Idaho Marijuana Business

What is the Demand for Marijuana in Idaho?

Idaho has no legal marijuana market at the moment. Cannabis is considered a controlled substance under Idaho law, and as such, selling or purchasing it is prohibited. However, according to a 2022 report by the Idaho Office of Drug Policy (ODP), the state ranked 29th for cannabis use (illegal market) in the United States in 2020.

How is Marijuana Taxed in Idaho?

The sales of medical cannabis and recreational marijuana are prohibited in Idaho. However, the state imposes an illegal drug tax on individuals caught in possession of controlled substances, including cannabis, in violation of state law. As stipulated in the state's Illegal Drug Stamp Tax Act, anyone who violates Idaho law by possessing a controlled substance such as marijuana is liable to pay an excise tax.

The tax rate on a growing marijuana plant is $775 per growing plant and $3.50 per gram of cannabis or each portion of one gram. The illegal drug tax on cannabis is imposed on persons who possess one or more growing marijuana plants and more than 42.5 grams of cannabis. Revenues generated from taxes imposed on illegal marijuana and other prohibited drugs in Idaho are distributed in the following ways:

• A portion of the revenue is retained by the Idaho Tax Commission to cover the cost of collecting, administering, and enforcing the tax. This amount must exceed the amount approved by the state legislature. Any unencumbered balance in excess of the actual expended cost by the Commission is distributed to the substance abuse treatment account by the end of each fiscal year
• Another portion of the revenue is allocated to the state refund account for current refund claims

What is the Agency Taxing Marijuana Business in Idaho?

Marijuana is currently not subject to tax in Idaho because cannabis is illegal. However, the Idaho State Tax Commission, under the Illegal Drug Stamp Tax Act, is authorized to collect an excise tax on cannabis and marijuana held by individuals in violation of state law. The Commission provides Form MCS-1 to enable anyone caught in possession of cannabis to pay the applicable controlled substance tax. For inquiries on marijuana tax in Idaho, contact the state's Tax Commission toll-free at (800) 972-7660 or by email. Alternatively, anyone looking to make any inquiries from the Idaho State Tax Commission can visit any of their office locations across the state.