A legislative committee in Nebraska has approved a measure that would impose a 100% tax on CBD and hemp products in the state. The committee approved the bill in a 7 to 0 vote. It is expected that the state’s unicameral legislature will take up the proposed legislation later this week.
According to the bill’s sponsor, Senator Lou Ann Linehan, this tax hike is focused on bringing in additional funds to help offset property tax bills. The bill also includes reforms such as the elimination of sales tax exemptions on candy, soda, pet services, lottery tickets and ad revenue. This is expected to bring in more than $180 million in new revenue for Nebraska.
Former Nebraska state senator Adam Morfeld was shocked by the proposal. Morfeld, who cochairs Nebraskans for Medical Marijuana, conveyed his thoughts on the popular social media site X. Senator Julie Slama shared Morfeld’s concerns, stating that she was 100% opposed to the measure. She noted that the overall measure would be the biggest tax increase in the state’s history.
The sentiment doesn’t appear to be shared by all, however, as Governor Jim Pillen congratulated the committee for passing the tax measure. In a press release, Pillen applauded the members for advancing transformational and historic property tax relief and reform to the floor for debate.
This measure comes as Nebraska, much like many other states across the nation, try to deal with the proliferation of hemp-derived products that include cannabinoids such as delta-8 THC. Toward the end of 2023, Mike Hilgers, Nebraska attorney general, filed a lawsuit against retailers over their sale of delta-8 products.
Currently, the recreational and medical use of cannabis is illegal in the state. Since July 2023, Nebraskans for Medical Marijuana organizers have petitioned for a change in policy. Gov. Pillen voiced his opinion on cannabis reform in September 2023, stating that the drug’s legalization posed harm to children. The governor added that medical marijuana needed only be accessible if it was approved by the FDA.
Despite his stance, advocates hope to change this through a ballot initiative that they plan to include on the November ballot. They hope that the initiative will be approved as a recent survey found that 70% of Nebraskans supported the legalization of medical cannabis.
The survey, carried out for Neilan Strategy Group, shows that Nebraskans are clearly ready to legalize medical cannabis. This year marks the third time Nebraskans for Medical Marijuana has tried getting the issue before Nebraskans following failed attempts to gain favor with the state’s legislature on the matter.
The evolving laws on hemp and CBD products could over time create a vibrant market for instrumentation companies such as Astrotech Corp. (NASDAQ: ASTC) that design and commercialize different equipment, such as process control solutions targeting facilities that manufacture products from hemp.
NOTE TO INVESTORS: The latest news and updates relating to Astrotech Corp. (NASDAQ: ASTC) are available in the company’s newsroom at https://cnw.fm/ASTC
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