Arkansas lawmakers to again consider extending special tax on medical marijuana – Medical Marijuana Program Connection

Arkansas’ special tax on medical marijuana transactions sunsets in July, but the state Legislature will soon consider extending it for at least two more years.

The 4% excise tax generates millions annually for the University of Arkansas for Medical Sciences’ pursuit of recognition from the National Cancer Institute, known as NCI designation.

Since its 2017 inception, the tax — levied at the wholesale and retail levels — has bothered industry and patient advocacy groups. It is charged in addition to sales tax on a drug that a majority of Arkansans voted to consider medication in 2016.

In Arkansas and 48 other states, prescription medication is exempt from sales tax. Medical marijuana in Arkansas doesn’t require a prescription, but a patient must have written certification from a physician that they suffer from a qualifying condition to receive a cannabis patient ID card.

On the other hand, allowing the tax to expire in July would jeopardize UAMS’ NCI-designation efforts.

Lawmakers extended the tax without controversy in 2019 and 2021, and Sen. Jonathan Dismang (R-Searcy), who is sponsoring the current proposed extension, said this week he doesn’t expect this session to be any different.

The numbers

Arkansas’ medical cannabis sales and tax collection have far surpassed expectations. 

Since the first dispensary opened in the spring of 2019, Arkansans have spent roughly $800 million on medical marijuana, according to the Arkansas Department of Finance…

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