A lawsuit challenging Oklahoma's marijuana tax wants everyone to be reimbursed

OG Article By Dale Denwalt, The Oklahoman

October 13 2025

Lawsuit Filed

Two Oklahoma residents, Adrian Keith Johnson and Tracy Neeley, sued the state.They claim the 7% medical cannabis excise tax is unconstitutional.The lawsuit targets the Oklahoma Tax Commission and state treasurer.

Reimbursement Demand

The plaintiffs seek a refund program for patients.They claim the tax has collected over $1 billion with interest.State records show only $337 million collected since 2018.

Tax Structure

Medical cannabis purchases face three taxes:

• Excise Tax (7%): Funds state programs, originally for regulation.

• State Sales Tax (4.5%): Applied to all sales.

• Local Sales Tax: Varies, e.g., 4.125% in Oklahoma City.

Legal Argument

The lawsuit argues the tax violates Oklahoma’s constitution.Taxes must specify their purpose clearly.Discretionary spending by the legislature is unconstitutional, they claim.Medicine is generally sales tax-exempt, yet cannabis faces the excise tax.

Tax Evolution

Voters approved the tax in 2018 via State Question 788.It initially funded the Oklahoma Medical Marijuana Authority (OMMA).Now, OMMA is funded by fees and fines.The tax supports education and substance abuse programs.

Class Action Push

The plaintiffs want a class-action lawsuit.This would allow all patients who paid the tax to seek refunds.The court will decide if the case qualifies.

State Response

The state has until October 15, 2025, to reply.The Oklahoma Tax Commission and Treasurer Todd Russ are named.Neither commented on the pending litigation.

Originally published by Oklahoman.