Weed Will Be Taxed
The Connecticut Department of Revenue Services recently released its guidance regarding the sale of medical marijuana in the state and determined it will be subject to the 6.35 percent sales tax.
“Sales of marijuana by licensed dispensaries (see below) will be subject to sales and use taxes; the sales and use tax exemption for prescription medicine will not apply,” DRS said in its guidance letter. “Licensed dispensaries may purchase the marijuana from licensed producers on a resale basis.”
“Licensed producers may be able to claim a sales tax exemption under the provision commonly called the farmer tax exemption. This exemption allows entities engaged in agricultural production as a trade or business to be exempt from the sales and use tax for purchases of tangible personal property used exclusively for agricultural production,” the letter says.
Of course, marijuana already is subject to a tax in Connecticut.
There’s been a law on the books allowing a tax on marijuana and other illegal drugs since 1991.
According to the Department of Revenue Services the tax on illegal drugs brought in $33,609 in 2011. The department estimates that many of the people buying the tax stamps used to impose the tax are actually stamp collectors looking to round out their collections.
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