Oklahoma Medical Cannabis Business Challenges State Agencies with Lawsuit

[dropcap class=”kp-dropcap”]A[/dropcap]n Oklahoma cannabis cultivation company is suing the state over what it feels is excessive fees and taxes. Caulfield Holdings Botanicals of Tulsa, Oklahoma, along with medical cannabis patient Alicia Vargas of Weatherford, Oklahoma, filed a lawsuit and will request it to be filed as a class-action case.

The suit, filed in Oklahoma County, states that the Oklahoma State Department of Health requirement for growers to register with the state’s bureau of Narcotics and Dangerous Drug Control as excessive. “There’s a reason these businesses are being required to register with the Bureau of Narcotics,” said Tulsa attorney Ron Durbin who is representing Caulfield Holdings in the case. “One is to extract more money. Another is to allow the OBN to go on a crusade when these businesses start to take off.” He mentioned the bureau had publicly opposed medical cannabis legalization.

The cost of a narcotics license for a cultivator is $500. Durbin estimated that the licenses will bring in one million dollars for the Bureau of Narcotics. Cannabis businesses must also pay $2,500 to the Oklahoma Medical Marijuana Authority to be licensed in the state.

The lawsuit also challenges the seven percent excise tax that is on top of the state and local sales taxes. State Question 788’s emergency rules referred to the tax as a sales tax. The lawsuit describes a concern for the fees and taxes will crush small business. “It all adds up,” said Nikki Lerch from Caulfield Holdings Botanicals. “You have to pay for this and pay for that, and we’re just a small operation trying to get started.”

There are approximately 8,500 patient and caregivers approved to have medical cannabis in Oklahoma and currently over 950 cultivators approved.

Neither the state Department of Health, the Oklahoma Attorney General’s or the Bureau of Narcotics have released a comment regarding the lawsuit. The state agencies have 40 days to respond in court to the lawsuit.