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 Powder | No |
|
Soap |
Yes |
|
Sunscreen |
Yes |
|
Supplement (Pets) |
Yes |
*Please note, this list is not a representation as to the legality of the products. Under current federal and state law, it is unlawful to sell for human consumption any food, nutritional or dietary supplement, candy, chewing gum or beverage containing CBD as an additive.
**Also subject to Other Tobacco Products Tax