A bill for an act establishing an excise tax on the sales price of consumable hemp products sold or purchased at bars or restaurants.(Formerly SSB 3186.)
Impact
The implications of SF2417 are significant for both consumers and businesses involved in the hemp industry. By setting a specific tax structure for consumable hemp, the bill clarifies the tax obligations for bars and restaurants that sell such products. This could lead to increased revenue for the state while also establishing a regulatory framework that distinguishes hemp products from traditional taxable goods. However, this excise tax may increase costs for consumers at these establishments, potentially influencing market demand for hemp products.
Summary
Senate File 2417 establishes an excise tax on the sales price of consumable hemp products sold or purchased at bars and restaurants in Iowa. Specifically, the bill imposes a tax of 25 percent on these sales, while exempting them from the regular sales tax. The Iowa Department of Revenue is tasked with administering this new excise tax, ensuring that it aligns with existing sales and use tax laws in the state. The collected funds from this tax will be deposited into the state’s general fund.
Contention
During discussions surrounding SF2417, there were various points of contention, particularly regarding the impact on local businesses and consumers. Opponents raised concerns that a high excise tax could hinder the growth of the nascent hemp market and make these products less accessible to Iowa residents. Supporters argued that the tax would generate necessary revenue for state services and create a sustainable model for the consumption of hemp products. Balancing public health and fiscal responsibility was a recurring theme in the legislative debate.
A bill for an act relating to the taxation and regulation of alternative nicotine products and vapor products, creating the Iowa cancer research fund, and including effective date provisions.(Formerly SF 475, SSB 1137.)
A bill for an act imposing a tax on certain products containing nicotine or nonnicotine substances, creating the Iowa cancer research fund, and including effective date provisions.(Formerly SSB 1137; See SF 638.)
A bill for an act relating to civil liability and associated insurance requirements of alcoholic beverage licensees or permittees who also sell or serve consumable hemp products.(Formerly SSB 3195.)
A bill for an act relating to the regulation of certain tobacco products, providing penalties, and including effective date provisions. (Formerly SSB 1128.) Effective date: 01/01/2025.
To Provide For The Regulation Of Consumable Hemp Products By The Arkansas Tobacco Control Board; And To Amend The Arkansas Law To Allow Regulation And Purchase Of Consumable Hemp Products.