Yep that seems to be the case, here is the responce from dept. of rev...

"Mr. ******,



The Department of Revenue has no jurisdiction over whether or not medical marijuana dispensaries are legal. Therefore, we cannot help you with this aspect.



However, whether or not such dispensaries are legal, their sales of marijuana are subject to sales tax and retailing
B&O tax. Dispensaries making such sales must be registered with the Department of Revenue and report/remit the taxes due on such sales.