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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