TennesseeTennessee taxes inhalable hemp cartridges at 10% of wholesale cost
Starting July 1, 2026, wholesale sales of liquid hemp-derived cannabinoid products are taxed by volume, with an added tax for inhalable cartridges.
What it does
Wholesale sales of liquid hemp-derived cannabinoid products are taxed at $4.40 per gallon, or at a proportional rate when the container is not measured by gallonage. Inhalable cartridge products also have a 10% tax on wholesale cost.
Argument forThe cartridge tax could bring in more state revenue from wholesale sales of inhalable products.
Argument againstThe cartridge tax could raise wholesale prices, and sellers may pass some of that cost on to stores or customers.
More detail
The law taxes wholesale sales of liquid hemp-derived cannabinoid products. The tax applies to liquid products sold at wholesale. Products inhalable in cartridge form also have a 10% tax on their wholesale cost. The law takes effect July 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 27Pub. Ch. 1127Latest
- May 27Effective date(s) 07/01/2026
- May 22Signed by Governor Bill Lee.Became Law
- May 11Transmitted to Governor for action.To Governor
- May 7Signed by H. SpeakerMajor
- Apr 30Signed by Senate SpeakerMajor
- Apr 29Enrolled and ready for signaturesMinor
- Apr 21Subst. for comp. HB.Major
- Vote recorded FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/21/2026 Passed. Result: pass.Lower
- Apr 21Am. withdrawn. (Amendment 1 - HA1052)Minor
- Apr 21Passed H., Ayes 78, Nays 7, PNV 2Passed House
- Apr 16Senate adopted Amendment (Amendment 1 - SA1045)
- Vote recorded FLOOR VOTE: as Amended Third Consideration 4/16/2026 Passed. Result: pass.Upper
- Apr 16Passed Senate as amended, Ayes 30, Nays 0Passed Senate
- Apr 16Engrossed; ready for transmission to HouseMinor
- Apr 15Placed on Senate Regular Calendar 2 for 4/16/2026
- Apr 14Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 9, Nays 0 PNV 0
- Vote recorded SENATE STATE & LOCAL GOVERNMENT COMMITTEE: Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 9, Nays 0 PNV 0 4/14/2026 Passed. Result: pass.Upper
- Vote recorded SENATE FINANCE, WAYS AND MEANS COMMITTEE: Recommended for passage, refer to Senate Calendar Committee 4/14/2026 Passed. Result: pass.Upper
- Apr 14Placed on Senate Finance, Ways, and Means Committee calendar for 4/14/2026
- Apr 14Recommended for passage, refer to Senate Calendar Committee
- Apr 13Rule #83(8) Suspended, to be heard in Senate Finance, Ways & Means Committee on 4/14/2026 (if passes out of Senate State & Local Gov't)
- Apr 8Placed on Senate State and Local Government Committee calendar for 4/14/2026
- Feb 5Passed on Second Consideration, refer to Senate State and Local Government CommitteeMinor
- Feb 2Filed for introductionMinor
- Feb 2Introduced, Passed on First ConsiderationIntroduced
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