UtahSpecialized product sellers would follow state license and tax rules
Beginning January 1, 2027, Utah retailers and consumers would follow licensing, registration, tax, and enforcement rules for cannabinoid and kratom products.
What it does
Retailers of cannabinoid and kratom products would need a state license, a fixed selling location, and a financial guarantee before selling.
The text sets a 5.3% tax on specialized products and allows registration fees for cannabinoid and kratom products through January 1, 2029.
Unlicensed or unregistered sellers could face misdemeanor charges, fines, and product seizure; enforcement money could be spent only if lawmakers approve it.
Argument forClear licenses, taxes, and penalties could give regulators more tools to track specialized products and address unlawful sales.
Argument againstRetailers and consumers could face added costs and paperwork from licenses, bonds, product fees, tax collection, and self-reporting duties.
More detail
Retailers would need a state license before selling specialized products. This applies to retailers selling cannabinoid or kratom products to consumers in Utah. A retailer would apply on a form from the State Tax Commission. The license would cover one physical business address and require a bond of at least $500 when the retailer collects the product tax. The licensing provisions would apply beginning January 1, 2027; a fixed-location license would last three years.
The text would impose a 5.3% tax on specialized products and allow product registration fees. The tax would apply to cannabinoid and kratom products sold to consumers; registration fees could apply to cannabinoid and kratom products. Retailers would generally collect the tax when a product is sold. Consumers who receive an untaxed product would generally have to report it and pay the tax, with an exception for a nonresident tourist's personal use in Utah. The State Tax Commission could set registration fees until January 1, 2029. These tax and fee provisions would apply beginning January 1, 2027; the stated authority to set registration fees would last until January 1, 2029.
People who sell without the required license or registration could face criminal penalties, fines, and other enforcement actions. These rules cover retailers and other people who sell or offer unlicensed or unregistered cannabinoid and kratom products. Selling without the required license would be a class B misdemeanor and could bring a $1,000 administrative fine for a retailer. Selling an unregistered product could bring a fine of up to $5,000, and the department could seize and destroy an unregistered kratom product. Money in the restricted account could support enforcement, investigations, grants, and payments to local governments, subject to legislative approval of spending. The penalties and account-use provisions would apply beginning January 1, 2027.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 26Governor Spencer Cox SignedBecame Law
- Mar 13Senate/ to GovernorTo Governor
- Mar 13Senate/ received enrolled bill from PrintingMinor
- Mar 11Senate/ enrolled bill to Printing
- Mar 11Enrolled Bill Returned to House or SenateMinor
- Mar 6Draft of Enrolled Bill Prepared
- Mar 6Bill Received from Senate for EnrollingMinor
- Mar 6Senate/ signed by President/ sent for enrollingMajor
- Mar 6Senate/ received from HouseMinor
- Mar 5House/ to Senate
- Vote recorded Senate/ concurs with House amendment. Result: pass.Upper
- Vote recorded House/ passed 3rd reading. Result: pass.Lower
- Mar 5House/ signed by Speaker/ returned to SenateMajor
- Mar 5House/ received from SenateMinor
- Mar 5Senate/ to House
- Mar 5Senate/ concurs with House amendmentMajor
- Mar 5Senate/ placed on Concurrence Calendar
- Mar 5Senate/ received from HouseMinor
- Mar 5House/ to Senate
- Mar 5House/ passed 3rd readingPassed House
- Mar 5House/ 3rd readingMinor
- Mar 4House/ Rules to 3rd Reading Calendar
- Feb 11House/ return to Rules due to fiscal impact [House Rules Committee]
- Feb 9House/ 2nd readingMinor
- Feb 9House/ comm rpt/ amended [House Revenue and Taxation Committee]Major
- Feb 6House Comm - Favorable Recommendation [House Revenue and Taxation Committee]Minor
- Feb 6House Comm - Amendment Recommendation [House Revenue and Taxation Committee]Minor
- Feb 3House/ to standing committee [House Revenue and Taxation Committee]Minor
- Jan 26House/ 1st reading (Introduced)Minor
- Jan 26House/ received from SenateMinor
- Jan 23Senate/ to House
- Vote recorded Senate/ passed 3rd reading. Result: pass.Upper
- Jan 23Senate/ passed 3rd readingPassed Senate
- Jan 23Senate/ 3rd readingMinor
- Jan 22Senate/ passed 2nd readingMinor
- Vote recorded Senate/ passed 2nd reading. Result: pass.Upper
- Jan 22Senate/ 2nd readingMinor
- Jan 22Senate/ placed on 2nd Reading Calendar
- Jan 22Senate/ comm rpt/ amended [Senate Business and Labor Committee]Major
- Jan 21Senate Comm - Favorable Recommendation [Senate Business and Labor Committee]Minor
- Jan 21Senate Comm - Amendment Recommendation [Senate Business and Labor Committee]Minor
- Jan 20Senate/ to standing committee [Senate Business and Labor Committee]Minor
- Jan 20Senate/ received fiscal note from Fiscal AnalystMinor
- Jan 20LFA/ fiscal note publicly available for SB0101
- Jan 20Senate/ 1st reading (Introduced)Minor
- Jan 16LFA/ fiscal note sent to sponsor for SB0101
- Jan 12Senate/ received bill from Legislative ResearchMinor
- Jan 7LFA/ bill sent to agencies for fiscal input for SB0101
- Jan 7LFA/ bill assigned to staff for fiscal analysis for SB0101
- Jan 7Numbered Bill Publicly Distributed
- Jan 7Bill Numbered but not DistributedIntroduced
Consumer ProtectionTaxes & BudgetPublic Safety