Bill > HB636

This bill establishes a comprehensive cannabis taxation framework in Louisiana, creating a 15% excise tax on wholesale cannabis sales across different product categories including buds, leaves, immature plants, seeds, and wet whole plants. The bill provides detailed definitions for cannabis-related terms and establishes a method for calculating tax based on an "average market rate" determined annually by the state's Department of Revenue. The tax applies to wholesale sales from cannabis production facilities to cannabis retailers, with tax calculations varying by product type (weight or count). Notably, the bill exempts medical marijuana obtained under existing medical marijuana provisions. All tax proceeds will be deposited into the state general fund, with the legislature required to annually appropriate an equivalent amount to the minimum foundation program, specifically to fund salary increases for K-12 public school teachers and full-time school support personnel. The taxation system will begin on January 1, 2026, with an initial period where the average market rate will be estimated based on projected wholesale prices. The Department of Revenue is granted authority to create rules, collect taxes, and enforce the new cannabis tax regulations.

Budget and Finance

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB636&sbi=y