DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 560 Engrossed 2019 Regular Session Abramson
Abstract: Authorizes the levy of an excise tax at the rate of 3% on the retail sale of hemp-derived
CBD products.
Present law imposes state sales and use taxes on the sale, use, lease, or rental of tangible personal
property.
Proposed law retains present law and levies an excise tax on the sale of hemp-derived CBD products
by a retailer to a consumer at the rate of 3% based on the retail sales price of these products, in
addition to other taxes, including state and local sales and use taxes.
Proposed law defines "CBD" as cannabidiol.
Proposed law defines "hemp" as any part of the plant Cannabis sativa, including the seeds and all
derivatives, with a delta-9-tetrahydrocannabinol concentration of not more than 0.3% on a dry weight
basis. Hemp does not include plants that meet the definition of marijuana.
Proposed law further defines a "Hemp-derived CBD product" as any hemp-derived product that
contains CBD and is intended for consumption or topical use.
Proposed law authorizes the Dept. of Revenue to collect, supervise, and enforce the collection of
taxes, penalties, and interest related to the excise tax. Further authorizes the Dept. of Revenue to
promulgate rules and regulations to implement the provisions of proposed law.
Proposed law dedicates the avails of the excise taxes levied on hemp to the Early Childhood
Education Fund.
Effective if and when House Bill No. 579 of this 2019 R.S. is enacted and becomes effective.
(Applicable for all tax periods beginning on or after Jan. 1, 2020.)
(Adds R.S. 47:1692 through 1696)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill: 1. Change the name of and references to the tax from hemp and CBD tax to hemp-derived
CBD tax.
2. Decrease the excise tax rate from 15% of the retail sales price of hemp-derived CBD
products to 3% of the retail sales price of hemp-derived CBD products.
3. Define hemp-derived CBD products as any hemp-derived product that contains CBD
intended for consumption or topical use.
4. Remove the requirement for a consumer to be 21 years of age or older to purchase hemp-
derived products.
5. Remove requirement for tax stamps to be purchased and affixed to containers or
packages of CBD, CBD products, hemp, and hemp products.
6. Change the contingent effectiveness of proposed law from enactment of HB No. 138
from the 2019 R.S. to enactment of HB No. 579 of the 2019 R.S.
7. Change the dedication of funds derived from the excise tax from the New Opportunities
Waiver Fund to the Early Childhood Education Fund.