Connecticut Sales Tax on Medical Marijuana

The Connecticut Department of Revenue has issued a bulletin detailing the tax implications of new medical marijuana legislation (SN 2012(5)). 

Sales and Use Tax Implications 

Medical marijuana sales by licensed dispensaries are subject to Connecticut sales and use tax. They do not qualify for the prescription medicine tax exemption.

However, "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." Under this exemption, tangible personal property purchased for exclusive use in agricultural production is exempt from Connecticut sales and use tax.

Marijuana and Controlled Substances Tax Implications

Anyone in lawful possession of marijuana, including physicians, patients, primary caregivers, producers and dispensaries will not be subject to the marijuana and controlled substances tax. However, ". . . anyone not in lawful possession of marijuana would be subject to the tax, in addition to other penalties."