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Senate hearing considers 10% excise tax and tighter safety rules for kratom (LB873)
Summary
Sen. Bob Hallstrom proposed LB873 to impose a 10% excise tax on kratom retail sales and to strengthen consumer protections (testing and removal of adulterated products); sponsor and proponents said the tax could be revenue neutral after startup costs, and no formal opposition testimony was recorded at the hearing.
Sen. Bob Hallstrom introduced LB873, which would impose a 10% excise tax on retail kratom products in addition to other state taxes and would clarify parts of the Kratom Consumer Protection Act by requiring independent third‑party testing before sale and removing adulterated products from the registered list.
Hallstrom noted a fiscal note estimating implementation costs (about $700,000 for initial setup) and projected revenue of roughly $1.2 million in a later year, suggesting the program may approach revenue neutrality after setup. He said the bill addresses product safety and revenue treatment to ensure regulated sales are overseen.
No proponents or opponents testified in person at the hearing, and one proponent letter was filed online. The sponsor indicated a willingness to answer committee questions and waived closing.
