Kansas Marijuana Business

What is the Demand for Marijuana in Kansas?

There is no legal market for marijuana in Kansas. While legalizing recreational cannabis is not yet on the agenda in the Kansas legislature, a few bills are being discussed for the legalization of medical cannabis. According to the results of a recent survey published by the Kansas legislature, more than 70% of Kansans were ready to embrace laws providing access to medical cannabis.

How is Marijuana Taxed in Kansas?

Although marijuana is not permitted to be sold in Kansas, the state still requires drug dealers and persons who possess marijuana to purchase drug tax stamps equal to the value of cannabis in their possession. Per Article 52 of the Kansas 2022 Statutes, a dealer refers to any person who, in violation of Kansas law, manufactures, produces, ships, transports, or imports into Kansas or in any manner acquires or possesses:

• More than 28 grams of marijuana; or
• More than one gram of any controlled substance: or
• 10 or more dosage units of marijuana not sold by weight

Kansas requires drug tax stamps to be affixed to the packaging as soon they take possession of illegal drugs. Note that purchasing drug tax stamps does not make the possession of cannabis legal in the state.

Under Section 79-5202 of the Kansas Statutes, the following are the prescribed drug stamp taxes:

• On each gram of marijuana, or each portion of a gram, with a threshold limit of over 28 grams: $3.50
• On each gram of a wet domestic marijuana plant: $0.40
• On each gram of a dry domestic marijuana plant: $0.90
• On each gram of a controlled substance, or portion of a gram, with a threshold limit of over 1 gram: $200
• On each 50 dosage units of marijuana not sold by weight, or portion thereof, with a threshold limit of 10 doses: $2,000

Besides drug stamp taxes, Kansas also taxes persons found with cannabis without stamps. Under the marijuana drug stamp tax program, the revenue generated by the state is split, with 25% sent to the Kansas State General Fund and 75% going to local governments. Which local government, city, or county receives the funds generated from the program largely depends on which local law enforcement agency conducted the initial arrest and where it happened. Funds collected by local governments, cities, or counties are deposited in special law enforcement trust funds in the area where the arrest occurred.

What is the Agency Taxing Marijuana Business in Kansas?

The Kansas Department of Revenue (KDOR) collects drug stamp tax in the state. The KDOR collects fees and taxes, administers Kansas tax laws, issues specific licenses, and provides assistance to Kansas citizens and government units. To contact the KDOR, call (785) 368-8222 or e-mail kdor_tac@ks.gov.