North Dakota legalized medical marijuana in 2016, but legal sales did not start until March 2019. Recreational cannabis is still illegal in the state. The demand for medical marijuana in North Dakota has continued to rise since the legal sale began in 2019.
According to a 2022 Medical Marijuana Program Annual Report by the North Dakota Division of Medical Marijuana, the state registered 707 qualifying patients in Fiscal Year (FY) 2019. In FY 2020, the number of qualifying patients with North Dakota medical marijuana cards increased to 3,233, and in FY 2021, it went up to 5,754. As of June 2022, medical registry identification card data revealed 7,958 registered qualifying patients in North Dakota. The increasing number of qualifying patients with medical marijuana cards in the state since 2019 indicates a growing demand for medical marijuana.
The North Dakota Division of Medical Marijuana's 2022 Medical Marijuana Program Annual Report also revealed a growth in medical marijuana sales at state-licensed dispensaries between 2020 and 2020. In North Dakota, dispensaries sold about $6.3 million worth of medical marijuana in FY 2020. The state's total marijuana sales grew in FY 2021 ($15.3 million). In FY 2022, North Dakota licensed dispensaries made total marijuana sales of about $19.97 million.
While recreational cannabis is still illegal in the state, meaning no tax for recreational marijuana, medicinal cannabis in North Dakota is subject to sales tax. North Dakota medical marijuana patients pay a 5% sales tax on every medical cannabis purchase. However, the state does not collect an excise tax on medical marijuana.
Under the North Dakota proposed marijuana ballot measure (Measure 2), the state, counties, and cities will get the following taxes on every marijuana sale:
State (North Dakota) - 15% (5% of existing sales tax and 10% excise)
County - 0.5%
City - 2%
Under this proposed ballot measure, North Dakota will also receive 4.31% of the corporate business tax and up to 2.27% personal income tax for each employee a marijuana business has.
The North Dakota Office of State Tax Commissioner taxes medical marijuana in the state. Currently, it does not collect taxes for recreational cannabis as it is still illegal in the state. The North Dakota medical marijuana program uses a weight-based tax system where patients are charged sales taxes using the final weight of cannabis at the time of purchase. For inquiries on medical marijuana sales tax in North Dakota, contact the Office of State Tax Commissioner at (701) 328-1246 or via email. Alternatively, interested persons can make in-person inquiries on marijuana tax in North Dakota between 8:00 a.m. and 5:00 p.m., Mondays through Fridays, at:
Office of State Tax Commissioner
600 E. Boulevard Ave., Dept. 127
Bismarck, ND 58505-0599