OKLAHOMA CITY – The Senate Finance Committee approved legislation Monday clarifying that medical marijuana is not an “agricultural product” and therefore does not qualify for the state’s agricultural sales tax exemption. Sen. David Bullard, R-Durant, said Senate Bill 133 is needed to clarify marijuana’s status and to help the state be able to better track the industry’s water usage.
“In 2018, Oklahoma voters approved State Question 788, but they did not vote to allow medical marijuana to be exempt from the agriculture sales tax. While growers are not using the tax exemption, the law still needs to be clarified because the water usage of industries that do get the exemption can’t be monitored by the state,” Bullard said. “Marijuana grows use a lot of water and are causing problems for smaller, rural communities, so it’s imperative that the state, our municipalities, and counties know exactly how much is being pulled for future planning and to protect local water sources.”
Currently, agriculture products produced in Oklahoma and sold from or at a farm, orchard, or garden directly to consumers are provided a sales tax exemption. SB 133 would clarify that growing, processing, and harvesting medical marijuana would not qualify as an “agricultural product” as is defined for the agricultural sales tax exemption.
SB 133 now moves to the Senate floor for further debate.
For more information, contact: Sen. Bullard: (405) 521-5586 or David.Bullard@oksenate.gov