Banning of THCA potentially blows $110 million hole in Tennessee’s budget

By: Adam Friedman

Outlets: Tennessee Lookout

Published: August 21, 2026

Words: 390

Last Updated: 2 months ago


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Tennessee Republican lawmakers banned popular cannabinoid-derived hemp products starting in July, and after one month of sales tax collections, projections are on pace for a $110 million loss.

The state’s new hemp laws ban smokable products and, in particular THCA, which several industry groups estimated made up 75% of Tennessee’s cannabinoid market.

When lit on fire, THCA essentially turns into THC, the psychoactive ingredient in marijuana that is illegal in Tennessee. THCA, because it comes …

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