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Read. Follow. Verify.Kentucky HB 612 overhauls alcohol and hemp regulatory license fees, imposes new retail and wholesale fees effective July 2027, and declares an emergency
Last action · February 18, 2026: to Licensing, Occupations, & Administrative Regulations (H)Sponsor: Matt Koch
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What This Bill Proposed
Kentucky HB 612 establishes new state retail and wholesale regulatory license fees on alcoholic beverages, hemp-derived cannabinoids, and kratom products starting July 1, 2027, while restructuring tax provisions, corporate officer liabilities, and emergency funds. The bill also enacts immediate changes upon passage for certain auction, licensing, and transfer notice requirements, declaring an emergency.
The measure introduces a 4% state retail regulatory license fee on from alcoholic beverage sales and specific milligram-based fees on kratom and hemp-derived cannabinoids starting July 1, 2027, while imposing strict joint and several personal liability on corporate officers and LLC managers for unpaid fees.
- The Kentucky General Assembly is the state legislature responsible for enacting statutory laws and tax policies within the Commonwealth. context
- The Department of Revenue administers state tax laws, license fees, and reporting compliance for businesses operating within Kentucky. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Alcoholic beverage retailers
Retailers must pay a 4% state retail regulatory license fee on gross receipts, file monthly reports by the twentieth day of each month, and maintain records for four years.
Wholesalers and distributors
Wholesalers and distributors are subject to wholesale regulatory license fees of $0.004 per milliliter of alcohol, reporting requirements, and joint liability rules.
Retailers of hemp-derived cannabinoid and kratom products
Retailers must pay new milligram-based state retail regulatory license fees, file monthly reports detailing product sales, and preserve records for four years.
Corporate officers and LLC managers
Corporate officers and LLC managers face personal, joint, and several liability for unpaid state retail and wholesale regulatory license fees.
Key Facts
- Beginning July 1, 2027, a state retail regulatory license fee of 4% is imposed on gross receipts derived from the sale of alcoholic beverages to consumers in Kentucky.
- Beginning July 1, 2027, a state wholesale regulatory license fee is imposed at a rate of $0.004 per milliliter of alcohol on wholesalers, distributors, distillers, small farm wineries, manufacturers, and direct shippers.
- Microbreweries directly transferring barrels independent of a distributor are subject to tiered wholesale license rates based on annual volume, with exemptions for the first 1,500 barrels or 1,000 barrels depending on prior operating status.
- State retail regulatory license fees are levied on retailers of kratom products and extracts ranging from $0.04 to $8 per milligram of mitragynine depending on serving concentration.
Show all 9 facts
- A state retail regulatory license fee is levied on retailers of hemp-derived cannabinoid products at $0.16 per milligram or milliliter of delta-9, delta-8, or other tetrahydrocannabinol as labeled.
- President, vice president, secretary, treasurer, corporate officers, LLC managers, and general partners are held personally, individually, jointly, and severally liable for unpaid state retail and wholesale regulatory license fees.
- The Auditor of Public Accounts must conduct audits by January 1, 2028, of each local government imposing local regulatory license fees for the previous 10 fiscal years.
- Corporate officers or business managers who had no authority in the management of business or financial affairs at the time fees became due are exempt from personal liability.
- Violations of Sections 2 or 3 regarding regulatory fee returns and payments constitute a Class A misdemeanor.
Frequently Asked Questions
Are corporate officers personally responsible for unpaid regulatory fees under this bill?
How are hemp-derived cannabinoid and kratom products taxed under the bill?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
2 actions- Feb 18, 2026HouseCommitteeto Licensing, Occupations, & Administrative Regulations (H)
- Feb 10, 2026HouseIntroducedintroduced in House to Committee on Committees (H)
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Shift from Wholesale Taxes to Regulatory License Fees
The bill systematically repeals or replaces existing wholesale sales taxes on alcohol with new state retail and wholesale regulatory license fees expiring or taking effect in July 2027.
Connected Entities
Sources
apps.legislature.ky.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 85)
- Controversy60Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz45Current news / social attention level
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