Proposed 100% tax on CBD, hemp irks retailers; Nebraska senator says bill is work in progress

LINCOLN, Neb. (KLKN) – A bill in the Nebraska Legislature that aims to lower property taxes by increasing the sales tax could also affect CBD and hemp product users.

This week, the Revenue Committee filed an amendment to Legislative Bill 388 that included, among other proposals, a 100% tax on CBD and consumable hemp products.

Sarah Linden, owner of vape shop Generation V and Grateful Green Dispensary, said this tax would hurt her customers.

“So many of our guests are lower to middle income,” she said. “Some are elderly and on a fixed income. They cannot afford to pay twice as much for these products.”

Linden is worried that the increase could push many to look for other ways to purchase CBD and hemp.

“Consumers will turn to either the black market online or drive an hour to one of our many borders and purchase these products out of state, where they’re illegal and do not have an excise tax on them,” she said. “Then businesses in Nebraska, like mine, will be forced to shutter.”

Earlier this week, the Generation V location near 48th Street and Old Cheney Road was hit by thieves for the third time in just over a month.

WATCH: Masked thieves break into Lincoln vape shop, cause $4,500 in damage

Linden said right now, the thieves are high school students who are selling the products to make money.

But she is worried that a price hike on products that already cost $20 to $80 will make the problem worse.

“We’ve had to put security gates pretty much on all of our stores in Lincoln because it’s just rife with burglaries,” she said. “But I do expect that that could increase, and it could maybe not be minors, but actually the people who just really need these products and can’t afford them.”

Sen. Lou Ann Linehan of Omaha, who proposed the bill, said the 100% tax proposal is just the starting point of negotiation.

“Are we going to keep it 100%? No, we’re not,” she said. “I’ve already had one of our members tell me that, you know, elderly people like lotions and creams, and it helps with pain. So like I said, we just have to look with it.”

She said the bill will continue to be changed as the legislative session comes to an end.

“There’ll be all kinds of agreements and adjustments made,” Linehan said.

She predicted that the final bill will be full of compromises.

“You get something, but you lose something,” Linehan said.