Cannabis Retailers and Distributors: Cannabis Accessories That Do Not Contain
Cannabis Are Not Subject to the Cannabis Excise Tax
Cannabis accessories such as pipes, pipe screens, vape pens and vape pen batteries (without cannabis), rolling papers, and grinders are not subject to the 15 percent cannabis excise tax. However, as a cannabis retailer, your retail sales of cannabis accessories are subject to sales tax and must be reported on your sales and use tax return.
You may purchase cannabis accessories that you plan to sell in your business from your vendor/supplier for resale. You may issue a resale certificate to your vendor to buy cannabis accessories or other property you will sell in your regular business operations prior to making any use of the product.
For more information on using a resale certificate, see publication 103, Sales for Resale.
Vape Pen Batteries Sold With Cannabis
Cannabis accessories such as vape pen batteries sold in preassembled units may include cannabis. If you are a cannabis distributor who sells these preassembled units with cannabis, you should separately list the retailer’s cost of the cannabis on your invoice to the retailer in order to properly apply the excise tax to the cannabis only.
The Bureau of Cannabis Control (BCC) regulates the activities of distributors and retailers. You should contact the BCC to determine if the sale of a specific accessory or item is an allowable activity.
Products that Contain Cannabis
As a reminder, the retail sale of cannabis and products containing cannabis are subject to the 15 percent cannabis excise tax and, unless an exclusion or exemption is applicable, are also subject to the sales tax. Cannabis products include items such as pre-rolls, oils, edibles (cookies, butters, candies, sodas, etc.), topicals, waxes, and balms.