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.

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