Massachusetts Cannabis Businesses Sue City of Newton Over Unlawful Fees
A lawsuit has been filed by Ascend Mass LLC and other cannabis businesses against the city of Newton, Massachusetts, alleging that the city illegally charged them nearly $2 million in “community impact fees.” The fees were imposed under a state law that allows towns to offset the costs of hosting marijuana establishments.
The lawsuit claims that the fees charged by Newton were not reasonably related to the cost of operating the cannabis businesses. In fact, the businesses argue that the city has not incurred any costs on their behalf. The host community agreement between Ascend and the city required the company to contribute 3% of its profits to the city.
The lawsuit seeks to recover the unlawful fees paid by the cannabis businesses and to prevent the city from continuing to impose such fees in the future. The case has been filed in the Massachusetts Superior Court under docket number 2581-CV-00398.
