Summary: Starting from July 1, Tennessee will impose a 6% “privilege” sales tax on products containing hemp-derived cannabinoids, including CBD as well as delta-8 and delta-9 THC. This tax will be on top of the standard state sales tax rate of 7%. Tennessee is one of the few remaining states in the U.S. without legal access to adult-use or medical marijuana, which has spurred demand for products containing hemp-derived cannabinoids. Sellers are now required to obtain state licenses and adhere to product-testing standards, and buyers must be at least 21 years old.
Tennessee to impose 6% “privilege” sales tax on hemp-derived products
Starting from July 1, Tennessee will impose a 6% “privilege” sales tax on products containing hemp-derived cannabinoids, including CBD as well as delta-8 and delta-9 THC. This tax will be on top of the standard state sales tax rate of 7%, as announced by the state Department of Revenue.
Tennessee is one of the few remaining states in the U.S. without legal access to adult-use or medical marijuana. This lack of access has spurred demand for products containing hemp-derived cannabinoids, which will all be subject to the new tax.
Earlier this year, Tennessee joined the list of states regulating products derived from hemp, which was legalized at the federal level in 2018 farm-bill. Now, sellers are required to obtain state licenses and adhere to product-testing standards. Additionally, buyers must be at least 21 years old, and there are packaging limitations in place to reduce appeal to children.
This move by Tennessee reflects the state’s efforts to regulate and tax the burgeoning hemp-derived cannabinoid market within its borders. It also underscores the ongoing complexities and variations in cannabis laws across different U.S. states.
[Source: MJBizDaily]
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