Tennessee Implements 6% Sales Tax on Hemp-Derived Cannabinoid Products as of July 1

NASHVILLE– Tennessee residents purchasing products containing hemp-derived cannabinoids, including CBD, delta-8 THC, delta-9 THC, and delta-10 THC, will soon face an additional 6% “privilege” sales tax starting July 1. The state’s Department of Revenue has announced this tax, which will be levied on top of the existing standard state sales tax rate of 7%.

Tennessee stands as one of the few remaining states in the United States that has yet to establish legal access to either adult-use or medical marijuana. As a result, the demand for products containing hemp-derived cannabinoids has soared, leading to the implementation of this new tax.

Earlier this year, Tennessee joined the ranks of states regulating products derived from hemp, which was federally legalized in 2018. Sellers are now required to obtain state licenses and comply with product-testing standards, ensuring consumer safety and product quality. Additionally, buyers must be at least 21 years old, and there are strict limitations on packaging aimed at minimizing appeal to children.

The introduction of this sales tax is part of the state’s effort to regulate and control the growing market for hemp-derived cannabinoid products. By imposing this tax, Tennessee aims to generate revenue while monitoring and overseeing the distribution and consumption of these products.

As the hemp industry continues to evolve, it is crucial for consumers and businesses alike to stay informed about the changing regulatory landscape and compliance requirements. The implementation of this sales tax highlights Tennessee’s ongoing commitment to ensuring the responsible growth and utilization of hemp-derived cannabinoids within its borders.