OKLAHOMA CITY (KFOR) – A measure that would clarify a tax exemption related to agricultural products is making its way through the Oklahoma Senate.

On Monday, the Senate Finance Committee approved legislation that clarifies that medical marijuana is not an ‘agricultural product.’

As a result, it does not qualify for the state’s agricultural sales tax exemption.

The author of Senate Bill 133, Sen. David Bullard, (R-Durant), says that marijuana growers aren’t using the sales tax exemption right now. However, he says this would clarify that Oklahoma could keep track of the industry’s water usage.

“In 2018, Oklahoma voters approved State Question 788, but they did not vote to allow medical marijuana to be exempt from the agriculture sales tax. While growers are not using the tax exemption, the law still needs to be clarified because the water usage of industries that do get the exemption can’t be monitored by the state,” Bullard said. “Marijuana grows use a lot of water and are causing problems for smaller, rural communities, so it’s imperative that the state, our municipalities, and counties know exactly how much is being pulled for future planning and to protect local water sources.”

Currently, agricultural products that are produced in Oklahoma and sold from a farm directly to consumers are provided a sales tax exemption.

SB 133 would clarify that growing, processing, and harvesting medical marijuana would not qualify as an “agricultural product” under the sales tax exemption.

SB 133 now moves to the Senate floor.