Oklahoma Marijuana Business

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What is the Demand for Marijuana in Oklahoma?

Since the legalization of medical marijuana in Oklahoma in August 2018, medicinal cannabis has been in high demand in the state. As of May 2023, Oklahoma has 365,667 registered patients and 1,497 registered caregivers in its medical marijuana program. The state also has 2,856 licensed dispensaries and has also licensed 6,675 growers and 1,805 processors. The state generated $26 million from individual medical marijuana license fees and $45.6 million in commercial license fees in 2022.

The total sales of medical cannabis at licensed dispensaries for January and February 2019 was approximately $11.5 million. Furthermore, medical marijuana sales tax revenues are rising steadily. In July 2022, the first month of Oklahoma’s 2022/2023 revenue fiscal year, excise tax on medical marijuana amounted to $4.7 million. At the end of the 10th month of the fiscal year, the state’s cumulative medical marijuana excise tax had grown tenfold to $47.8 million. This trend suggests a steady demand for medical marijuana and a matured medical cannabis market in Oklahoma.

How is Marijuana Taxed in Oklahoma?

As provided in Title 63 Section 426 of Oklahoma Statutes, medical marijuana is subject to a 7% sales tax. Sales tax is the gross amount a retailer collects for medical marijuana and marijuana products at the point of sale. According to the Statute, the sales tax will primarily fund the Oklahoma Medical Marijuana Authority (OMMA)'s administrative activities. However, Senate Bill 1033, approved by Governor Kevin Stitt on May 28, 2021, changed this provision. Senate Bill 1033 now authorizes the Oklahoma Bureau of Narcotics and Dangerous Drugs (OBNDD) and the OMMA to enter an agreement. This agreement will establish a special marijuana enforcement unit for combating unlawful drug activities in the state. Hence, a part of the OMMA's resources will finance this agency.

If the amount of sales tax generated from medical marijuana surpasses the OMMA's budget, the excess revenue will be disbursed as follows:

• 75% to the state's General Revenue Fund for financing education

• 25% goes to the Oklahoma State Department of Health. Initially, this fraction of the revenue was to finance the rehabilitation of drug and alcohol addicts solely. However, House Bill 2646, approved by Governor Kevin Stitt on May 5, 2021, amended Title 63 Section 426 of Oklahoma Statutes and changed this provision. Consequently, the percentage of cannabis excise tax allocated to the Department of Health will now fund programs that will prevent drug and alcohol addiction and rehabilitate former addicts.

According to Senate Bill 1033, the Oklahoma Tax Commission (OTC) is entitled to 1.5% of the 7% retail cannabis tax. This fund is to cover the costs incurred by the OTC when enforcing State Question 788's provisions in collecting cannabis sales taxes. Furthermore, medical marijuana is subject to state sales tax on tangible goods as provided in Title 68 Section 1371 of Oklahoma Statutes. Therefore, a 4.5% state sales tax applies to cannabis purchases at Oklahoma medical marijuana dispensaries.

What is the Agency Taxing Marijuana Businesses in Oklahoma?

The Oklahoma Tax Commission (OTC) is the agency that regulates state taxes and enforces Oklahoma taxation laws. The OTC collects the 7% marijuana sales taxes on behalf of the Oklahoma Medical Marijuana Authority. Also, the OTC collects the 4.5% state sales tax on tangible goods, including cannabis sold at dispensaries.

Oklahoma residents can make general inquiries with the Taxpayer Resource Center of the OTC online. Those who wish to make tax-related inquiries with the OTC can visit them between 7:30 a.m. and 4:30 p.m. at:

Office of Tax Commission

300 N Broadway Avenue

Oklahoma City, OK 73194

Alternatively, they can call the Taxpayer Resource Center on 1 (405) 3160-521 or make inquiries by sending mail to:

Oklahoma Tax Commission

Oklahoma City, OK 73194