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FISCAL NOTE
Senate Bill 255
Committee: Tourism Sponsor: Senator Rodger M. Smitherman
Analyst: Tiffany Weaver Date: 04/01/2025
Senate Bill 255 as introduced would levy a 6% sales tax on the sale of all novelty cannabinoid
products, beginning January 1, 2026 and would require the tax proceeds to be deposited into the
Novel Cannabinoid Safety (NCS) Fund, created by this bill.
This bill would increase the obligations of the Department of Revenue to: (1) issue (initial and
annual) retailer licenses to sell novelty cannabinoid products, beginning July 1, 2025; (2) report
certain information to the Legislature annually, beginning January 1, 2027; and (3) adopt rules
to implement the provisions of this bill. However, the increased obligations would be offset, in
whole or in part by the revenues deposited into the NCS Fund, which shall include: (1) the tax
proceeds generated from the 6% sales tax on novel cannabinoid products; (2) application filing
fees, which shall be determined by the Department by rule; and (3) civil penalties imposed by
Department, not to exceed $10,000 for violating the provisions of this bill.
In addition, this bill would also increase the obligations of the Department of Agriculture and
Industries, beginning January 1, 2026, to: (1) establish testing and labeling requirements for the
sale of novelty cannabinoid products prior to being sold; (2) establish standards and guidelines
for testing by independent, 3rd party laboratories; and (3) adopt rules to implement the
provisions of this bill. Any increased obligations would be offset, in part, by the $20 fee
collected for each novel cannabinoid product tested and labeled.