Cannabis Permits & Licenses in Pittsburgh, PA

Verifies zoning/use compliance; renewed annually

Required due to high-value inventory/security requirements

Required for all LLCs; file Form DSCB:15-8821. Annual Decennial Report required every 10 years ($70 fee).

Pennsylvania medical cannabis program only (no adult-use as of 2024). Limited licenses issued via competitive RFP process. Must also obtain municipal approval. Effective under Act 16 of 2016.

All owners, officers, employees must register as agents. Background check and training required (no exam specified).

Required for all businesses selling tangible goods, including medical cannabis products. File Form REV-72. Applies to all PA businesses.

File Form DSCB:54-311. Required for all businesses using DBAs. Renew every 10 years with Decennial Report.

Required for all PA LLCs to maintain good standing. Applies to all businesses.

Register for withholding tax account if employing workers. Form PA-1000. Applies to all employers.

Mandatory municipal opt-in approval required for all medical marijuana facilities. State law prohibits facilities within 1,000 ft of schools without waiver.

All cannabis businesses selling tangible goods or certain services must collect and remit sales tax. The current state sales tax rate is 6%. Local add-on taxes do not apply in Pennsylvania. Registration is done through the PA Online Business Registration System (OBRS).

Required for all employers in Pennsylvania. Cannabis businesses with employees must register for PA withholding tax and withhold state income tax from employee wages. Registration via PA Online Business Registration System (OBRS).

All employers in Pennsylvania must register with the Pennsylvania Unemployment Compensation program. Employers pay quarterly unemployment insurance taxes based on a taxable wage base ($8,000 per employee in 2024) and experience-rated tax rate (ranging from 1.4% to 10.5%).

All LLCs doing business in Pennsylvania must register for Corporate Net Income Tax (CNIT) if they are treated as corporations for tax purposes, or file a PA-40 if treated as pass-through entities. Most multi-member LLCs are pass-throughs and must file PA-20S/PA-65. Registration occurs via PA Online Business Registration System (OBRS).

Pennsylvania imposes a 5% excise tax on the gross receipts from the sale of medical marijuana by licensed growers and processors. This tax is in addition to state sales tax. The tax applies at the wholesale level and is remitted monthly. Registration is required through the PA Department of Revenue's e-TIDES system.

Cannabis businesses located in cities like Philadelphia or Pittsburgh must register for local earned income tax and services tax. Rates vary: e.g., Philadelphia charges 3.7945% EIT and 0.5% LST. Employers must withhold and remit these taxes. Registration is with the local tax collector (e.g., BRT in Philadelphia, www.phila.gov).

The LST is a flat tax on earned income, capped at $52 per employee per year. It is withheld by employers in certain jurisdictions. Not all municipalities impose it. Employers must register locally and remit payments annually. Exemptions may apply for low-income earners or seasonal workers.

Required for all Philadelphia businesses; cannabis-specific operations must also comply with state MMJ program zoning

Cannabis dispensaries restricted under Zoning Code §14-503(2); see Philadelphia Code Chapter 14-500 for MMJ overlays

Required for vault installations, HVAC upgrades typical in cannabis facilities

High-hazard occupancy (Group H) classification for cannabis extraction/grow facilities per Fire Code

Cannabis businesses prohibited from advertising per Philadelphia Code §14-500(3)(c)(.2)

Pittsburgh city requirements supersede in city limits; see Pittsburgh Code §1001.28

Growers prohibited within 250 ft of schools per Ordinance 2017-0219

Cannabis operations classified as hazardous (H-3) occupancy

Mandatory for all employers with employees in Pennsylvania under the Workers' Compensation Act (77 P.S. § 411). Applies to cannabis businesses regardless of size. Sole proprietors are not automatically exempt unless they formally elect out under Section 305(c).

Required under PA Code § 1141.33(b)(7) for all licensed medical marijuana organizations. Must include coverage for premises liability, product liability, and personal injury. Minimum $2 million per occurrence and $4 million annual aggregate.

A $50,000 surety bond is required under 28 Pa. Code § 1141.33(b)(6). The bond ensures compliance with the Medical Marijuana Act and regulations. Required for all licensed facilities.

Pennsylvania law (75 Pa.C.S. § 1786) requires all business-owned vehicles to carry minimum liability coverage: $15,000 bodily injury per person, $30,000 per accident, $5,000 property damage. Applies if cannabis business operates delivery or transport vehicles.

Mandated under 28 Pa. Code § 1141.33(b)(7) as part of the general liability insurance requirement. Covers claims related to product contamination, mislabeling, or adverse effects. Minimum $2 million per occurrence and $4 million aggregate required.

While not all single-member LLCs without employees need an EIN immediately, cannabis businesses typically require one due to banking and reporting complexities. IRS Form SS-4 is used to apply.

Under 26 U.S.C. § 280E, businesses trafficking in Schedule I or II controlled substances (including cannabis) cannot claim deductions or credits for federal income tax purposes, except for cost of goods sold. This applies regardless of state legality. All cannabis businesses are subject to this.

OSHA requires employers to provide a safe workplace, including hazard communication (e.g., for solvents used in extraction), injury and illness recordkeeping (if over 10 employees or in certain industries), and training. Cannabis extraction labs using flammable solvents fall under additional OSHA standards (e.g., 29 CFR 1910.106).

Requires accessible facilities, communication with customers with disabilities, and reasonable modifications. Applies to dispensaries open to the public. Does not apply to purely wholesale operations with no public access.

Cannabis extraction using hydrocarbons (e.g., butane) produces hazardous waste regulated under RCRA. Businesses must comply with EPA generator requirements (40 CFR 262) based on waste volume. Registration with EPA ID number may be required.

FTC enforces truth-in-advertising laws. Cannabis businesses must avoid deceptive claims (e.g., unsubstantiated health benefits). Even though cannabis is federally illegal, FTC still asserts jurisdiction over consumer protection. Applies to all public-facing marketing.

Fair Labor Standards Act (FLSA) requires minimum wage, overtime pay, and recordkeeping. Most cannabis businesses meet the interstate commerce threshold due to use of phones, internet, or equipment from out of state. Applies to all employees.

Requires eligible employees to be granted up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Cannabis businesses meeting employee threshold must comply regardless of federal illegality.

All employers must verify identity and work authorization using Form I-9. Applies regardless of industry. E-Verify is not federally required unless in a state that mandates it or for federal contractors.

Despite state-legal status in Pennsylvania, cannabis remains a Schedule I controlled substance under federal law. No federal license exists for commercial cannabis cultivation, processing, or retail. All such activities are federally illegal. This is the most significant federal barrier.

FinCEN requires cannabis businesses to file SARs: "Marijuana Limited" (for state-compliant businesses) or "Marijuana Priority" (if red flags). Banks serving cannabis businesses must also file. Guidance issued in 2014 remains in effect.

Under federal law (21 U.S.C. § 844), individuals with drug felony convictions are generally prohibited from involvement in state-licensed cannabis operations. Background checks are required for state licensing and reviewed by DEA.