Kentucky
Kentucky bill would change how alcohol, cannabis beverages are taxed
LEXINGTON, Ky. (WKYT) – A bill that would change how alcohol and cannabis-infused beverages are taxed is under consideration in Frankfort.
House Bill 9 would impose a 4% state retail regulatory license fee on all sales of alcoholic beverages and cannabis-infused beverages to consumers by retailers.
The bill would also establish state wholesale regulatory license fees on those same products and, for the first time, bring kratom, hemp-derived, and cannabinoid products into the formal tax structure.
How the tax would be calculated
Annie Rouse, CEO and founder of CannaBuzz, said the tax itself is not the problem, but how it is calculated could be.
“Right now it kind of seems like nickel and diming at every part of the supply chain,” Rouse said.
Rouse said the introduction of House Bill 9 means retailers may not be able to absorb the cost of supply chain and retail taxes, eventually passing those costs on to customers. She said the tax would be applied per milligram of THC in a product, rather than on the product’s value — a structure she said mirrors a similar shift happening in the alcohol industry.
“That is also happening with alcohol — they’re moving away from the value tax and moving it to a by-alcohol-volume tax,” Rouse said.
“So kind of taxed on multiple levels. There’s still some work that needs to be done to kind of maybe move some of those taxes around so it’s just one tax,” Rouse said.
Rouse said she is working with legislators to help them understand the best way for the state to earn tax revenue from the products without harming the industries.
“We need to find that sweet spot so that people aren’t going out of state and instead they’re staying here, they’re buying it here and then we’re continuing to support the economy,” Rouse said.
What customers say
Until the bill is passed, it is unclear how much of a financial impact the tax would have on customers. Customers told WKYT that because cannabis-infused drinks and alcohol are entertainment purchases, those products would be among the first cut from their budgets.
“It’s already an expensive product and, you know, I don’t want to spend an extra four dollars on my sleep gummies or my beer,” said Will Partain, a customer who buys products in both industries.
Partain said a price increase would stop him from shopping local. He said if local companies raise their prices, he would shift to major brands and buy less overall.
What else is in the bill
Beyond the new fee structure, House Bill 9 would repeal Kentucky’s existing excise and wholesale taxes on alcoholic and cannabis-infused beverages on July 1, 2027, replacing them with the new regulatory license fee system.
The bill would also direct 0.5% of collected state retail regulatory license fees to the Alcohol Wellness and Responsibility Education Fund and create new public health laboratory and testing standards for cannabis-infused beverages, kratom, hemp, and cannabinoid products.
Under the bill, local governments in moist or wet cities and counties would gain new authority to impose their own local regulatory license fees. Existing local fees would be required to drop to 3% within four years; future fees would be capped at 1%.
The bill also includes a permanent prohibition on retail licensees using a premises where alcohol was sold to minors three or more times within 24 months.
Timeline
The bill includes an emergency clause, meaning most provisions could take effect immediately if signed into law. The full tax overhaul — including the sunset of existing excise and wholesale taxes and the full implementation of the new regulatory license fee system — would not take effect until July 1, 2027.
Copyright 2026 WKYT. All rights reserved.
13 things more likely to happen than winning the Powerball jackpot
Hoping to win the Powerball jackpot? Here are 13 things more likely to happen than becoming an instant millionaire.
The Kentucky Lottery offers multiple draw games for those aiming to win big.
Here’s a look at Thursday, June 25, 2026 winning numbers for each game.
Cash Ball
02-08-24-32, Cash Ball: 09
Check Cash Ball payouts and previous drawings here.
Pick 3
Evening: 6-3-0
Midday: 9-6-0
Check Pick 3 payouts and previous drawings here.
Pick 4
Evening: 5-7-6-0
Midday: 5-2-6-6
Check Pick 4 payouts and previous drawings here.
Millionaire for Life
03-13-14-34-45, Bonus: 01
Check Millionaire for Life payouts and previous drawings here.
Feeling lucky? Explore the latest lottery news & results
This results page was generated automatically using information from TinBu and a template written and reviewed by a Courier Journal digital producer. You can send feedback using this form.
On Thursday, Kentucky’s home and away SEC opponents for the 2026-27 season were revealed and on top of learning the three opponents who they will play twice, there are some very intriguing matchups. In conference play, Kentucky will face six teams who are among the top 25 in many preseason rankings.
In SEC play, Kentucky will play Tennessee, Vandy and Ole Miss all both home and away. The home matchups include Alabama, Arkansas, Auburn, LSU, Ole Miss, South Carolina, Tennessee, Texas A&M and Vandy. As for the road tilts, the Wildcats will face Florida, Georgia, Mississippi State, Missouri, Ole Miss, Oklahoma, Texas, Tennessee and Vandy. Let’s take a look at some interesting developments from the schedule release.
John Calipari returns to Rupp Arena (again)
In Calipari’s first year with Arkansas, he got the best of Kentucky when he came into Rupp Arena and left with a 10-point victory, a game where you could really feel the tension all game long in the building from Kentucky fans, which translated onto the court with the players. Last season, it was Kentucky who shocked everyone when they stole one on the road against a top 20 Arkansas team after a rough up-and-down season up to that point. Now, the two will face off again as Kentucky will look to get the win in Rupp and make sure Calipari doesn’t get two in a row in the building. It’ll be another highly-anticipated showdown.
Kentucky hits the road at Texas
This is shaping up to be a major challenge for Kentucky next season and may even end up being one of the biggest games of the season. Texas is seen by many as a clear top 10 team, with some even having them within the top five and when you combine that with the fact that the game is on the road, the Wildcats will have their hands full. The Wildcats fell to the longhorns in the 2024-25 season, and it’ll be a much stiffer challenge this time.
Which game could be a trap?
We don’t have the game-by-game dates yet, so it’s hard to say with a lot of confidence, but opponent-wise, Georgia could really give Kentucky fits. In Pope’s first year, his team struggled handling the physicality of the Bulldogs and now, they’ve retained one of their best guards for another year and have added physicality through the portal. Mike White’s teams love to make opponents uncomfortable and they could do that once again down in Athens. Another sneaky team to watch is Oklahoma, who will have very good guard play. Kentucky will face both teams on the road.
Overall, it’s a pretty fair SEC schedule for a Kentucky team who has the capability of a return to being atop the conference once again. Mark Pope has such a system-fit squad and he can do some damage in the SEC.
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Fourth of July festivities to celebrate in Louisville
See the Fourth of July festivities planned in Louisville for America’s 250th birthday celebration.
Fourth of July is almost here, and Kentuckians are getting ready to light up the sky.
Before you plan your fireworks celebrations, it’s important to know what is and isn’t allowed under Kentucky law. Here’s what to know about fireworks laws and safety tips in the Bluegrass State ahead of Independence Day.
Can you set off fireworks in Kentucky?
Yes. As long as you live in a place where local ordinances don’t prohibit it, according to the Kentucky State Fire Marshal’s website.
Are fireworks legal in Louisville?
In Louisville or Jefferson County, larger display fireworks are not legal due to a local law. Some consumer products that don’t leave the ground, such as sparklers, are allowed.
If the cautionary label on the firework has the words “explosive,” “emits flaming pellets,” “flaming balls,” “firecracker,” “report” or “rocket,” it is automatically a no-go, according to the Louisville-Jefferson County Code of Ordinances.
But, smaller ones like sparklers, cylindrical or cone fountains, wheels and ground spinners are legal. Still, don’t let the size fool you − they can burn up to 1,200 degrees Fahrenheit, according to the National Fire Protection Association.
Learn more: Check out these 4th of July events taking place across Kentucky
How to use fireworks safely
The state fire marshal suggests following the following advice when using fireworks:
- Use fireworks outdoors.
- Obey local laws.
- Keep a bucket of water or a working water hose nearby.
- Use fireworks as intended and avoid altering them or combining them.
- Never relight “dud” fireworks. Wait 20 minutes and then soak it in a bucket of water.
- Spectators should keep a safe distance from the person lighting the firework (the individual lighting it should wear safety glasses).
- Alcohol and fireworks do not mix. Have a “designated adult operator.”
- Do not use homemade fireworks or illegal explosives.
- Report illegal explosives to the fire or police department in your community.
- Never allow children to play with or ignite fireworks.
- Read and follow all instructions on the label.
Former Courier Journal reporter Ana Rocío Álvarez Bríñez contributed. Reach Marina Johnson at Marina.Johnson@courier-journal.com.
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