How to open a cannabis dispensary in the USVI

This is an operator guide. If you’re looking for a place to buy cannabis on St. Thomas, St. Croix, or St. John, see the USVI dispensary directory instead.

Who this is for. Applicants planning to apply for a Cannabis Dispensary License under the Virgin Islands Cannabis Use Act (Act 8680). Existing business owners evaluating the market. Investors assessing the USVI cannabis landscape.

Where things stand. OCR’s first dispensary application window opened in mid-2025 and closed by early September. Ten conditional licenses have been awarded (5 St. Thomas, 2 St. Croix, 3 St. John), leaving seven of seventeen territory-wide slots still open. A second window has not been scheduled. This guide covers the process so you know what to prepare if OCR opens another round.

What you’ll need. Virgin Islands residency for at least 10 of the last 15 years (for majority ownership). A business entity with at least 51% resident ownership. Site control on an eligible parcel. A merit-scored application with business, security, community-benefit, and seed-to-sale plans. And the application fee, non-refundable on submission.

Per-island license caps

Act 8680 caps dispensary licenses by island under § 787. Each island is a separate market — cannabis cannot legally move between them.

Island	Cap	Conditional licenses awarded	Slots remaining
St. Thomas	7	5	2
St. Croix	7	2	5
St. John	3	3	0
Total	17	10	7

OCR may issue additional licenses after January 1, 2025, only if a study shows demand exceeds or will exceed supply within 24 months. The first 10 conditional licenses were awarded in January 2026 through a merit-scored application process. None have received a Certificate to Operate yet — the target is fall 2026 for the first regulated sales.

For the current list of conditional licensees, see:

• St. Thomas dispensaries
• St. Croix dispensaries
• St. John dispensaries

Residency and ownership

At least 51% of the entity holding a Cannabis Dispensary License must be owned by Virgin Islands residents on a fully diluted basis. A “resident” is a natural person who currently resides in the territory and has resided there for 10 of the last 15 years prior to applying.

This applies to all entity types — LLCs, corporations, partnerships, cooperatives. Minority investors (under 50%) are not subject to the residency requirement, but all individuals associated with the license are subject to background screening.

Employees have no residency requirement. The 10-of-15-years rule applies to owners, not staff. See the jobs page for employment eligibility.

The application process

Dispensary license applications are scored on a 1,000-point merit rubric under Section 777-12 of the 2024 Cannabis Rules and Regulations. The first application window opened in mid-2025 and resulted in the 10 conditional awards above.

Your application must include:

• Legal name and structure of the business entity
• Physical address of the proposed dispensary location
• Names, birth dates, and proof of residency for all owners and investors
• A detailed business plan covering operations, staffing, and financial projections
• Security plan: physical security, surveillance, cash handling, diversion prevention
• Record-keeping and seed-to-sale compliance plan (METRC tracking system)
• Community benefit plan
• Product knowledge and patient/customer service training program

Applications that do not meet the threshold score are denied. Application fees are non-refundable.

Application fee

The maximum application fee for a Cannabis Dispensary License is $50,000, set by Act 8680 § 803(b), non-refundable. Annual renewal fees are charged at the same rate or as determined by the Board, with increases capped at 10% per year.

For the complete fee schedule across all license types, see the USVI cannabis fee guide.

Location requirements

A dispensary must be located at least 500 feet from any public or private school. Beyond the statutory buffer, your location strategy matters:

• Island choice is permanent. Your license is island-specific. Cannabis cannot cross between St. Thomas, St. Croix, and St. John. Your customer base is the island you’re on.
• Foot traffic vs. destination. Tourist-heavy areas (Charlotte Amalie, Cruz Bay, Christiansted waterfront) bring walk-in volume. More remote locations require a destination draw.
• Parking and access. In a cash-heavy business, customer convenience and safety go together.
• Climate control. The USVI heat and humidity require investment in proper storage conditions — improper storage means product loss.

Vertical integration

A dispensary licensee can also apply for a Cannabis Cultivation License on the same island. This is the only supply-side license you can stack with a dispensary — Act 8680 does not allow combining dispensary with manufacturing, testing, or other authorizations.

Five of the 10 conditional dispensary licensees also hold cultivation licenses or are affiliated with cultivation operations. For details on the cultivation side, see starting a cannabis grow in the USVI.

Under the 2024 Rules, dispensaries must source at least 15% of their product from Micro-Cultivation Permittees. This creates a mandatory supply relationship with the territory’s small craft growers.

Banking and capital

Cannabis remains federally scheduled, which limits traditional banking access. The USVI faces this challenge more acutely than mainland states because of the territory’s smaller banking ecosystem.

As of early 2026, OCR Executive Director Joanne Moorehead has confirmed that banking arrangements are being established for the territory’s cannabis businesses. The situation is evolving — operators should plan for cash-heavy operations initially while banking solutions develop.

Outside investors may hold up to 49% of a cannabis business without meeting the residency requirement. This is a common structure for accessing mainland capital while maintaining the resident-majority-ownership mandate.

Taxes and fees collected at the register

Dispensaries are the tax collection point for the territory’s cannabis revenue. At point of sale:

• 18% sales tax on all cannabis products
• $20 non-resident Cannabis Fee per purchase for customers who are not VI residents (verified by VI-issued driver’s license, voter registration card, or senior-citizen ID)

Compliance and tracking

Every dispensary operates under METRC, the territory’s seed-to-sale tracking system. The Cannabis Advisory Board approved METRC adoption for the USVI market, and operators are required to maintain detailed records of all inventory, sales, and disposals. OCR conducts inspections; inspectors carry peace-officer authority under 5 V.I.C. § 3561.

Failure to maintain accurate tracking or comply with OCR reporting requirements can result in license suspension or revocation.

What happens after conditional approval

A conditional license is not a Certificate to Operate. Between conditional approval and opening day, licensees must:

• Complete facility build-out to OCR specifications
• Pass OCR inspection
• Staff and train the operation
• Integrate with the METRC tracking system
• Obtain the Certificate to Operate from OCR

As of April 2026, all 10 conditional dispensary licensees are in the build-out, inspection, and staffing phase. OCR is targeting fall 2026 for the first Certificates to Operate.

Related guides

• USVI dispensary directory — current conditional licensees by island
• USVI cannabis fee guide — complete fee schedule
• Starting a cannabis grow in the USVI — cultivation licensing and vertical integration
• USVI cannabis law: MCPCA to Act 8680 — the full statutory history
• Claim your listing — if you already hold a conditional license, claim your listing on VIBE HIGH