Medical cannabis sold to qualifying patients

From the 2024 DOR Tax Exemption Study

82.08.9998(1)(a); 82.12.9998 - Medical cannabis sold to qualifying patients Description Sales of cannabis products identified by the Department of Health as beneficial for medical use by retailers with medical cannabis endorsements are exempt from sales and use taxes if the sales are to patients or designated providers who have cannabis recognition cards. The Department of Health identifies these cannabis products as compliant cannabis products. Purpose To exempt medically beneficial cannabis from sales and use taxes. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.877 $0.877 $0.877 $0.877 Local Taxes $0.394 $0.394 $0.394 $0.394 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.804 $0.877 $0.877 Local Taxes $0.000 $0.362 $0.394 $0.394 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth is minimal therefore annual amounts remain constant. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. Data Sources - Department