Recreational marijuana is illegal in West Virginia, and while medical cannabis was legalized in 2017, the legal sales of medical marijuana products did not begin until November 2021. The state's medical cannabis industry is still in its infancy but is gradually expanding with over 50 approved medical marijuana dispensary locations. As of April 2022, the West Virginia Office of Medical Cannabis (OMC) has issued over 7,000 medical cannabis cards to qualifying patients, indicating a growing demand for medical marijuana in the state. The OMC reports that nearly $5 million worth of medical marijuana products have been sold in West Virginia between November 2021 and June 2022.
Per Section 16A-9-1(h) of the West Virginia Code, the sale of medical marijuana in West Virginia is not subject to taxes. However, medical cannabis dispensaries are subject to a 10% Cannabis Dispensary Tax (CDT), which is levied on the gross receipts accrued or received on medical marijuana during each quarter. The CDT cannot be passed to patients or caregivers. Dispensaries must not add it as a separate charge to or line item on any receipt, invoice, or sales slip of the price paid by buyers. Revenue generated in CTD goes into the state's Medical Cannabis Program Fund.
The West Virginia Tax Division taxes licensed medical marijuana dispensaries in the state. In West Virginia, all medical cannabis dispensaries must maintain a valid business registration with the Tax Department to enable them to file the Cannabis Dispensary Tax (CDT). The state's Tax Division requires each dispensary to file its tax return quarterly electronically via MyTaxes. The CDT is due on the 20th day of January, April, July, and October for the prior calendar quarter.
All inquiries about marijuana tax returns in West Virginia should be directed to one of the state's Tax Division Regional Office Locations or via email. Interested persons can also contact the West Virginia Tax Division at (304) 558-3333 or in person at its headquarters located at:
The Revenue Center
1001 Lee Street East
Charleston, WV 25301