Florida’s Medical Marijuana Fees Rise as Court Upholds State Policy

27 March 2025

Florida’s medical marijuana industry just got more expensive to operate in. A state appeals court has upheld a massive license renewal fee hike for Medical Marijuana Treatment Centers (MMTCs), reinforcing the Florida Department of Health’s authority to charge roughly $1.3 million every two years—up from just $60,000 previously.

The First District Court of Appeal's decision affirms a 2023 ruling and rejects a challenge from Sanctuary Cannabis, which runs 25 dispensaries statewide. The company argued the fee was arbitrary and should have factored in the state’s other cannabis revenues, such as patient ID card fees. But the court ruled the law requires MMTC fees to cover regulatory costs alone, without offsets from other income.

This ruling confirms Florida as one of the most expensive states for medical marijuana businesses. And with product prices falling—down 30% in late 2024—smaller operators could be pushed out, leaving the market increasingly dominated by large companies that can afford the steep costs.

While the state recently approved 22 new licenses, nearly doubling the number of MMTCs, the high fees may discourage competition. For patients, that could mean fewer choices and potentially higher costs passed on by providers trying to stay afloat in a tightening market.