MISSISSIPPI LEGISLATURE 2025 Regular Session To: Ways and Means By: Representative Horan House Bill 1896 (As Sent to Governor) AN ACT TO IMPOSE AN EXCISE TAX ON KRATOM PRODUCT; TO DEFINE THE TERMS "KRATOM PRODUCT", "KRATOM LEAF" AND "KRATOM LEAF EXTRACT" FOR THE PURPOSES OF THIS ACT; TO AMEND SECTION 27-69-15, MISSISSIPPI CODE OF 1972, TO REVISE PROVISIONS RELATING TO THE REMITTANCE OF THE TOBACCO EXCISE TAX ON PRODUCTS PURCHASED OUTSIDE THIS STATE UPON WHICH THE MISSISSIPPI TAX HAS NOT BEEN IMPOSED; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. (1) For purposes of this section, the following words and phrases have the meanings ascribed in this subsection unless the context clearly requires otherwise: (a) "Kratom leaf" means the leaf of the kratom plant (Mitragyna speciosa) in fresh or dehydrated (dried) form and subjected to no post-harvest processing other than: (i) Drying or size reduction (e.g., by cutting, milling, or similar procedure); and (ii) Cleaning or sterilization through the application of heat, steam, pressurization, irradiation or other standard treatments applied to food ingredients. (b) "Kratom leaf extract" means the material extracted from kratom leaves via application of a solvent consisting of water, ethanol or food grade carbon dioxide, or any other solvent allowed by federal or state regulation to be used in the manufacturing of a food ingredient. (c) "Kratom product" means a food or dietary supplement that consists of or contains kratom leaf or kratom leaf extract. (2) In addition to any other tax provided for by law, there imposed, levied and assessed, a tax on each person or dealer in kratom product upon the sale, use, consumption, handling or distribution in the State of Mississippi, an excise tax at the rate of twenty-five percent (25%) of the manufacturer's list price. This tax is levied upon the sale, use, gift, possession or consumption of kratom product within the State of Mississippi, and the impact of the tax levied by this section is hereby declared to be on the vendee, user, consumer or possessor of kratom product in this state; and when said tax is paid by any other person, such payment shall be considered as an advance payment and shall thereafter be added to the price of the kratom product and recovered from the ultimate consumer or user. SECTION 2. Section 27-69-15, Mississippi Code of 1972, is amended as follows: 27-69-15. Any retailer, transient vendor, distributing agent, salesman, or other dealer who shall receive any cigarettes other than from a wholesaler having a permit as herein provided, and not having the necessary stamps already affixed, shall, after the receipt of such cigarettes, within the time limit herein provided, present the same to some wholesaler having such permit, for the affixing of the stamps required, and it shall be the duty of such wholesaler, thereupon and upon the payment to him by such retailer of the face value of the stamps required, to affix the stamps to said cigarettes in the same manner as if the cigarettes were handled and sold by such wholesaler, provided, that such wholesaler, before affixing the stamps, shall require of the retailer, transient vendor, distributing agent, salesman, or other dealer, the original invoice for the cigarettes to be stamped, and such wholesaler shall in each instance note upon the invoice, the denominations and number of stamps affixed to the cigarettes covered by said invoice, the notation to be made in ink, or other manner not easy to erase, at the time the stamps are affixed. It is further provided that, in addition hereto, the wholesaler shall keep a separate record of all stamps affixed to taxable cigarettes presented by retailers, transient vendors, distributing agents, salesmen, or other dealers, showing the name of the retailer, transient vendor, distributing agent, salesman, or other dealer, name of the shipper, date of shipper's invoice, the date stamps were affixed, denomination of stamps affixed, and total value of stamps affixed. When the request is made to any wholesaler in this state by a retailer, transient vendor, distributing agent, salesman, or other dealer in this state, said request being duly and seasonably made for the affixing of stamps, and the request is accompanied by proper remittance and invoice, and such wholesaler refuses to affix the stamps to cigarettes as requested, said wholesaler shall forfeit to the state a penalty of Twenty-five Dollars ($25.00) for each offense, the same to be collected by the commissioner and, in addition thereto, in the discretion of the commissioner, forfeit his permit to handle stamps. In the event of such refusal on the part of any wholesaler to affix stamps said retailer, transient vendor, distributing agent, salesman, or other dealer may make application to the commissioner for stamps to be placed on the cigarettes upon which the wholesaler refused to affix the stamps, said application to be accompanied by an affidavit from the retailer, transient vendor, distributing agent, salesman, or other dealer, or some other credible person, setting forth the facts, whereupon the commissioner may issue and sell to such retailer, transient vendor, distributing agent, salesman, or other dealer, a sufficient number of stamps to be affixed to the cigarettes. Stamps shall not be affixed to any cigarettes except by a wholesale dealer having a permit, except as otherwise provided in this chapter. Stamps shall not be required to be affixed to any cigarettes while the same is in interstate commerce. * * * Any person who receives cigars, smoking tobacco, chewing tobacco, snuff or any other tobacco products except cigarettes from anyone other than a wholesaler having a tobacco permit issued by this state and the excise tax on the tobacco received has not been paid, shall compute the excise tax due the State of Mississippi at the rate prescribed herein on forms furnished by the commissioner for that purpose. Such report shall be accompanied by the remittance for the tax due and shall be filed with the commissioner within forty-eight (48) hours after receipt of the tobacco by such person. Any person engaged in this state in the business of making wholesale or retail sales of other tobacco products including cigars, smoking tobacco, chewing tobacco, snuff or any other tobacco products except cigarettes and heated tobacco products who purchases such products from a wholesaler or manufacturer outside this state upon which the Mississippi tobacco excise tax has not been imposed, shall be responsible for remitting the Mississippi tobacco excise tax directly to the Mississippi Department of Revenue by the twentieth of the month following the month the sale occurred of the other tobacco products by such person to a Mississippi customer. Any person making retail purchases of other tobacco products including cigars, smoking tobacco, chewing tobacco, snuff or any other tobacco products except cigarettes and heated tobacco products for personal use in this state who purchased such other tobacco products from outside this state upon which the Mississippi tobacco excise tax has not been imposed, shall be responsible for remitting the Mississippi tobacco excise tax directly to the Mississippi Department of Revenue within forty-eight (48) hours after the purchase of the other tobacco products. In no case shall the provisions of this chapter be construed to require the payment of a tax upon any tobacco upon which the tax herein levied has once been paid to the state. SECTION 3. This act shall take effect and be in force from and after July 1, 2025.
MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Ways and Means
By: Representative Horan
# House Bill 1896
## (As Sent to Governor)
AN ACT TO IMPOSE AN EXCISE TAX ON KRATOM PRODUCT; TO DEFINE THE TERMS "KRATOM PRODUCT", "KRATOM LEAF" AND "KRATOM LEAF EXTRACT" FOR THE PURPOSES OF THIS ACT; TO AMEND SECTION 27-69-15, MISSISSIPPI CODE OF 1972, TO REVISE PROVISIONS RELATING TO THE REMITTANCE OF THE TOBACCO EXCISE TAX ON PRODUCTS PURCHASED OUTSIDE THIS STATE UPON WHICH THE MISSISSIPPI TAX HAS NOT BEEN IMPOSED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) For purposes of this section, the following words and phrases have the meanings ascribed in this subsection unless the context clearly requires otherwise:
(a) "Kratom leaf" means the leaf of the kratom plant (Mitragyna speciosa) in fresh or dehydrated (dried) form and subjected to no post-harvest processing other than:
(i) Drying or size reduction (e.g., by cutting, milling, or similar procedure); and
(ii) Cleaning or sterilization through the application of heat, steam, pressurization, irradiation or other standard treatments applied to food ingredients.
(b) "Kratom leaf extract" means the material extracted from kratom leaves via application of a solvent consisting of water, ethanol or food grade carbon dioxide, or any other solvent allowed by federal or state regulation to be used in the manufacturing of a food ingredient.
(c) "Kratom product" means a food or dietary supplement that consists of or contains kratom leaf or kratom leaf extract.
(2) In addition to any other tax provided for by law, there imposed, levied and assessed, a tax on each person or dealer in kratom product upon the sale, use, consumption, handling or distribution in the State of Mississippi, an excise tax at the rate of twenty-five percent (25%) of the manufacturer's list price. This tax is levied upon the sale, use, gift, possession or consumption of kratom product within the State of Mississippi, and the impact of the tax levied by this section is hereby declared to be on the vendee, user, consumer or possessor of kratom product in this state; and when said tax is paid by any other person, such payment shall be considered as an advance payment and shall thereafter be added to the price of the kratom product and recovered from the ultimate consumer or user.
SECTION 2. Section 27-69-15, Mississippi Code of 1972, is amended as follows:
27-69-15. Any retailer, transient vendor, distributing agent, salesman, or other dealer who shall receive any cigarettes other than from a wholesaler having a permit as herein provided, and not having the necessary stamps already affixed, shall, after the receipt of such cigarettes, within the time limit herein provided, present the same to some wholesaler having such permit, for the affixing of the stamps required, and it shall be the duty of such wholesaler, thereupon and upon the payment to him by such retailer of the face value of the stamps required, to affix the stamps to said cigarettes in the same manner as if the cigarettes were handled and sold by such wholesaler, provided, that such wholesaler, before affixing the stamps, shall require of the retailer, transient vendor, distributing agent, salesman, or other dealer, the original invoice for the cigarettes to be stamped, and such wholesaler shall in each instance note upon the invoice, the denominations and number of stamps affixed to the cigarettes covered by said invoice, the notation to be made in ink, or other manner not easy to erase, at the time the stamps are affixed.
It is further provided that, in addition hereto, the wholesaler shall keep a separate record of all stamps affixed to taxable cigarettes presented by retailers, transient vendors, distributing agents, salesmen, or other dealers, showing the name of the retailer, transient vendor, distributing agent, salesman, or other dealer, name of the shipper, date of shipper's invoice, the date stamps were affixed, denomination of stamps affixed, and total value of stamps affixed.
When the request is made to any wholesaler in this state by a retailer, transient vendor, distributing agent, salesman, or other dealer in this state, said request being duly and seasonably made for the affixing of stamps, and the request is accompanied by proper remittance and invoice, and such wholesaler refuses to affix the stamps to cigarettes as requested, said wholesaler shall forfeit to the state a penalty of Twenty-five Dollars ($25.00) for each offense, the same to be collected by the commissioner and, in addition thereto, in the discretion of the commissioner, forfeit his permit to handle stamps. In the event of such refusal on the part of any wholesaler to affix stamps said retailer, transient vendor, distributing agent, salesman, or other dealer may make application to the commissioner for stamps to be placed on the cigarettes upon which the wholesaler refused to affix the stamps, said application to be accompanied by an affidavit from the retailer, transient vendor, distributing agent, salesman, or other dealer, or some other credible person, setting forth the facts, whereupon the commissioner may issue and sell to such retailer, transient vendor, distributing agent, salesman, or other dealer, a sufficient number of stamps to be affixed to the cigarettes.
Stamps shall not be affixed to any cigarettes except by a wholesale dealer having a permit, except as otherwise provided in this chapter.
Stamps shall not be required to be affixed to any cigarettes while the same is in interstate commerce.
* * * Any person who receives cigars, smoking tobacco, chewing tobacco, snuff or any other tobacco products except cigarettes from anyone other than a wholesaler having a tobacco permit issued by this state and the excise tax on the tobacco received has not been paid, shall compute the excise tax due the State of Mississippi at the rate prescribed herein on forms furnished by the commissioner for that purpose. Such report shall be accompanied by the remittance for the tax due and shall be filed with the commissioner within forty-eight (48) hours after receipt of the tobacco by such person.
Any person engaged in this state in the business of making wholesale or retail sales of other tobacco products including cigars, smoking tobacco, chewing tobacco, snuff or any other tobacco products except cigarettes and heated tobacco products who purchases such products from a wholesaler or manufacturer outside this state upon which the Mississippi tobacco excise tax has not been imposed, shall be responsible for remitting the Mississippi tobacco excise tax directly to the Mississippi Department of Revenue by the twentieth of the month following the month the sale occurred of the other tobacco products by such person to a Mississippi customer.
Any person making retail purchases of other tobacco products including cigars, smoking tobacco, chewing tobacco, snuff or any other tobacco products except cigarettes and heated tobacco products for personal use in this state who purchased such other tobacco products from outside this state upon which the Mississippi tobacco excise tax has not been imposed, shall be responsible for remitting the Mississippi tobacco excise tax directly to the Mississippi Department of Revenue within forty-eight (48) hours after the purchase of the other tobacco products.
In no case shall the provisions of this chapter be construed to require the payment of a tax upon any tobacco upon which the tax herein levied has once been paid to the state.
SECTION 3. This act shall take effect and be in force from and after July 1, 2025.