dispensaries, a cultivation facility and a micro-cultivation facility. Singh’s future operation on Jerry Clower Boulevard will bring a processing plant into the local medical marijuana market.
The Jerry Clower Boulevard operation would be the second cannabis-related business within Yazoo County under Singh’s ownership. He, along with Roger Simmons and Jasbir Singh, already operate Magnolia High Growers, a cultivation facility in the Benton area, located at 109 Dixon King Road at the former site of a plastic factory.
According to the Mississippi Department of Health’s public registry of medical cannabis establishments, another license was also approved in the Bentonia area for a micro-cultivation facility. The registry lists Living Farms Soils LLC, which is located on Old Dover Road.
There are also two dispensaries within Yazoo County, according to the state registry. Bloom Medical Cannabis, LLC, located at 110 Jerry Clower Boulevard, is owned by Marley Porter, Abdullah Mansoor and Mohammed Alqadhi. Yazoodp, LLC is the second dispensary within Yazoo City, located at 1212 Jerry Clower Boulevard, located inside a former physical therapy clinic in a shopping center.
The emergence of the medical marijuana market first appeared within the community in July of 2022 when Singh and Simmons both appeared before the Yazoo County Board of Supervisors concerning their cultivation facility, Magnolia High Growers, in the Benton area. The owners appeared before the county supervisors to assure the board that their facility would be properly secured, as required by the state.
Simmons reported to county leaders that Magnolia High Growers would employ about ten to 15 people. He also said the facility would have an advanced security system with alarms, cameras and 24-hour surveillance. He added that about $1.2 million dollars had been invested into the facility, anticipating spending $200,000 more. Also, he added that the facility is strictly a growing site, not retail. It will not be open to the public, only to employees who have passed the necessary background checks.
Appearing before the city council last month, Simmons said the future processing plant at the former Blue Moon gas station would handle “one of the most controlled products you have ever seen in your life,” adding that state officials conduct strict audits with the operation.
Simmons also said the new facility would be another revenue generator for the local business community.
The Effect on the Economy
According to the Mississippi Department of Revenue, there are two taxes associated with the sale of medical cannabis. Applicants will be required to obtain applicable tax permits as part of the application process.
• Medical cannabis cultivators are subject to a 5 percent excise tax on the first sale/transfer of medical cannabis. Excise tax is due if the cultivator sells to a processing facility. Excise tax is due on the transfer of cannabis between related entities.
• Medical cannabis dispensaries will charge the standard 7 percent sales tax to cardholders at the point of sale. Dispensaries will also be responsible for special tax levies in the cities of Jackson and Tupelo.
According to the Mississippi Cannabis Information Portal, as of September 2022, “Center Square reports that the state of Mississippi has collected nearly $6 million in revenue from medical marijuana companies before the actual sales commence. These fees relate to the licensing and application fees for cultivators, dispensaries, processors, laboratories, and transportation companies.”
The Mississippi Cannabis Information Portal also states that “with the commencement of medical marijuana sales by 2023, Mjbizdaily estimates that revenue from medical marijuana sales in Mississippi could get up to $265 million within the first year and up to $800 million by the fourth year. It also estimates that the potential medical marijuana tax revenue accruing to the state within three years of establishing the program could hit $47 million.”
