How is medical marijuana taxed differently than recreational marijuana?
In Virginia, medical marijuana and recreational marijuana are both subject to a 15% excise tax. However, medical marijuana is exempt from the typical 6.0% sales tax that applies to recreational marijuana. This means that those using medical marijuana do not have to pay the state sales tax, which saves them money. Medical marijuana is also subject to a registration and handling fee. This fee applies to all medical marijuana purchases and is used to pay for the costs associated with licensing and managing the medical marijuana program. Unlike recreational marijuana, medical marijuana is only available to those with a valid medical marijuana card. In order to obtain a medical marijuana card, an individual must provide proof of a qualifying medical condition from a licensed healthcare provider. This means that recreational marijuana cannot be used for medical purposes. In summary, while medical marijuana and recreational marijuana are both subject to a 15% excise tax, medical marijuana is exempt from sales tax and is subject to a registration and handling fee that pays for the costs associated with the medical marijuana program. Additionally, medical marijuana is only available to those with a valid medical marijuana card, and recreational marijuana cannot be used for medical purposes.
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