PIERRE, S.D. (KELO) — People who buy medical marijuana from most businesses in South Dakota will be subject to the state government’s 4.5 percent sales tax and any local sales taxes once it becomes legal July 1, the chief lawyer for the state Department of Revenue said Wednesday.
“The answer to that question is yes,” Michael Houdyshell told the Legislature’s Executive Board.
He said that a state sales-tax exemption for prescription drugs won’t apply, because physicians won’t be prescribing marijuana for patients.
Physicians instead will be certifying that a patient has a debilitating condition that may benefit from the patient using marijuana. Patients will decide whether to apply to the State Department of Health for a card certifying the patient has such a debilitating condition and can purchase marijuana.
Houdyshell’s remarks came as state Revenue Secretary Jim Terwilliger sat alongside and nodded in agreement. Houdyshell said marijuana remains an illegal drug under the federal government’s definition of controlled substances. He said businesses have asked whether marijuana sales are subject to the state tax.
“I just wanted to make sure you were aware of that, and that the public’s aware of that, and in fact, the industry as well, because the Department of Revenue will be working with these establishments as well to make sure they’re in compliance with the state tax…
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PIERRE, S.D. (KELO) — People who buy medical marijuana from most businesses in South Dakota will be subject to the state government’s 4.5 percent sales tax and any local sales taxes once it becomes legal July 1, the chief lawyer for the state Department of Revenue said Wednesday.
“The answer to that question is yes,” Michael Houdyshell told the Legislature’s Executive Board.
He said that a state sales-tax exemption for prescription drugs won’t apply, because physicians won’t be prescribing marijuana for patients.
Physicians instead will be certifying that a patient has a debilitating condition that may benefit from the patient using marijuana. Patients will decide whether to apply to the State Department of Health for a card certifying the patient has such a debilitating condition and can purchase marijuana.
Houdyshell’s remarks came as state Revenue Secretary Jim Terwilliger sat alongside and nodded in agreement. Houdyshell said marijuana remains an illegal drug under the federal government’s definition of controlled substances. He said businesses have asked whether marijuana sales are subject to the state tax.
“I just wanted to make sure you were aware of that, and that the public’s aware of that, and in fact, the industry as well, because the Department of Revenue will be working with these establishments as well to make sure they’re in compliance with the state tax…
