Marijuana Taxes | File

Sales Taxes
NEWRetail Marijuana Sales Tax Changes -- Fact Sheet (effective July 1, 2017)
Note: We are revising our webpages and FYIs to reflect the new changes noted in the fact sheet above. More information will be available on this webpage soon. Updates to the information and links below will also be updated soon.

  • State Sales Tax: The state sales tax rate on all tangible personal property, including marijuana, is 2.9%. These taxes are charged on the final consumer purchase price. As of July 1, 2017, retail marijuana and retail marijuana products will be exempt from state sales tax. The tax will still apply to medical marijuana and medical marijuana products.
  • Local and Special Districts Tax Rates: See the DR 1002 for current and applicable rates.
  • State Retail Marijuana Sales Tax Rate: There is a 10% retail marijuana sales tax on all sales of retail marijuana and retail marijuana-infused products in the state charged on the final consumer purchase price. As of July 1, 2017, this tax rate will increase from 10% to 15%.

Excise Tax
Excise tax is imposed on the first sale or transfer from a retail marijuana cultivation facility to a retail marijuana store, retail marijuana product manufacturing facility or to another retail marijuana cultivation facility. Medical marijuana is not subject to the 15% state retail marijuana excise tax. 

State Retail Marijuana Excise Tax Rate: Retail marijuana is subject to a 15% excise tax on the average market rate of retail marijuana. The excise tax is based on the average market rate for bud, trim, wet whole plant, immature plants, and seeds. One marijuana excise tax return is required for each stand alone location (retail marijuana only). 

Due to recent statutory requirements resulting from Senate Bill 17-192, and beginning on August 9, 2017, there will be changes to the definition of the Average Market Rate (AMR), regarding how the excise tax on retail marijuana is calculated and how frequently the AMR is recalculated. Effective August 9, 2017: Affiliated retail marijuana business will continue to calculate their excise tax at 15% of the AMR. However, unaffiliated retail marijuana business will calculate their excise tax at 15% of the contract rate. SeeRetail Marijuana Excise Tax Calculation Changes and AMR Frequency Fact Sheet. Note: We are revising our webpages and FYIs to reflect the new changes noted in the fact sheet. More information will be available on this webpage soon. Updates to the information and links below will also be updated soon.