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LB 873

Provide for an excise tax on kratom products and change provisions of the Kratom Consumer Protection Act relating to adulterated products

109th Legislature (2025-2026) Introduced by Bob Hallstrom

Nebraska bill imposes excise tax on kratom products and tightens regulations on adulterated kratom to generate state revenue while strengthening consumer safety standards.

Notice of hearing for February 11, 2026
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WeVote Research Nonpartisan
Bill Summary · LB 873

Legislative bill overview

LB 873 proposes implementing an excise tax on kratom products sold in Nebraska while simultaneously modifying the state's Kratom Consumer Protection Act, particularly regarding provisions that define and regulate adulterated products. The bill represents the state's attempt to generate revenue from kratom sales while strengthening product safety standards.

Why is this important

Kratom, a botanical substance with opioid-like properties, has grown in popularity but remains largely unregulated at the federal level, creating a patchwork of state regulations. This bill directly affects kratom consumers through potential price increases via taxation and kratom retailers through compliance costs, while also shaping what products can legally be sold based on purity and safety standards.

Potential points of contention

  • Tax burden and market impact: An excise tax on kratom will increase consumer costs and may shift purchases toward neighboring states without similar taxes, potentially reducing projected revenue and harming Nebraska retailers
  • Definition disputes: Changes to "adulterated product" standards could be interpreted differently by regulators and businesses, creating compliance uncertainty and potential legal challenges over what qualifies as adulterated
  • Public health vs. access debate: Consumer advocates may argue taxation restricts access to those seeking kratom as an alternative to opioids, while public health officials may support stricter regulations citing quality and safety concerns

Compiled from official sources — confirm details with the bill’s official record.

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