Medical Cannabis Taxation
There are two taxes associated with the sale of medical cannabis. Applicants will be required to obtain applicable tax permits as part of the application process.
- Medical cannabis cultivators are subject to a 5% excise tax on the first sale/transfer of medical cannabis.
- Excise tax is due if the cultivator sells to a processing facility.
- Excise tax is due on the transfer of cannabis between related entities.
- Medical cannabis dispensaries will charge the standard 7% sales tax to cardholders at the point of sale. Dispensaries will also be responsible for special tax levies in the cities of Jackson & Tupelo.
A sales tax account and permit will be required by medical cannabis cultivators and medical cannabis processors if making sales of tangible personal property (i.e. medical cannabis) (MS Code Ann §27-65).
A direct pay permit may be required by medical cannabis processors if the processor is manufacturing a medical cannabis product.
For more information regarding Sales Tax, click here.
Applicable Income tax or Withholding tax may be due for any medical cannabis establishments under this program including those licensed by the Mississippi Department of Health.
All taxes collected must be remitted to the Mississippi Department of Revenue. You may register for a cannabis excise tax account on TAP.
Medical Cannabis Excise Tax Regulation
Medical Cannabis Establishment Sales Tax Regulation
Fair Market Values for Cannabis Excise Tax
Fair Market Value Notice for January 1, 2024 to June 30, 2024 Notice of Fair Market Values for Cannabis Excise Tax.
Fair Market Value Notice for July 1, 2023 to December 31, 2023 Notice of Fair Market Values for Cannabis Excise Tax.
Fair Market Value Notice for January 1, 2023 to June 30, 2023 Notice of Fair Market Values for Cannabis Excise Tax.
Fair Market Value Notice for July 1, 2022 to December 31, 2022 Notice of Fair Market Values for Cannabis Excise Tax.
Sales Or Transfers From A Cultivation Facility To A Medical Cannabis Establishment
A 5% excise tax shall be applied to the sales price of a cultivation facility’s first sale or transfer of cannabis flower or cannabis trim to a medical cannabis establishment.
Sales Or Transfers From A Cultivation Facility To A Medical Cannabis Establishment With Common Ownership
The 5% excise tax shall be calculated using the fair market value of the cannabis flower or cannabis trim on the first sale or transfer of cannabis flower or cannabis trim to a medical cannabis establishment having common ownership with the cultivator. The fair market value is only used when the cultivator shares common ownership with the medical cannabis establishment.
The fair market value of medical cannabis flower and medical cannabis trim is set by the Department for the purposes of levying the cannabis excise tax pursuant to Miss. Code Ann. Section 27-72-1(2)(b) on the first sale or transfer of medical cannabis flower or medical cannabis trim between cultivators and other common ownership medical cannabis establishments. MS Administrative Code 35.VIII.4.01
The fair market values effective January 1, 2024 through June 30, 2024 are as follows:
|
Category |
Fair Market Value |
|
Flower sold to common interest establishment |
$1,428 per lb |
|
Trim sold to common interest establishment |
$164 per lb |
The fair market values effective July 1, 2023 through December 31, 2023 are as follows:
|
Category |
Fair Market Value |
|
Flower sold to common interest establishment |
$1,610 per lb |
|
Trim sold to common interest establishment |
$230 per lb |
The fair market values effective January 1, 2023 through June 30, 2023 are as follows:
|
Category |
Fair Market Value |
|
Flower sold to common interest establishment |
$3,200 per lb |
|
Trim sold to common interest establishment |
$640 per lb |
The fair market values effective July 1, 2022 through December 31, 2022 are as follows:
|
Category |
Fair Market Value |
|
Flower sold to common interest establishment |
$3,200 per lb |
|
Trim sold to common interest establishment |
$640 per lb |
MDOR shall recalculate and adjust the fair market value of cannabis flower and cannabis trim twice per calendar year on January 1 and July 1.
If you have any questions, please contact the Sales Tax Department at 601-923-7015.
Sales Tax Permit Application
Register for a Sales Tax account and apply for a permit on TAP. This process could take up to three weeks, so please apply at your earliest convenience. To complete an application for a dispensary license, you must have FIRST received a sales tax permit ID.
When applying, use the following NAICS codes:
|
Type of Licensure |
NAICS Code |
|
Cultivator/Grower |
111419 |
|
Processor/Wholesaler |
424590 |
|
Transporter (local freight) |
484220 |
|
Transporter (long distance) |
484230 |
|
Testing Facility |
621511 |
|
Dispensary |
455219 |
|
Waste Disposal |
562211 |