Tennessee to impose 6% tax on CBD, delta-8 THC products

Wondering where hemp-derived cannabinoids are legal in the United States? Check out MJBizDaily‘s new delta-8 THC map.

Products containing hemp-derived cannabinoids sold in Tennessee will be subject to a 6% “privilege” sales tax beginning July 1.

That’s on top of the standard state sales tax rate of 7%, the state Department of Revenue announced.

Tennessee is one of the few remaining states in the U.S. without legal access to adult-use or medical marijuana.

That’s helped create demand for products containing hemp-derived cannabinoids, including CBD as well as delta-8 and delta-9 THC – all of which will be subject to the new tax.

Products containing delta-10 THC also will fall under the tax.

Earlier this year, Tennessee became one of the latest states to regulate products derived from hemp, which federal law legalized in 2018.

Sellers must now obtain state licenses and abide by product-testing standards.

Buyers must also be 21 or older, and there are limitations on packaging meant to limit appeal to children.