How do I open a cannabis business?

The following cannabis business permit types are allowed in King City in the properly zoned areas:

  • CA Types 2 (small indoor cultivation)
  • CA Type 3 (medium indoor cultivation)
  • CA Type 4 (nursery)
  • CA Type 6 (non-volatile manufacturing)
  • CA Type 7 (volatile manufacturing) 
  • CA Type 8 (testing)
  • CA Type 10 (dispensary and non-storefront delivery) 
  • CA Type 11 (distribution)
  • CA Type 12 (microbusiness)

The following permits may be required, along with the approval authority:

  • Conditional Use Permit (CUP) - Planning Commission Approval 
  • Building Permit – Building Official Approval
  • Business License – Issued by City staff
  • Operations Authorization - City Manager Approval
  • Employment Permit
  • Pre-application Process and Lottery for Retail Storefront Dispensaries – Conducted by Outside Third Party

The costs associated with cannabis businesses include the following:

  • CUP Application – Charged based on actual cost of processing (Minimum $3,000 deposit)
  • Cannabis Operations Permit Application – Charged based on actual cost of processing (minimum $500 deposit)
  • Cannabis Operations Permit and Annual Renewal - $10,500
  • Cannabis Conditional Operations Permit Issuance and Renewal - $1,500
  • Retail Storefront Pre-Application Process - $12,250
  • Business License – Based on number of employees/maximum of $875 annually
  • Employment Permit - $250 for each employee/$200 renewal and $300 for owner/$250 renewal
  •  Annual Taxes Rates (paid quarterly):
    • Cultivation - $5 per square foot based on total area permitted by the CUP
    • Manufacturing and Testing – Flat rate of $36,107
    • Nurseries - $5 per square foot for first 5,000 square feet and $2.50 per square foot of remaining area based on total area permitted by the CUP
    • Dispensary – 5% of gross receipts
    • Distribution of cannabis products generated from outside King City – 2% of gross receipts.

If you are interested in applying for a commercial cannabis permit, please email the City of King Planning Technician or phone (831)386-5924 for more information.


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