Tax rates for sales of adult-use cannabis products prior to June 1, 2024
For sales of adult-use cannabis products by distributors to retailers made prior to June 1, 2024, tax is imposed at the following rates:
- five-tenths of one cent ($0.005) per milligram of the amount of total THC for cannabis flower;
- eight-tenths of one cent ($0.008) per milligram of the amount of total THC for concentrated cannabis; and
- three cents ($0.03) per milligram of the amount of total THC for cannabis edible product.
Retail sales of adult-use cannabis products are subject to retail taxes totaling 13% of the amount charged for the sale or transfer.
Definitions
Cannabis edible product means a product containing either cannabis or concentrated cannabis and other ingredients, intended for use or consumption through ingestion, including sublingual or oral absorption.
Cannabis flower means the flower of a plant of the genus Cannabis that has been harvested, dried and cured but has not undergone any processing whereby the plant material is transformed into a concentrate, including but not limited to, concentrated cannabis, or into an edible or topical product containing cannabis or concentrated cannabis and other ingredients. Cannabis flower excludes leaves and stem.
Concentrated cannabis means the separated resin, whether crude or purified, obtained from cannabis; or a material, preparation, mixture, compound or other substance which contains more than 3% by weight or by volume of total THC.
THC means Delta-9-tetrahydrocannabinol; Delta-8-tetrahydrocannabinol; Delta-10-tetrahydrocannabinol; and the optical isomer of such substances.
Total THC means the sum of the percentage by weight or volume measurement of tetrahydrocannabinolic acid multiplied by 0.877, plus the percentage by weight or volume measurement of THC.
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