A key committee in the Nebraska Legislature has given approval to legislation that would place a substantial tax on the distribution of CBD and consumable hemp products.
Hemp.
Legislative Bill 34, sponsored by Senator Lou Ann Linehan (R), would place a 30% sales tax on CBD and consumable hemp products. Yesterday, the Revenue Committee, which is chaired by Senator Linehan, voted 6 to 1 to advance the measure.
If enacted, the bill would impose the sales tax on hemp products intended for consumption, which are defined as those containing up to 0.3% THC. The tax would not apply to hemp products made from stalks or seeds for fiber or food purposes, nor to federally approved pharmaceuticals.
Senator Linehan initially put forth the 30% tax idea in legislation she filed last month. During the regular session, she had also suggested a 100% tax on these products, which was later reduced to 25% before that proposal stalled. Linehan revised the proposal to establish a 30% tax, which was introduced as LB 34.
Earlier this month the Senate Judiciary Committee held hearings on two proposals to legalize recreational marijuana, including a licensed and regulated system of marijuana businesses.
In November, Nebraska voters will be given the opportunity to legalize medical marijuana.
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