Cannabis with low THC-high CBD ratio

From the 2024 DOR Tax Exemption Study

82.08.9998(1)(c); 82.12.9998 - Cannabis with low THC-high CBD ratio Description Sales of cannabis products identified by the Department of Health to have a low THC, high CBD ratio and to be beneficial for medical use are exempt from sales and use taxes. This exemption applies only when retailers with medical cannabis endorsements sell to those who can legally purchase cannabis. 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 $0.065 $0.065 $0.065 $0.065 Local Taxes $0.029 $0.029 $0.029 $0.029 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.060 $0.065 $0.065 Local Taxes $0.000 $0.027 $0.029 $0.029 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 of Revenue, Excise tax data Additional Additional Information Informa