Retail outlets should be charging sales tax on products made from the hemp-extract cannabidiol, the Vermont Department of Taxes said in a recent ruling.
Ceres Natural Remedies, a CBD retailer with locations in Burlington and Brattleboro, queried the tax department about the issue after some initial confusion.
“We wanted to make sure we were doing everything in accordance with the law,” David Mickenberg, a lawyer representing Ceres, told Seven Days.
As a result, Mickenberg said the Ceres store will charge 7 percent state and local sales tax on its over-the-counter CBD products, which include pills, salves and patches designed to offer pain and anxiety relief.
Ceres was initially charging sales tax but paused after numerous complaints from customers who said that other retailers were not charging sales tax, according to Mickenberg. The company then sought the guidance of the Tax Department, he said.
Green State Gardener, another Burlington outlet that sells CBD products, has been charging sales tax on such items and will continue to do so, according to general manager Kelsy Raap.
Top image: © Zerbor | Dreamstime.com
Source: Cannabis Business Times