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.