Taxation of CBD and Hemp Products
Cannabidiol (CBD) and hemp products are considered tangible personal property by the Department of Revenue. These products are taxable unless they fall into a sales tax exemption category. The following table shows several examples and explains whether they are subject to sales and use tax. Please note this is not an exhaustive list.
| Example |
Taxable -
Sales and Use Tax |
|---|
|
Clothing and Shoes |
No |
|
Edible |
No |
|
Gummies |
No |
|
Hemp Diapers |
No |
|
Inhaler |
No |
|
Nasal Spray |
No |
|
Oral Drops |
No |
|
Patch |
No |
|
Pills |
No |
|
Seed Milk |
No |
|
Tinctures |
No |
|
Superfood Supplement |
No |
|
Hemp Fuel |
No
(may be subject to alternative fuels) |
|
Rope |
Yes |
|
CBD/Hemp mixed with beer |
Yes |
|
CDB/Hemp to be smoked or vaped |
Yes* |
|
Hemp Flower for smoking |
Yes* |
|
Hemp Paper |
Yes |
|
HempCrete |
Yes |
|
liquid CBD/Hemp premixed with water |
Yes |
|
Lotions and Creams |
Yes |
|
Post Recovery Drink |
Yes |
|
Protein Power |
Yes |
|
Soap |
Yes |
|
Sunscreen |
Yes |
|
Supplement (Pets) |
Yes |
*Subject to Other Tobacco Products Tax