Beginning January 1, 2027, Utah retailers and consumers would follow licensing, registration, tax, and enforcement rules for cannabinoid and kratom products.
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.
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.
No hearings or votes scheduled.