Risk Advisory
Understanding DMF Certification: Process, Timeline, and Key Decisions
When DMF certification becomes a necessity, understanding how controls, documentation, and attestation come together is key to meeting NTIS requirements.
AAFCPAs would like to make Cannabis clients aware that Caroline’s Cannabis recently reached a $1.2 million settlement with the town of Uxbridge, Massachusetts contesting millions of dollars in community impact fees imposed on marijuana businesses. The lawsuit claimed that the town had not provided any documentation justifying a host community agreement (HCA) fee, which is required by law. The Cannabis Business Association has since called for municipalities to cease excess fee collections and refund overages.
Community impact fees are those imposed on marijuana establishments and medical marijuana treatment centers designed to cover unique costs imposed on the municipality for hosting that business. These fees have been a source of controversy, with cannabis business leaders pointing out that little accountability is placed on municipalities when it comes to how that revenue is spent.
Litigation has also had a wide-reaching effect across the Commonwealth. While the nearby city of Worcester, Massachusetts has no plans to issue refunds, it has ceased collections as of January 2023. Likewise, Northampton, Amherst, and Boston, Massachusetts have also ended the collection of community impact fees, with Boston taking this one step further by refunding fees to affected businesses in November 2022. AAFCPAs advises that operators hold their communities accountable and that those communities, in turn, prove their need for community impact fees.
If you have questions, please contact David McManus, CPA, CGMA, Tax Partner & Cannabis Practice Leader at 774.512.4014 or dmcmanus@aafcpa.com—or your AAFCPAs Partner.
