In a significant step toward streamlining compliance for medical cannabis operators, the Kentucky Office of Medical Cannabis, in collaboration with the Kentucky Department of Revenue (DOR), issued a technical advisory regarding the availability of electronic tax filings for medical cannabis businesses. This development is important, as the DOR previously indicated that tax obligations related to medical cannabis businesses would need to be paid in cash until an electronic payment solution could be implemented.
As a result of this update in state procedures, Kentucky’s banking partner is now accepting electronic payments for ancillary taxes—those not directly related to cannabis products— such as standard business taxes.
The joint technical advisory indicates that medical cannabis licensees may pay their taxes online through the new Kentucky DOR portal at mytaxes.ky.gov. If you are a licensee and have already set up a MyTaxes account, you can click: “Log in Now.” If your business has not registered yet, you will need to click on “Register a new account” and follow the steps provided to sign up.
Ancillary tax types currently eligible for e-payment include the following non-cannabis-related business taxes:
- Commercial Mobile Radio Service Prepaid Service Charge
- Consumer’s Use Tax
- Corporation Income Tax/ Limited Liability Entity Tax
- Employer’s Withholding Tax
- Withholding K-5
- KY Nonresident Income Tax Withholding on Distributive Share Income Tax
- Motor Vehicle Tire Fee
- Sales & Use Tax
- Telecommunications Tax
- Transient Room Tax
- Utility Gross Receipts License Tax
To pay other taxes not yet integrated into the MyTaxes system, visit the DOR’s E-File Payment Options page and select your tax type from the list.
The state plans to continue rolling out electronic payment options for additional business taxes and individual income taxes over the coming years. For licensed cannabis businesses, this change signals continued progress in integrating medical cannabis into Kentucky’s broader regulatory and financial systems.
For updates and additional guidance, please continue to check Dentons Kentucky Cannabis Law Blog and reach out to a Dentons attorney if you need additional information or support.
