Low THC products sold to qualifying patients

From the 2024 DOR Tax Exemption Study

82.08.9998(1)(b); 82.12.9998 - Low THC products sold to qualifying patients Description Sales of cannabis products containing THC with a THC concentration of 0.3% or less are exempt from sales and use taxes. This exemption applies only when retailers with medical cannabis endorsements sell to patients or designated providers who have cannabis recognition cards. 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 $0.046 $0.046 $0.046 $0.046 Local Taxes $0.021 $0.021 $0.021 $0.021 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.042 $0.046 $0.046 Local Taxes $0.000 $0.019 $0.021 $0.021 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. - Qualifying THC products are about 5% of medical cannabis sales. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. Data Sources - Department of Revenue, Excise t