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Utah Imposes Cannabidiol Product Tax


Utah- Cannabidiol products will be charged a 5.77% cannabidiol tax for retail purchases from a qualified pharmacy. The tax will go into effect July 1, 2019, or sooner if the Controlled substance Act allows the Department of Agriculture and Food receive a federal waiver.

A cannabidiol product is a chemical compound extracted from a hemp product that is processed into a medicinal dosage form, contains not more than 10:1 ratio of cannabidiol to tetrahydrocannabinol after processing, and contains less than 0.3% tetrahydrocannabinol by weight before processing.

A “qualified pharmacy” are those who sell the cannabidiol at retail to patients that have written recommendations from a physician. The qualified pharmacies must collect tax from the purchaser, file a quarterly or monthly return with the State Tax Commission and submit the tax with the return, and maintain records necessary to determine the amount of tax collected.

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts (DDH LLC) specializes in sales/use tax audit consulting and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At DDH LLC we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.

For sales/use tax compliance questions or audit-related concerns, we are here to help!

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