Kentucky Bill Would Set Regulatory License Fees for Cannabis Beverage Sales

A bill proposed in Kentucky would impose a 4% regulatory licensing fee on
sales of cannabis-infused drinks and alcoholic beverages sold to customers
by retailers in the state. The legislation also would create new wholesale
license fees for kratom, hemp-derived, and cannabinoid
products, and establish procedures for retailers and
wholesalers operating in the market.

The measure would also impose a $0.016 wholesale-level regulatory license
fee per milliliter or milligram of THC in cannabis-infused beverages.

Under the proposal, 0.5% of the collected fees would be directed to the
state’s Alcohol Wellness and Responsibility Education Fund. The measure
would also add new provisions to the Food, Drug, and Cosmetic Act, creating
laboratory testing standards and procedures for the Kentucky Department for
Public Health.

If approved, the bill would sunset the state’s current excise, wholesale,
and any other taxes on cannabis and alcoholic beverages on July
1, 2027, and replace them with the new regime. It would also direct cities
and counties to reduce the regulatory license fee to 3% within 4
years, and would limit cities and counties in the future to a 1% regulatory
license fee on the products.

The bill is currently in the House Appropriations and Revenue Committee.