New proposal would raise sales tax on cannabis in Minnesota

May 16, 2025

(ABC 6 News) — As Minnesota lawmakers continue working towards finalizing the state budget, an item on the newly announced budget agreement is facing opposition.

The new proposal would raise the sales tax on cannabis products from 10% to 15% before recreational marijuana sales even start.

Some say it will make the products unaffordable, including business owners who focus on non-intoxicating cannabis products like CBD oils that would be taxed at the same rate.

“But to tax grandma’s CBD oil at the same rate as marijuana, I think we can look at that a little more and take off that tax on CBD products,” said Patty Gilk, the owner of Jes Naturals.

A House-Senate cannabis conference committee is currently working on the bill.