Beginning January 1, 2026, this bill imposes a sales tax of 20% on hemp and hemp products that contain tetrahydrocannabinol, or THC. It changes the percentage from 12% to 6% of the adult use cannabis sales tax and excise tax that is transferred to the Adult Use Cannabis Public Health and Safety and Municipal Opt-in Fund. It changes the method of taxation of adult use cannabis products to 10% of the average wholesale price of adult use cannabis sold by a cultivation facility licensee to other licensees. It provides that an excise tax is not imposed on the sale or transfer of adult use cannabis between cultivation facilities and products manufacturing facilities. It changes payment of the adult use cannabis excise tax to a quarterly schedule.

Statutes affected:
Bill Text LD 1942, HP 1301: 36.1818, 36.4923, 36.4924, 36.4925