§ 7901. Definitions
As used in this chapter:
(1) “Cannabis” has the same meaning as in 7 V.S.A. § 831.
(2) “Cannabis cultivator” has the same meaning as in 7 V.S.A. § 861.
(3) “Cannabis product” has the same meaning as in 7 V.S.A. § 831.
(4) “Cannabis product manufacturer” has the same meaning as in 7 V.S.A. § 861.
(5) “Cannabis retailer” has the same meaning as in 7 V.S.A. § 861.
(6) “Cannabis wholesaler” has the same meaning as in 7 V.S.A. § 861.
(7) “Integrated licensee” has the same meaning as in 7 V.S.A. § 861.
(8) “Retail sale” or “sold at retail” means any sale for any purpose other than for resale
by a cannabis retailer or integrated licensee.
(9) “Sales price” has the same meaning as in section 9701 of this title. (Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7902. Cannabis excise tax
(a) There is imposed a cannabis excise tax equal to 14 percent of the sales price of each
retail sale in this State of cannabis and cannabis products, including food or beverages.
(b) The tax imposed by this section shall be paid by the purchaser to the retailer or
integrated licensee. Each retailer or integrated licensee shall collect from the purchaser
the full amount of the tax payable on each taxable sale.
(c) The tax imposed by this section is separate from and in addition to the general sales
and use tax imposed by chapter 233 of this title. The tax imposed by this section
shall not be part of the sales price to which the general sales and use tax applies.
The cannabis excise tax shall be separately itemized from the general sales and use
tax on the receipt provided to the purchaser.
(d) The following sales shall be exempt from the tax imposed under this section:
(1) sales under any circumstances in which the State is without power to impose the tax;
and
(2) sales made by any dispensary as authorized under 7 V.S.A. chapter 37 or any retailer licensed with a medical-use endorsement as authorized under 7 V.S.A. chapter 33, provided that the cannabis or cannabis product is sold only to registered patients
directly or through their registered caregivers. A retailer that sells cannabis or
cannabis products that are exempt from tax pursuant to this subdivision shall retain
information pertaining to each exempt transaction as required by the Commissioner
of Taxes. (Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022; amended 2023, No. 166 (Adj. Sess.), § 13, eff. June 10, 2024.)
§ 7903. Liability for tax
(a) Any tax collected in accordance with this chapter shall be deemed to be held by the
retailer or integrated licensee in trust for the State of Vermont. Any tax collected
under this chapter shall be accounted for separately so as clearly to indicate the
amount of tax collected and that the same are the property of the State of Vermont.
(b) Every retailer or integrated licensee required to collect and remit the tax under
this chapter to the Commissioner shall be personally and individually liable for the
amount of such tax, together with such interest and penalty as has accrued under the
provisions of section 3202 of this title. If the retailer or integrated licensee is a corporation or other entity, the personal
liability shall extend to any officer or agent of the corporation or entity who as
an officer or agent of the same has the authority to collect and remit tax to the
Commissioner of Taxes as required in this chapter.
(c) A retailer or integrated licensee shall have the same rights in collecting tax from
his or her purchaser or regarding nonpayment of tax by the purchaser as if the tax
were a part of the purchase price of cannabis or cannabis products and payable at
the same time; provided, however, if the retailer or integrated licensee required
to collect tax has failed to remit any portion of the tax to the Commissioner of Taxes,
the Commissioner of Taxes shall be notified of any action or proceeding brought by
the retailer or integrated licensee to collect tax and shall have the right to intervene
in such action or proceeding.
(d) A retailer or integrated licensee required to collect tax may also refund or credit
to the purchaser any tax erroneously, illegally, or unconstitutionally collected.
No cause of action that may exist under State law shall accrue against the retailer
or integrated licensee for tax collected unless the purchaser has provided written
notice to a retailer or integrated licensee and the retailer or integrated licensee
has had 60 days to respond. (Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7904. Returns; records
(a) Any retailer or integrated licensee required to collect the tax imposed by this chapter
shall, on or before the 25th day of every month, return to the Department of Taxes,
under oath of a person with legal authority to bind the retailer or integrated licensee,
a statement containing its name and place of business, the total amount of sales subject
to the cannabis excise tax made in the preceding month, and any information required
by the Department of Taxes, along with the total tax due. Retailers and integrated
licensees shall not remit the tax collected to the Department of Taxes in cash absent
the issuance of a waiver by the Commissioner of Taxes, and the Commissioner may require
that returns be submitted electronically.
(b) Every retailer and integrated licensee shall maintain, for not less than three years,
accurate records showing all transactions subject to tax liability under this chapter.
The records are subject to inspection by the Department of Taxes at all reasonable
times during normal business hours. (Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7905. Bundled transactions
(a) Except as provided in subsection (b) of this section, a retail sale of a bundled transaction
that includes cannabis or a cannabis product is subject to the cannabis excise tax
imposed by this chapter on the entire sales price of the bundled transaction. If there
is a conflict with the bundling transaction provisions applicable to another tax type,
this section shall apply.
(b) If the sales price is attributable to products that are taxable and products that
are not taxable under this chapter, the portion of the price attributable to the products
that are nontaxable is subject to the tax imposed by this chapter unless the retailer
or integrated licensee can identify by reasonable and verifiable standards the portion
that is not subject to tax from its books and records that are kept in the regular
course of business, and any discounts applied to the bundle must be attributed to
the products that are nontaxable under this chapter.
(c) As used in this section, “bundled transaction” means:
(1) the retail sale of two or more products where the products are otherwise distinct
and identifiable, are sold for one nonitemized price, and at least one of the products
is or contains cannabis; or
(2) cannabis or a cannabis product that is provided free of charge with the required purchase
of another product. (Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7906. License
(a) Any retailer or integrated licensee required to collect tax imposed by this chapter
must apply for and receive a cannabis retail tax license from the Commissioner for
each place of business within the State where he or she sells cannabis or cannabis
products prior to commencing business. The Commissioner shall issue without charge
a license, or licenses, empowering the retailer or integrated licensee to collect
the cannabis excise tax, provided that a retailer’s or integrated licensee’s application
is properly submitted and the retailer or integrated licensee is otherwise in compliance
with applicable laws, rules, and provisions.
(b) Each cannabis retail tax license shall state the place of business to which it is
applicable and be prominently displayed in the place of business. The licenses shall
be nonassignable and nontransferable and shall be surrendered to the Commissioner
immediately upon the registrant ceasing to do business in the place named. A cannabis
retail tax license shall be separate from and in addition to any licenses required
by sections 9271 (meals and rooms tax) and 9707 (sales and use tax) of this title.
(c) The Cannabis Control Board may require the Commissioner of Taxes to suspend or revoke
the tax licenses issued under this section for any retailer or integrated licensee
that fails to comply with 7 V.S.A. chapter 33 or any rules adopted by the Board. (Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7907. Administration of the cannabis excise tax
(a) The Commissioner of Taxes shall administer and enforce this chapter. The Commissioner
may adopt rules pursuant to 3 V.S.A. chapter 25 to carry out such administration and enforcement.
(b) To the extent not inconsistent with this chapter, the provisions for the assessment,
collection, enforcement, and appeals of the sales and use tax in chapter 233 of this
title shall apply to the cannabis excise tax imposed by this chapter. (Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7908. Statutory purpose
The statutory purpose of the exemption for cannabis and cannabis products sold by
any dispensary as authorized under 7 V.S.A. chapter 37 in subdivision 7902(d)(2) of this title is to lower the cost of medical products in order to support the health and welfare
of Vermont residents. (Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.)
§ 7909. Repealed. 2025, No. 27, § E.313.1, eff. July 1, 2025.
(Added 2021, No. 62, § 18, eff. March 1, 2022; amended 2021, No. 185 (Adj. Sess.), § E.240.2, eff. July 1, 2023; § E.313.3.)
§ 7910. Cannabis sales tax revenue; Universal Afterschool and Summer Special Fund
Notwithstanding 16 V.S.A. § 4025, revenue from the sales and use tax imposed by chapter 233 of this title on retail
sales of cannabis or cannabis products in Vermont shall be deposited into the Universal
Afterschool and Summer Special Fund established pursuant to 16 V.S.A. § 51. (Added 2023, No. 87 (Adj. Sess.), § 98, eff. March 13, 2024.)