Sales Tax on Cannabanoid Containing Products in Minnesota

ccheney
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As of July 1, 2023, Minnesota has introduced a new regulation regarding the sale of edible cannabinoid products. While currently legal to sell, these products will be subject to the newly implemented 10% Cannabis Tax. This means that in addition to the Cannabis Tax, edible cannabinoid products will also be subject to the standard 6.875% state general rate sales tax, as well as any applicable local sales taxes based on the location of the transaction.

We are selling compliant hemp-derived products as allowed here https://help.shopify.com/en/manual/compliance/legal/hemp

All of my research for capturing this tax points to the tax overrides feature. It's my understanding that using a tax override would replace the existing tax. As stated above, the 10% tax should be in addition to normal sales tax. Both taxes need to be collected. How can I setup a tax override that accommodates both the sales tax as well as the cannabis tax?

In addition to this, is it possible to display a new line-item on the checkout screen that shows the cannabis tax along with the other tax line items?

Example
- Subtotal $1.00
- Sales Tax $0.06
- MN Cannabis Tax: $0.10
- Total $1.16

Reply 1 (1)

Geoffrey_Sass
Visitor
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We are having this exact same issue. And I will add Shopify support has been extremely unhelpful. Has anyone found a solution? We are thinking we might have to move off Shopify...