I grow hemp in Tennessee. I then take the hemp and produce creams, oils, and other products from the hemp. Are these products subject to state tax?

The Tennessee Department of Agriculture is the state agency that regulates hemp growers. You can find information about when it is legal to grow hemp on their website at https://www.tn.gov/agriculture/farms/hemp-industry.html.

Your sales of creams, oils (including CBD oils), and other products made out of hemp that you grew are subject to the sales tax. You are also subject to the business tax on your sales of products made out of hemp. These products are not exempt for medical purposes.  Businesses that are corporations or LLCs are also subject to Tennessee’s franchise and excise taxes.

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