201506.17

Texas Legalizes Medicinal Marijuana

by Chanel Christoff Davis in State Sales Tax Laws, States, Texas

TEXAS– On June 1^st, the final day of Texas’ 84^th legislature, Governor Greg Abbott signed a bill into law that allows the sale of medicinal marijuana. The marijuana is in the form of an oil extract used for the treatment of certain forms of epilepsy. The oil will only be allowed for patients who have tried at least 2 other medications for epilepsy unsuccessfully and who have the approval of 2 doctors. Cannabis oil will be regulated and distributed by the State. Texas joins 14 other states with limited marijuana oil allowances as well as 23 other states that have a boarder laws for the use of medicinal marijuana.

According to the Texas Comptroller’s controlled substances website, marijuana will be taxed at the rate of $3.50 per gram, with a 4 oz. minimum. Tax is due when the dealer imports, manufactures, produces, acquires, and/or possesses a controlled substance.

About Davis & Davis LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis & Davis LLC – Sales Tax Experts 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 Davis & Davis 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!