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State to Tax Medical Marijuana

The sales and use tax exemption for prescription medicine will not apply, according to the state Department of Revenue Services.

You had to know that this was coming.

With the passage of the legalization of the sale of medical marijuana, the state Department of Revenue Services has now released guidelines on how those sales will be taxes.

"Sales of marijuana by licensed dispensaries will be subject to sales and use taxes; the sales and use tax exemption for prescription medicine will not apply," the department says in its special notice.

That means all medical marijuana sales will be subject to the state's 6.35 percent sales tax, CT News Junkie reports. But even illegal sales of pot are subject to that tax, the news website says -- that's been a law since 1991.

Gov. Dannel P. Malloy signed the bill into law in June legalizing the sale of marijuana for medical uses after a lengthy debate as to the advantages of using the drug to treat conditions such as glaucoma. 

On Oct. 1, the law went into effect and a system of online registration was established for those eligible to purchase it legally. Malloy said he wants to make sure that only those truly qualify for it are able to get it.

The new law also opened up entrepreneruial opportunities for those interested in growing the medical marijuana, prompting the formation of the Connecticut Medical Cannabis Business Alliance.

Anne K. Mulligan December 19, 2012 at 01:58 PM
If it's considered medicine, why should it be taxed when other medicines are not?
Robert Martin December 19, 2012 at 03:43 PM
If anyone is looking to capitalize on this issue, I currently control many domains related and am selling them off. MARIJUANATAXLAW.com is available for sale! RobertsDomains.com

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