Rep Fontenot proposes 15% excise tax on consumable hemp products

The Louisiana House of Representatives convened on March 31, 2025, to discuss House Bill 187, a legislative proposal aimed at significantly increasing the excise tax on consumable hemp products. The bill, introduced by Representative Fontenot, seeks to raise the current tax rate from 3% to 15%, effective July 1, 2025. This increase applies to all retail sales of consumable hemp products, which are defined as items derived from industrial hemp containing cannabinoids, including cannabidiol (CBD) and THC, intended for consumption or topical use.

During the session, lawmakers engaged in a thorough examination of the bill's implications. Proponents argue that the increased tax rate could generate substantial revenue for the state, potentially funding various public services and initiatives. They highlighted the growing market for hemp products and the need for the state to capitalize on this trend. However, opponents raised concerns about the potential negative impact on local businesses and consumers, suggesting that such a steep tax increase could deter sales and push consumers toward unregulated markets.

The discussions also touched on the broader economic implications of the bill. Experts noted that while the tax increase could bolster state revenues, it might also lead to higher prices for consumers, which could reduce overall consumption of hemp products. This, in turn, could affect the burgeoning hemp industry in Louisiana, which has seen significant growth in recent years.

As the bill progresses through the legislative process, it remains to be seen how lawmakers will address the concerns raised during the debate. The next steps will involve further discussions and potential amendments before a final vote is scheduled. The outcome of House Bill 187 could have lasting effects on the state's hemp market and its regulatory landscape, making it a significant point of interest for both supporters and detractors alike.