Proposed Tax Could Make Delta-8 Way More Expensive in Louisiana

In just a week Louisiana could start the process of putting a 20% tax rate on hemp products like Delta-8 edible gummies or THC-A flower. An increased tax could benefit the state but could harm what has become an industry full of locally owned businesses, especially here in Louisiana.

Louisiana Hemp Tax Could Rise To 20%

Louisiana State Representative Bryan Fontenot is proposing that the state raise its tax on hemp products by 12%.

Currently in Louisiana consumable hemp products, things like Delta-8 edibles or THC-A hemp flower, are taxed at 3%.

Representative Fontenot wants to bring the tax up to 15% total, but Monroe Representative Mike Echols wants the tax even higher. Rep. Echols proposes the state raise the tax to 20%.

The Dangers Of THC

Anyone who took a D.A.R.E. class back in the day could tell you they learned that "marijuana is a gateway drug." That classic claim D.A.R.E. used to has been disputed over the years and the public is much more accepting of the plant now, but people like Rep. Echols are still cautious of "what could become an addictive product,"

Before everyone grabs their pitchforks (or pipes I guess?), it's important to point out that Rep. Echols isn't trying to stop people from enjoying a legal substance.

Echols pointed out that raising the tax could give the state more funding that they could funnel into researching the possible side effects of a substance still relatively new to the legal market.

"But we have to fund the service lines that are out there, addressing those that might have an addiction disorder" - Rep. Mike Echols.

A Higher Tax Might Be Needed

If Louisiana does raise the tax on hemp products to 20% or even just 15% the shock would be huge to stores who have built a business on the product. Currently, a $15 bag of delta-8 edibles would have a $0.45 tax, but a 15% tax would tack on $2.25, and a whole $3 under a 20% tax rate.

With D.O.G.E. cutting federal spending Louisiana is at risk of losing federal funds, which could be a huge blow to one of the most federally dependant states.