Hemp THC-infused Beverages Available on Tap in Minnesota after New Law

Minnesota recently passed a law that permits breweries to offer hemp THC-infused beverages on tap.

Headflyer Brewing in northeast Minneapolis is now offering a selection of beverages infused with THC derived from hemp.

That’s because a recent change in legislation now permits taprooms to serve them in this manner. Prior to the update, customers were limited to purchasing cans. If breweries provide the necessary information that is typically required on a label, they are allowed to sell the product without packaging.

This is the most recent update to the legislation that initially allowed THC edibles two years ago. Now, as long as the edibles are made from hemp and contain no more than 5 milligrams per serving and 50 milligrams per package, they are considered legal. In the past summer, liquor stores were given permission to begin selling them, coinciding with the implementation of a 10% gross receipts sales tax on the products.

According to the Minnesota Department of Revenue, the state generated over $11.5 million in revenue during the 11-month period from last July through May, the most recent month for which data is available. The deadline for filing in June is at the end of the month.

Additionally, there is the possibility of a significant increase in revenue from the upcoming legalization of marijuana sales next year. The process for obtaining the initial cannabis business licenses is already in progress.

As of mid-June, the new Office of Cannabis Management has compiled a list of almost 3,900 businesses that are selling hemp-derived products. All businesses must now complete registration with the state. However, the number of businesses that paid the gross receipts tax was only 1,873, as per the tax return information.

According to a spokesperson from the Department of Revenue, the difference in numbers can be attributed to various factors. These include businesses that are registered but exempt from taxes, such as wholesalers, businesses that have ceased operations, businesses that are not currently making sales but may do so in the future, and businesses that sell products but fail to file the necessary taxes.

Schnabel mentioned that the availability of THC drinks has proven to be beneficial for business, particularly for customers who are looking for an alternative to beer as per CBS News.

Over time, there has been a growing interest in the products, and Headflyer is expanding its distribution of the drinks.

“Our customer base continues to grow as more people become acquainted with our product. This includes a range of businesses, from local establishments to larger national retailers,” he explained.

Once legal marijuana sales begin, these products will also be subject to a 10% gross receipts tax. According to an analysis by Vicente LLP, a cannabis firm, Minnesota has the potential to achieve $1.5 billion in annual sales by the end of the decade.

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