Tax regulations

US Tax Regulations for Vaping Products Intended for Pulmonary Delivery of Cannabinoids – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The report “Tax Regulation in the US for Vaping Products Intended for Pulmonary Delivery of Cannabinoids” has been added to from ResearchAndMarkets.com offer.

The Tax Regulation report provides a detailed analysis and comparison of the existing tax systems in each state in the United States in relation to cannabis vaping products. The report includes a comprehensive list of definitions of cannabis, hemp, cannabis vaping products, tax rules in each state, and additional visual data tables to understand tax burden and end-user pricing information. .

This report will be useful to existing and new brands, manufacturers, distributors, and market analysts engaged in the cannabis business in the United States. In the report, sales, excise and special taxes and the calculated tax burden for different categories of vaping products are examined.

Major product categories, which have been analyzed in this report based on tax burden and end-user price, are:

  1. Pre-filled pods and 510 cartridges, pre-filled disposable products (closed systems) containing CBD/THC cannabinoids;

  2. Bottled CBD e-liquid;

  3. Blend of THC/CBD in bottle E-liquid;

  4. Empty vaporizers, vaporizer batteries and vaporizer parts (open systems).

  5. CBD-derived products: hemp flowers, oils.

Currently, there are no common federal taxes for cannabis products, although the legislation is under review. The main characteristics of the cannabis trade in the United States are strict regulations and high taxation. Government taxes imposed on cannabis vaping products vary widely due to the gradual legalization of cannabis from state to state for various purposes. Each state has developed its own independent taxation systems for cannabis products, attention should be paid to the definitions applied and the categories of products included therein.

Cannabis products and related devices are subject to excise duties (wholesale and retail), state and local sales taxes.

Excise taxes

Excise taxes are imposed on medical cannabis (13 states and District of Columbia); recreational cannabis (15 states); CBD derived from hemp (Louisiana). Five other states have agreed to implement excise taxes on recreational cannabis over the next few years. Two states have recently levied excise duties on medical cannabis (effective January 1, 2022).

State sales taxes

  • State sales taxes are levied for medical cannabis (19 states and District of Columbia); recreational cannabis (17 states); Hemp-derived CBD and related devices (all states).

  • The highest tax regime is applied to recreational cannabis products, with tax rates varying widely from state to state (average value is around 22%).

  • End product taxes for medical cannabis are not enforced in many states. Empty appliances and parts are taxed as tangible property and are taxed at the ordinary tax rate.

Main topics covered:

  1. Summary

  2. Upcoming Changes to US Excise Taxes on Cannabis Products

  3. Taxation imposed on cannabis products in the United States

  4. Taxation imposed on cannabis vaping devices in the United States

  5. U.S. Sales Taxes by Cannabis Product Categories

For more information on this report visit https://www.researchandmarkets.com/r/hrmpmz

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