Frequently Asked Questions
Industrial Hemp-Derived CBD
What is an Industrial Hemp-Derived CBD product?
Any industrial hemp-derived product that contains cannabidiol (CBD) and is intended for consumption or topical use. Industrial hemp is any part of a Cannabis Sativa plant with a delta-9 tetrahydrocannabinol (THC) concentration of no more than 0.3 percent on a dry basis and may include any of the following:
- The seeds or any derivatives
- Salts and Salt Isomers (growing or not)
Hemp is cultivated and processed in accordance with the United States Agriculture Improvement Act of 2018 in compliance with the U.S. Department of Agriculture rules.
Industrial hemp does not include plants of the Genus Cannabis that meet the definition of "marijuana" as defined in LA R.S. 40:961.
How much is the Industrial Hemp-Derived CBD Tax?
Industrial hemp-derived CBD products are taxed at 3% (.03) of the gross retail sales price.
*The excise tax is in addition to any Louisiana state and local sales and use taxes, or any other tax. *
What is the effective date of the Industrial Hemp-Derived CBD Tax?
The industrial hemp-derived CBD tax was effective January 1, 2020 through July 31, 2021. Beginning August 1, 2021, these products are subject to the consumable hemp products tax.
Who is required to pay the Industrial Hemp-Derived CBD Tax?
CBD tax is an excise tax imposed on and owed directly by the retailer. It is not collected from the retail customers.
For purposes of the CBD tax, retailers include any and all persons, corporations, partnerships, limited liability companies (LLCs) or other organizations who sell or offer for sale industrial hemp-derived CBD products at retail.
Any person who imports industrial hemp-derived CBD products into this state for use or consumption is also a retailer for purposes of the CBD tax and must pay the excise tax. This includes anyone who purchases these products online.
Do I have to have a permit to sell Industrial Hemp-Derived CBD products?
Yes. Anyone who sells or who will engage in the business of selling industrial hemp-derived CBD products at retail is required to apply for and obtain a permit from the Office of Alcohol and Tobacco Control (ATC) for each place of business and each individually registered domain name owned or leased by or on behalf of a remote CBD retailer.
Who should I contact regarding instructions on obtaining and/or renewing my CBD permit?
Please contact the Office of Alcohol & Tobacco Control (ATC) at 225-925-4041 or visit their website at https://atc.louisiana.gov.
Who files the Industrial Hemp-Derived CBD Tax Return?
Retailers who sold any industrial hemp-derived CBD products between January 1, 2020 and July 31, 2021 and anyone who imported these products into Louisiana for use or consumption during that period must complete an Industrial Hemp-Derived CBD Tax Return. For periods beginning on or after August 1, 2021, taxpayer must complete a Consumable Hemp Products Tax Return.
How do I file the Industrial Hemp-Derived CBD Return and remit payment?
All Industrial Hemp-Derived CBD Tax returns and payments must be submitted electronically through the Louisiana Taxpayer Access Point (LaTap) system. Retailers must report and remit all CBD tax on a monthly basis by the 20th of the month following the reporting period. Beginning August 1, 2021, Industrial Hemp-Derived CBD Tax returns for periods January 1, 2020 through July 31, 2021 can be accessed under the Consumable Hemp Products Tax account.
To create a LATAP account, please visit www.revenue.louisiana.gov/LATAP. Once a LATAP account is created, taxpayers who do not have a LDR account number can register for a business account.
Do I need to create an Industrial Hemp-Derived CBD account if I currently have a LATAP account for Sales and Withholding Tax Types?
Yes. An Industrial Hemp-Derived CBD account is required in addition to any other account(s) previously registered in LaTAP. Act 336 of the 2021 Regular Session changed the name of the tax to Consumable Hemp Product Tax. Accounts created after August 1, 2021 will use the Consumable Hemp Products Tax account type. However, for periods January 1, 2020 through July 31, 2021 the return accessed through LaTAP will be the Industrial Hemp-Derived CBD Tax Return.
Can I file the Industrial Hemp-Derived CBD Tax with my Sales Tax account?
No. An Industrial Hemp-Derived CBD Tax account is required. (As of August 1, 2021, the account type is named Consumable Hemp Products Tax.)
How do I add an Industrial Hemp-Derived CBD Tax account to my current LATAP account?
Log into LaTAP, select Consumable Hemp Products Tax as the account type and follow the prompts. For periods January 1, 2020 through July 31, 2021, the return accessed through LaTAP will be the Industrial Hemp-Derived CBD Tax Return. For additional assistance with LaTAP visit www.revenue.louisiana.gov/FAQ and select “LaTAP”.
What date do I use for "Date Site began operations”?
The date when the site began selling CBD products.
Do I have to complete a return if I did not sell any Industrial Hemp-Derived CBD products?
Yes. Monthly returns must be filed reporting zero gross sales if no CBD products were sold.
Can multiple locations be reported on one Industrial Hemp-Derived CBD Tax Return?
Yes, multiple sites (or locations) can be reported on a consolidated return. The total gross retail sales for each location is reported separately on Schedule A.
Is ACH Credit accepted for the Industrial Hemp-Derived CBD Tax?
An Authorization Agreement for ACH Credit Tax Payments is needed for the ACH Credit option. Any further questions can be referred to the Louisiana Department of Revenue, Central Registration Unit at CentralReg@La.Gov.
What type of Industrial Hemp-Derived CBD products are not subject to the tax?
Sales of industrial hemp-derived CBD products for further processing into a product produced in accordance with LA R.S. 40:1046 (marijuana for therapeutic use) is not a retail sale for purposes of this tax.
Additionally, any CBD product recommended in accordance with LA R.S. 40:1046 and any industrial hemp-derived CBD product approved as a prescription medication by the United States Food and Drug Administration is not subject to the industrial hemp-derived CBD tax.
What Industrial Hemp-Derived products are prohibited?
LA R.S. 3:1482 prohibits the processing or sale of
- any part of hemp for inhalation, except hemp rolling papers
- any alcoholic beverage containing CBD
- any food product or beverage containing CBD unless the United States Food and Drug Administration approves CBD as a food additive in Louisiana.
However, because these products are included in the definition of industrial hemp-derived CBD products for purposes of the excise tax, the CBD tax is due and must be paid if the product is sold at retail in Louisiana or imported for consumption.
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