Beginning March 1, 2020, cannabis retailers may provide free cannabis or cannabis products to qualified medicinal patients or their primary caregivers. This change is due to the adoption of Senate Bill 34, which also exempts these donated items from excise, sales and use, and cultivation taxes. Licensed cultivators, manufacturers, distributors, retailers or microbusinesses may designate cannabis or cannabis products that they hold in their inventory for donation. Items designated for donation may only be provided to a medicinal patient or primary caregiver through a licensed retailer.
• Licensees designating an item for donation are required to record that designation in Track-and-Trace and on invoices and sales receipts.
• Licensees cannot change the donation designation made by another licensee or after the donated item has been transported to another licensee. Any licensee that changes a donation designation will be liable for sales and use taxes on the items and may be subject to disciplinary action.
• Manufacturers producing cannabis products for donation must include the statement “FOR MEDICINAL USE ONLY” on the label.
Instructions for Metrc
All items intended for donation must be marked as such in Track-and-Trace.
Any licensee may designate cannabis or cannabis products that they hold in their inventory for donation in CCTT-Metrc. Licensees cannot remove the donation designation made by another licensee or after the donated item has been transferred and accepted into the inventory of another licensee.
To designate an existing package of cannabis or cannabis products for donation, on the Packages page:
Select the Package UID and then
Add Donation to Packages
Since these donations will be marked as exempt of any tax, you will have to know which package is marked for donation. When you assign it to a line item on a Sales Order, you will need to invoice the donation items separately from anything else. Otherwise, if you do choose to include them on the same invoice with other non-donation line items, you'll need to manually calculate the taxes.
As of right now, donation packages will need to be marked as such in Metrc (without in being visible in Distru on the package show page), and there is no availability to mark a package as donation in Distru at the moment.