More and more states are legalizing medical or recreational marijuana, but the laws vary from state to state.
Specific legislation around hemp, marijuana, and CBD is constantly evolving. Louisiana passed legislation earlier this year and the Department of Revenue will implement a industrial hemp-derived Cannabidiol tax (“CBD tax”) beginning January 1, 2020.
Louisiana will impose a 3% excise tax (“CBD tax”) on retailers of industrial hemp-derived CBD products. Any person who imports industrial hemp-derived CBD products for use or consumption (rather than for resale) will be considered a retailer and will be liable for the CBD tax.
Retailers of industrial hemp-derived CBD products will also be responsible for collecting state and local sales taxes for the retail sales of industrial hemp-derived CBD products to customers.
For more information regarding Louisiana state and local tax law, reach out to Gwen.Evans@ryanwestllc.com or via phone 214.706.9181.
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Revenue Information Bulletin No. 19-024
December 18, 2019
Industrial Hemp-Derived CBD Tax