A 10% excise tax applies to the retail sales price of consumable hemp products, and retailers must show and charge it separately; monthly returns are also required.
(a) An excise tax at the rate of 10 percent is levied on the retail sales price of consumable hemp products. The tax is in addition to any other tax imposed by federal, state, or local law. (b) The tax levied by this section is intended to be passed on to and borne by the purchaser of the consumable hemp product. The tax is a debt from the purchaser to the retailer until paid. The retailer is considered to act as a trustee on behalf of the board when the retailer collects the tax from the purchaser on a taxable transaction. The tax must be stated and charged separately on any documentation provided to the purchaser by the retailer at the time of the transaction. (c) The tax levied during the preceding month is due and payable monthly to the board on the first day of each month, and for the purpose of ascertaining the amount of tax payable under this section, all retailers making taxable sales on or before the twentieth day of each month shall transmit to the board, upon forms prescribed by the board, returns showing gross sales during the preceding month. (d) The revenue generated from the tax shall be distributed as follows: (1) Ninety percent to the State General Fund. (2) Ten percent to the treasury of the municipality in which the consumable hemp products were sold within its corporate limits, or, where sold outside the corporate limits of any municipality, to the treasury of the county in which the consumable hemp products were sold, for the purposes of enforcement. (e) The taxes levied pursuant to this section are exclusive and shall be in lieu of all other and additional taxes and licenses of the state, county, or municipality imposed on the sale of consumable hemp products; provided, that nothing in this section shall be construed to exempt the retail sale of consumable hemp products from the levy of tax on general retail sales by the state, county, or municipality in the nature of, or in lieu of, a general sales tax. (f) If the board or any authorized agent of the board finds any unlawful hemp product sold at a retailer establishment, the product shall be confiscated and, in addition to all other penalties authorized by law, the board shall assess taxes based on an excise tax at the rate of 10 percent of the retail value of the illegal product.