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