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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 PowderNo
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