There has been a lot of confusion about the tax status of CBD products that are ingested. However, the rules are clear that ALL CBD products sold in Vermont are subject to sales tax. There are only two exceptions according to the Department of Taxes:
Hemp plants that are purchased as an agricultural supply are exempt from the Vermont Sales and Use Tax under the agricultural exemption. Cannabidiol is generally subject to the Vermont Sales and Use Tax, with the exception of one form of cannabidiol that has been approved by the FDA, and therefore qualifies for the drug exemption from sales tax.
Therefore, only clones sold by NEK Hemp are free of taxes in Vermont. Every other product, including edible products, are not tax exempt:
CBD products are substances that are sold for ingestion or chewing by humans off the seller’s premises, but they are consumed for their therapeutic value, rather than for their taste or nutritional value. CBD products therefore do not qualify for the food exemption because they are not consumed for their taste or nutritional value and they are not required to be labeled as a dietary supplement under federal regulation.