CBD Products Subject to Tax in Louisiana, Effective January 1, 2020

Effective January 1, 2020, sales of industrial hemp-derived CBD (cannabidiol) products are subject to a 3% Louisiana excise tax. The excise tax will apply in addition to Louisiana state and local sales and use tax and any other tax. The excise tax should be reported monthly by the retailer and paid by the retailer on or before the 20th of the month following the month in which the tax is applicable. Industrial hemp-derived CBD product means any industrial hemp- derived product that contains CBD intended for consumption or topical use. For purposes of imposition of the tax, “retailer” also includes any person or entity that imports or causes to be imported from any other state industrial hemp-derived CBD products for use or consumption. The excise tax will not apply to any CBD product that has been approved for marketing as a prescription medication by the U.S. Food and Drug Administration or that is recommended for therapeutic use. The excise tax only applies to retail sale or transfer of industrial hemp-derived CBD to a consumer for any purpose other than resale which includes processing the CBD into other products. (Act 247 (H.B. 560), Laws 2019)

Posted on June 27, 2019