House panel rejects amendment to raise excise tax on consumable hemp to 7%

House Bill 187 by Representative Fontenot, as amended to set an excise tax rate of 7% on consumable hemp products (reduced from a proposed 15% in the amendment), failed to clear the House Committee on Ways and Means on May 19.

Representative Fontenot framed the amendment as an equality measure, urging that “it matches the tax on medical marijuana” and seeking parity between consumers who buy THC products with a prescription and those who buy taxed consumable hemp products at retail. He said proceeds are dedicated to early childhood education and that the amendment was intended to create consistency in taxation.

Industry witnesses and licensed retailers strongly opposed the increase, saying repeated regulatory changes and higher excise taxes imperil small businesses. Bill Richard, co‑owner of a licensed consumable hemp retailer, told the committee that the industry “has experienced remarkable growth” but warned a higher excise tax would force store closures and drive consumers to unregulated sources. Several retail and manufacturing witnesses said they had invested substantial personal funds, described a decline in permitted retailers and argued a tax increase could shrink the legal market and reduce, not increase, state revenue.

Representative Fontenot said he supported measures to prevent sales to minors and was open to stronger testing resources, but that he sought fairness with medical marijuana taxation. The committee recorded a roll call on the motion; the vote failed with 2 yeas and 10 nays, and the bill did not pass the committee.