Frequently Asked Questions
Consumable Hemp Products
What is a Consumable Hemp Product?
Any product derived from industrial hemp that contains any cannabinoid, including cannabidiol (CBD), and is intended for consumption or topical use, including commercial feed, pet products, and hemp floral material. Industrial hemp is any part of a Cannabis sativa L. plant with a total delta-9 tetrahydrocannabinol (THC) concentration of no more than 0.3 percent on a dry weight basis and may include any of the following, whether growing or not:
- The seeds
- All derivatives of the seeds
- Salts of Isomers
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 RS 40:961.
How much is the Consumable Hemp Product Tax?
Consumable hemp 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 Consumable Hemp Product Tax?
The consumable hemp product tax is effective for taxable periods beginning on or after August 1, 2021. However, the industrial hemp-derived CBD tax was effective for periods beginning on or after January 1, 2020 and ending on or before July 31, 2021. More information on the industrial hemp-derived CBD tax can be found at here.
Who is required to pay the Consumable Hemp Product Tax?
The consumable hemp product 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 consumable hemp product tax, retailers include any and all persons, corporations, partnerships, limited liability companies (LLCs) or other organizations who sell or offer for sale consumable hemp products at retail.
Any person who imports consumable hemp products into this state for use or consumption is also a retailer for purposes of the consumable hemp product tax and must pay the excise tax on any products for which the tax was not paid by the seller. This includes anyone who purchases these products online.
Do I have to have a permit to sell Consumable Hemp Products?
Yes. Each wholesaler and anyone who sells or who will engage in the business of selling consumable hemp products at retail is required to apply for and obtain a permit from the Office of Alcohol and Tobacco Control (ATC). Retailers must obtain a license for each place of business and each individually registered domain name owned or leased by or on behalf of a remote consumable hemp product retailer.
Who should I contact regarding instructions on obtaining and/or renewing my consumable hemp 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 Consumable Hemp Product Tax Return?
Retailers who sell any consumable hemp products and anyone who imports these products into Louisiana for use or consumption must complete a Consumable Hemp Product Tax Return.
How do I file the Consumable Hemp Product Return and remit payment?
All Consumable Hemp Product Tax returns and payments must be submitted electronically through the Louisiana Taxpayer Access Point (LaTap) system. Retailers must report and remit all consumable hemp product tax on a monthly basis by the 20th of the month following the reporting period.
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 a consumable hemp product account if I currently have a LaTAP account for Industrial Hemp-Derived CBD tax type?
No. Because Act 336 of the 2021 Regular Legislative Session changed the name of the Industrial Hemp-Derived CBD tax to Consumable Hemp Products tax, no action is needed on your part to be registered to file. The name is being changed in LaTAP. Your account number will remain the same and your filing history will remain available. You will need to report the sales of consumable hemp products beginning with the August 2021 period, which includes the industrial hemp-derived products you reported previously.
Do I need to create a consumable hemp product account if I currently have a LATAP account for Sales and Withholding Tax Types?
Yes. A consumable hemp product account is required in addition to any other account(s) previously registered in LaTAP.
Can I file the Consumable Hemp Product Tax with my Sales Tax account?
No. A Consumable Hemp Product Tax account is required.
How do I add a Consumable Hemp Product Tax account to my current LATAP account?
What date do I use for "Date Site began operations”?
The date when the site began selling consumable hemp products.
Do I have to complete a return if I did not sell any consumable hemp products this month?
Yes. Once registered for this account type, monthly returns must be filed. If no consumable hemp products are sold in a given month, the return should report zero gross sales.
Can multiple locations be reported on one Consumable Hemp Product 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 new Consumable Hemp Product 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 consumable hemp products are not subject to the tax?
Sales of consumable hemp product 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 consumable hemp product recommended in accordance with LA R.S. 40:1046 and any consumable hemp product approved as a prescription medication by the United States Food and Drug Administration is not subject to the consumable hemp product tax.
What Consumable Hemp Products are prohibited?
LA R.S. 3:1482 prohibits the sale of any part of hemp for inhalation, except hemp rolling papers, and prohibits the processing and sale of alcoholic beverages containing CBD.
However, because these products are included in the definition of consumable hemp product for purposes of the excise tax, the consumable hemp product tax is due and must be paid if the product is sold at retail in Louisiana or imported for consumption.
When I view returns for taxable periods prior to August 2021, why do I see the Consumable Hemp Products Tax Return?
Because the name of the tax changed pursuant to Act 336 of the 2021 Regular Legislative Session, the name of the return has changed. However, you will see that line 1 of the return for periods prior to August 2021 still shows the Industrial Hemp-Derived CBD products, which are all that are required to be reported for those periods. Even though the name of the return has changed, your information for all prior filings remains the same.
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