830 CMR 64N. 1.1 applies to all retail sales of marijuana by marijuana retailers occurring on or after June 1, 2021.
Commissioner. The Commissioner of Revenue or the Commissioner's duly authorized representative.
Marijuana. All parts of any plant of the genus Cannabis, with certain exceptions, as defined in M.G.L. c. 94G, § 1. Marijuana also includes all "marijuana products" as defined in M.G.L. c. 94G, § 1 and 935 CMR 500.002: Definitions. Such marijuana products include edible products, beverages, topical products, ointments, oils, and tinctures.
Marijuana Courier. As defined in 935 CMR 500.002: Definitions. A Marijuana Courier is a marijuana establishment licensed by the Cannabis Control Commission to make deliveries, but not sales, of marijuana directly to consumers on behalf of a marijuana retailer. A Marijuana Courier is not a marijuana retailer.
Marijuana Delivery Operator. As defined in 935 CMR 500.002: Definitions. A Marijuana Delivery Operator is a marijuana establishment licensed by the Cannabis Control Commission to make sales and deliveries of marijuana directly to consumers. A Marijuana Delivery Operator is a marijuana retailer.
Marijuana Establishment. A marijuana-related business licensed by the Cannabis Control Commission; provided, however, that a medical marijuana treatment center or registered marijuana dispensary shall be treated as a marijuana establishment for the purposes of 830 CMR 64N.1.1.
Marijuana Establishment with a Delivery Endorsement. As defined in 935 CMR 500.002: Definitions. A Marijuana Establishment with a Delivery Endorsement is a marijuana establishment that has received a "Delivery Endorsement," as defined in 935 CMR 500.002, to make sales and deliveries of marijuana directly to consumers. A Marijuana Establishment with a Delivery Endorsement is a marijuana retailer.
Marijuana Excise. The excise imposed pursuant to M.G.L. c. 64N, § 2.
Marijuana Local Tax Option. The local tax option accepted by a city or town pursuant to M.G.L. c. 64N, § 3.
Marijuana Retail Taxes. Collectively, the taxes imposed on retail sales of marijuana, including the marijuana excise, the marijuana local tax option, and the sales tax.
Marijuana Retailer. A marijuana establishment licensed by the Cannabis Control Commission to purchase, deliver, sell, or otherwise transfer marijuana to consumers. A Marijuana Retailer is a "vendor" as defined in M.G.L. c. 64H, § 1 and M.G.L. c. 64I, § 1.
Medical Marijuana. Marijuana authorized to be sold for medical use, as described in M.G.L. c. 94I.
Retail Sale. A sale of marijuana subject to the marijuana retail taxes.
Sale. Any transfer of title or possession of marijuana. Sale has the same general meaning as the terms "sale" and "selling" as defined in M.G.L. c. 64H, § 1.
Sales Price. The total amount paid by a purchaser to a marijuana retailer as consideration for a retail sale, including any amount paid for services that are a part of the sale. Generally, "sales price" has the same meaning as defined in M.G.L. c. 64H, § 1.
Sales Tax. The sales tax imposed pursuant to M.G.L. c. 64H, § 2 or the use tax imposed pursuant to M.G.L. c. 64I, § 2.
To substantiate these sales tax exemptions, the purchasing marijuana establishment must present an exempt use certificate (Form ST-12) and its marijuana establishment license to the selling marijuana establishment at the time of sale. The burden of proving that the sale of marijuana is exempt from tax is on the selling marijuana establishment, unless it takes an exempt use certificate in good faith in accordance with M.G.L. c. 64H, § 8(f) and 830 CMR 64H.8.1(5). A marijuana establishment may not accept in good faith an exempt use certificate presented by anyone other than a marijuana establishment.
Marijuana establishments must collect sales tax on all transactions except as described in 830 CMR 64N.1.1(3)(c)2. Marijuana establishments may be entitled to additional sales tax exemptions not specified in 830 CMR 64N.1.1(3)(c)2.a. through c. for purchases of non-marijuana tangible personal property that are used for one of the exempt purposes described in M.G.L. c. 64H, § 6.
Marijuana retailers must also separately state the portion of the sales price attributable to sales of marijuana and to sales of other goods or services in amounts that reasonably reflect their retail value on the receipt to the purchaser. If the marijuana retailer does not follow this requirement, the marijuana retail taxes will be imposed on the total sales price of the entire transaction. The Commissioner may review transactions involving retail sales of marijuana that do not reasonably reflect the marijuana's retail value pursuant to M.G.L. c. 62C, § 3A. Marijuana retailers must separately report sales of marijuana and non-marijuana taxable tangible personal property to the Commissioner.
Sales Price - Rolling Papers | $5.00 |
Sales Tax (6.25%) | $.31 |
Total Tax Imposed | $.31 |
Total Charge - Rolling Papers | $5.31 |
Sales Price - T-shirt | $20.00 |
Total Tax Imposed | $.00 |
Total Charge - T-shirt | $20.00 |
Sales Price - Marijuana | $100.00 |
Marijuana Excise (10.75%) | $10.75 |
Marijuana Local Tax Option (3%) | $3.00 |
Sales Tax (6.25%) | $6.25 |
Total Tax Imposed | $20.00 |
Total Charge - Marijuana | $120.00 |
Transaction Total | $145.31 |
When filing its tax returns, marijuana retailer must report the total sales price of the rolling papers on its sales and use tax return and the total sales price of the marijuana on its marijuana retail tax return.
Marijuana retailers must provide such records to the Commissioner upon request.
830 CMR 64N.1.1