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

Nebraska's LB 873 imposes a 10% excise tax on retail sales of kratom products starting July 1, 2027, requiring retailers to maintain electronic sales records and file monthly tax returns. It updates the definition of "adulterated" kratom products to include those containing specific alkaloids (like 7-hydroxymitragynine) without meeting legal definitions or mixed with dangerous non-kratom substances. Retailers and processors face escalating penalties: up to $1,000 for first violations, $5,000 for second, and up to $20,000 for third violations, with processors risking a 3-year sales ban for selling adulterated products. The tax revenue will fund the Property Tax Credit Cash Fund, and retailers may avoid penalties if they reasonably relied on a processor's representation that a product was compliant.