Kratom taxation

AN ACT Relating to the taxation of kratom; adding a new chapter 1
to Title 82 RCW; prescribing penalties; and providing an effective 2
date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. The definitions in this section apply 5
throughout this chapter unless the context clearly requires 6
otherwise.7
(1) "Affiliated" means related in any way by virtue of any form 8
or amount of common ownership, control, operation, or management.9
(2) "Board" means the liquor and cannabis board.10
(3) "Business" means any trade, occupation, activity, or 11
enterprise engaged in selling or distributing kratom products in this 12
state. 13
(4) "Distributor" means any person: 14
(a) Engaged in the business of selling kratom products in this 15
state who brings, or causes to be brought, into this state from 16
outside the state any kratom products for sale; 17
(b) Who makes, manufactures, fabricates, or stores kratom 18
products in this state for sale in this state; 19
S-3921.2
SENATE BILL 6196
State of Washington 69th Legislature 2026 Regular Session
By Senators Saldaña, Trudeau, and Valdez
Read first time 01/16/26. Referred to Committee on Labor & Commerce.
p. 1 SB 6196
(c) Engaged in the business of selling kratom products outside 1
this state who ships or transports kratom products to retailers or 2
consumers in this state; or 3
(d) Engaged in the business of selling kratom products in this 4
state who handles for sale any kratom products that are within this 5
state but upon which tax has not been imposed. 6
(5) "Kratom" means any part of the leaf of the plant Mitragyna 7
speciosa. 8
(6) "Kratom product" means any food, beverage, ingredient, 9
dietary supplement, or any other product, regardless of form, that is 10
intended for human consumption and contains kratom or any alkaloid 11
extract thereof, whether derived from kratom or synthetically 12
including, but not limited to, mitragynine, 7-hydroxymitragynine, or 13
any other compounds of the kratom plant. 14
(7) "Person" means any individual, receiver, administrator, 15
executor, assignee, trustee in bankruptcy, trust, estate, firm, 16
copartnership, joint venture, club, company, joint stock company, 17
business trust, municipal corporation, the state and its departments 18
and institutions, political subdivision of the state of Washington, 19
corporation, limited liability company, association, society, any 20
group of individuals acting as a unit, whether mutual, cooperative, 21
fraternal, nonprofit, or otherwise. "Person" excludes any person 22
immune from state taxation, including the United States or its 23
instrumentalities, and federally recognized Indian tribes and 24
enrolled tribal members, conducting business within Indian country.25
(8) "Place of business" means any place where kratom products are 26
sold or where kratom products are manufactured, stored, or kept for 27
the purpose of sale, including any vessel, vehicle, airplane, or 28
train. 29
(9) "Retail outlet" means each place of business from which 30
kratom products are sold to consumers. 31
(10) "Retailer" means any person engaged in the business of 32
selling kratom products to ultimate consumers. 33
(11)(a) "Sale" means any transfer, exchange, or barter, in any 34
manner or by any means whatsoever, for consideration, and includes 35
and means all sales made by any person. 36
(b) "Sale" includes a gift by a person engaged in the business of 37
selling kratom products, for advertising, promoting, or as a means of 38
evading the provisions of this chapter. 39
(12) "Taxable sales price" means: 40
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(a) In the case of a taxpayer that is not affiliated with the 1
manufacturer, distributor, or other person from whom the taxpayer 2
purchased kratom products, the actual price for which the taxpayer 3
purchased the kratom products; 4
(b) In the case of a taxpayer that purchases kratom products from 5
an affiliated manufacturer, affiliated distributor, or other 6
affiliated person, and that sells those kratom products to 7
unaffiliated distributors, unaffiliated retailers, or ultimate 8
consumers, the actual price for which that taxpayer sells those 9
kratom products to unaffiliated distributors, unaffiliated retailers, 10
or ultimate consumers; 11
(c) In the case of a taxpayer that sells kratom products only to 12
affiliated distributors or affiliated retailers, the price, 13
determined as nearly as possible according to the actual price, that 14
other distributors sell similar kratom products of like quality and 15
character to unaffiliated distributors, unaffiliated retailers, or 16
ultimate consumers; 17
(d) In the case of a taxpayer that is a manufacturer selling 18
kratom products directly to ultimate consumers, the actual price for 19
which the taxpayer sells those kratom products to ultimate consumers;20
(e) In the case of a taxpayer that has acquired kratom products 21
under a sale as defined in subsection (11)(b) of this section, the 22
price, determined as nearly as possible according to the actual 23
price, that the taxpayer or other distributors sell the same kratom 24
products or similar kratom products of like quality and character to 25
unaffiliated distributors, unaffiliated retailers, or ultimate 26
consumers; or 27
(f) In any case where (a) through (e) of this subsection do not 28
apply, the price, determined as nearly as possible according to the 29
actual price, that the taxpayer or other distributors sell the same 30
kratom products or similar kratom products of like quality and 31
character to unaffiliated distributors, unaffiliated retailers, or 32
ultimate consumers. 33
(13) "Taxpayer" means a person liable for the tax imposed by this 34
chapter. 35
(14) "Unaffiliated distributor" means a distributor that is not 36
affiliated with the manufacturer, distributor, or other person from 37
whom the distributor has purchased kratom products.38
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(15) "Unaffiliated retailer" means a retailer that is not 1
affiliated with the manufacturer, distributor, or other person from 2
whom the retailer has purchased kratom products. 3
NEW SECTION. Sec. 2. (1) There is levied and collected a tax 4
upon the sale, use, consumption, handling, possession, or 5
distribution of all kratom products in this state at a rate of 95 6
percent of the taxable sales price.7
(2)(a) Taxes under this section must be imposed at the time the 8
distributor: (i) Brings, or causes to be brought, into this state 9
from outside the state kratom products for sale; (ii) makes, 10
manufactures, fabricates, or stores kratom products in this state for 11
sale in this state; (iii) ships or transports kratom products to 12
retailers in this state, to be sold by those retailers; or (iv) 13
handles for sale any kratom products that are within this state but 14
upon which tax has not been imposed. 15
(b) The tax imposed under this section must be separately 16
itemized on the sales receipt provided to the buyer.17
(3) The moneys collected under this section must be deposited 18
into the youth harmful substance prevention account created in 19
section 3 of this act. 20
NEW SECTION. Sec. 3. (1) The youth harmful substance prevention 21
account is created in the state treasury. All receipts from the tax 22
on kratom products in section 2 of this act must be deposited in the 23
account. Moneys in the account may only be spent after appropriation.24
(2) Appropriations from the account may only be used to fund 25
programs and activities that prevent and reduce youth access to 26
harmful substances including, but not limited to, tobacco, vapor 27
products, cannabis, and kratom. 28
NEW SECTION. Sec. 4. It is the intent and purpose of this 29
chapter to levy a tax on all kratom products sold, used, consumed, 30
handled, possessed, or distributed within this state. It is the 31
further intent and purpose of this chapter to impose the tax only 32
once on all kratom products in this state. Nothing in this chapter 33
exempts any person taxable under any other law or under any other tax 34
imposed under this title.35
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NEW SECTION. Sec. 5. (1) The licenses issuable by the board 1
under this chapter are as follows:2
(a) A kratom distributor's license; and 3
(b) A kratom retailer's license. 4
(2) Application for the licenses must be made through the 5
business licensing system under chapter 19.02 RCW. The board may 6
adopt rules regarding the regulation of the licenses. The board may 7
refuse to issue any license under this chapter if the board has 8
reasonable cause to believe that the applicant has willfully withheld 9
information requested for the purpose of determining the eligibility 10
of the applicant to receive a license, or if the board has reasonable 11
cause to believe that information submitted in the application is 12
false or misleading or is not made in good faith. In addition, for 13
the purpose of reviewing an application for a distributor's license 14
or retailer's license and for considering the denial, suspension, or 15
revocation of any such license, the board may consider criminal 16
conduct of the applicant, including an administrative violation 17
history record with the board and a criminal history record 18
information check within the previous five years, in any state, 19
tribal, or federal jurisdiction in the United States, its 20
territories, or possessions, and the provisions of RCW 9.95.240 and 21
chapter 9.96A RCW do not apply to such cases. The board may, in its 22
discretion, issue or refuse to issue the distributor's license or 23
retailer's license, subject to section 20 of this act.24
(3) No person may qualify for a distributor's license or a 25
retailer's license under this section without first undergoing a 26
criminal background check. The background check must be performed by 27
the board and must disclose any criminal conduct within the previous 28
five years in any state, tribal, or federal jurisdiction in the 29
United States, its territories, or possessions. If the applicant or 30
licensee also has a license issued under chapter 66.24, 70.345, 31
82.24, or 82.26 RCW, the background check done under the authority of 32
chapter 66.24, 70.345, 82.24, or 82.26 RCW satisfies the requirements 33
of this section. 34
(4) Each license issued under this chapter expires on the 35
business license expiration date. The license must be continued 36
annually if the licensee has paid the required fee and complied with 37
all the provisions of this chapter and the rules of the board adopted 38
pursuant to this chapter. 39
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(5) Each license and any other evidence of the license required 1
under this chapter must be exhibited in each place of business for 2
which it is issued and in the manner required for the display of a 3
business license. 4
(6) The board may adopt rules regarding the regulation of the 5
licenses and licensees. 6
NEW SECTION. Sec. 6. (1)(a) No person may engage in or conduct 7
business as a distributor or retailer in this state without a valid 8
license issued under this chapter. Any person who sells kratom 9
products to ultimate consumers must obtain a retailer's license under 10
this chapter. Any person who meets the definition of distributor 11
under this chapter must obtain a distributor's license under this 12
chapter.13
(b) A violation of this subsection (1) is punishable as a class C 14
felony according to chapter 9A.20 RCW. 15
(2)(a) No person engaged in or conducting business as a 16
distributor or retailer in this state may: 17
(i) Refuse to allow the department or the board, on demand, to 18
make a full inspection of any place of business where any of the 19
kratom products taxed under this chapter are sold, stored, or 20
handled, or otherwise hinder or prevent such inspection;21
(ii) Make, use, or present or exhibit to the department or the 22
board any invoice for any of the kratom products taxed under this 23
chapter that bears an untrue date or falsely states the nature or 24
quantity of the goods invoiced; or 25
(iii) Fail to produce on demand of the department or the board 26
all invoices of all the kratom products taxed under this chapter 27
within five years prior to such demand unless the person can show by 28
satisfactory proof that the nonproduction of the invoices was due to 29
causes beyond the person's control. 30
(b) No person, other than a licensed distributor or retailer, may 31
transport kratom products for sale in this state for which the taxes 32
imposed under this chapter have not been paid unless:33
(i) Notice of the transportation has been given as required under 34
section 16 of this act; 35
(ii) The person transporting the kratom products actually 36
possesses invoices or delivery tickets showing the true name and 37
address of the consignor or seller, the true name and address of the 38
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consignee or purchaser, and the quantity and brands of kratom 1
products being transported; and 2
(iii) The kratom products are consigned to or purchased by a 3
person in this state who is licensed under this chapter.4
(c) A violation of this subsection (2) is a gross misdemeanor.5
(3)(a) Any person licensed under this chapter as a distributor, 6
and any person licensed under this chapter as a retailer, may not 7
operate in any other capacity unless the additional appropriate 8
license is first secured. 9
(b) A violation of this subsection (3) is a misdemeanor.10
(4) The penalties provided in this section are in addition to any 11
other penalties provided by law for violating the provisions of this 12
chapter or the rules adopted under this chapter. 13
NEW SECTION. Sec. 7. A fee of $150 must accompany each kratom 14
product distributor's license application or license renewal 15
application. If a distributor sells or intends to sell kratom 16
products at two or more places of business, whether established or 17
temporary, a separate license with a license fee of $100 is required 18
for each additional place of business.19
NEW SECTION. Sec. 8. A fee of $175 must accompany each kratom 20
product retailer's license application or license renewal 21
application. A separate license is required for each separate 22
location at which the retailer operates.23
NEW SECTION. Sec. 9. A manufacturer or distributor that sells, 24
offers for sale, or distributes kratom products must label the kratom 25
product with: (1) Information clearly identifying the product as a 26
kratom product; (2) a list of all ingredients used in the 27
manufacturing of the kratom product; and (3) the amount of 28
mitragynine and 7-hydroxymitragynine contained in the kratom product.29
NEW SECTION. Sec. 10. (1) Every distributor must keep at each 30
place of business complete and accurate records for that place of 31
business, including itemized invoices, of kratom products held, 32
purchased, manufactured, brought in or caused to be brought in from 33
outside the state, or shipped or transported to retailers in this 34
state, and of all sales of kratom products made.35
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(2) These records must show the names and addresses of 1
purchasers, the inventory of all kratom products, and other pertinent 2
papers and documents relating to the purchase, sale, or disposition 3
of kratom products. All invoices and other records required by this 4
section to be kept must be preserved for a period of five years from 5
the date of the invoices or other documents or the date of the 6
entries appearing in the records. 7
(3) At any time during usual business hours the department, 8
board, or its duly authorized agents or employees may enter any place 9
of business of a distributor, without a search warrant, and inspect 10
the premises, the records required to be kept under this chapter, and 11
the kratom products contained therein, to determine whether or not 12
all the provisions of this chapter are being fully complied with. If 13
the department, board, or any of its agents or employees are denied 14
free access or are hindered or interfered with in making such 15
examination, the registration certificate issued under RCW 82.32.030 16
of the distributor at such premises are subject to revocation by the 17
department, and any licenses issued under this chapter or chapter 18
82.24, 82.26, or 70.345 RCW are subject to suspension or revocation 19
by the board. 20
NEW SECTION. Sec. 11. (1) Every retailer must procure itemized 21
invoices of all kratom products purchased. The invoices must show the 22
seller's name and address, the date of purchase, and all prices and 23
discounts.24
(2) The retailer must keep at each retail outlet copies of 25
complete, accurate, and legible invoices for that retail outlet or 26
place of business. All invoices required to be kept under this 27
section must be preserved for five years from the date of purchase.28
(3) At any time during usual business hours the department, 29
board, or its duly authorized agents or employees may enter any 30
retail outlet without a search warrant, and inspect the premises for 31
invoices required to be kept under this section and the kratom 32
products contained in the retail outlet, to determine whether or not 33
all the provisions of this chapter are being fully complied with. If 34
the department, board, or any of its agents or employees are denied 35
free access or are hindered or interfered with in making the 36
inspection, the registration certificate issued under RCW 82.32.030 37
of the retailer at the premises is subject to revocation, and any 38
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licenses issued under this chapter or chapter 82.24, 82.26, or 70.345 1
RCW are subject to suspension or revocation by the department.2
NEW SECTION. Sec. 12. Every person required to be licensed 3
under this chapter who sells kratom products to persons other than 4
the ultimate consumer must render with each sale itemized invoices 5
showing the seller's name and address, the purchaser's name and 6
address, the date of sale, and all prices. The person must preserve 7
legible copies of all such invoices for five years from the date of 8
sale.9
NEW SECTION. Sec. 13. All of the provisions contained in 10
chapter 82.32 RCW not inconsistent with the provisions of this 11
chapter have full force and application with respect to taxes imposed 12
under the provisions of this chapter.13
NEW SECTION. Sec. 14. The department must authorize, as duly 14
authorized agents, enforcement officers of the board to enforce 15
provisions of this chapter. These officers are not employees of the 16
department.17
NEW SECTION. Sec. 15. (1) The department may by rule establish 18
the invoice detail required under section 10 of this act for a 19
distributor and for those invoices required to be provided to 20
retailers under section 11 of this act.21
(2) If a retailer fails to keep invoices as required under 22
section 10 of this act, the retailer is liable for the tax owed on 23
any uninvoiced kratom products but not penalties and interest, except 24
as provided in subsection (3) of this section. 25
(3) If the department finds that the nonpayment of tax by the 26
retailer was willful or if in the case of a second or plural 27
nonpayment of tax by the retailer, penalties and interest must be 28
assessed in accordance with chapter 82.32 RCW. 29
NEW SECTION. Sec. 16. (1) No person other than (a) a licensed 30
distributor in the distributor's own vehicle, a manufacturer's 31
representative authorized to sell or distribute kratom products in 32
this state under section 19 of this act, or a licensed retailer in 33
the retailer's own vehicle, or (b) a person who has given notice to 34
the board in advance of the commencement of transportation may 35
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transport or cause to be transported in this state kratom products 1
for sale. 2
(2) When transporting kratom products for sale, the person must 3
have in the person's actual possession, or cause to have in the 4
actual possession of those persons transporting such kratom products 5
on his or her behalf, invoices or delivery tickets for the kratom 6
products, which must show the true name and address of the consignor 7
or seller, the true name and address of the consignee or purchaser, 8
and the quantity and brands of the tobacco products being 9
transported. 10
(3) In any case where the department or the board, or any peace 11
officer of the state, has knowledge or reasonable grounds to believe 12
that any vehicle is transporting kratom products in violation of this 13
section, the department, the board, or peace officer, may stop the 14
vehicle and inspect it for contraband kratom products.15
NEW SECTION. Sec. 17. No person engaged in or conducting 16
business as a distributor or retailer in this state may:17
(1) Make, use, or present or exhibit to the department any 18
invoice for any of the kratom products taxed under this chapter that 19
bears an untrue date or falsely states the nature or quantity of the 20
goods invoiced; or 21
(2) Fail to produce on demand of the department all invoices of 22
all the kratom products taxed under this chapter within five years 23
prior to such demand unless the person can show by satisfactory proof 24
that the nonproduction of the invoices was due to causes beyond the 25
person's control. 26
NEW SECTION. Sec. 18. (1) A retailer that obtains kratom 27
products from an unlicensed distributor or any other person that is 28
not licensed under this chapter must be licensed both as a retailer 29
and a distributor under this chapter and is liable for the tax 30
imposed under section 2 of this act with respect to the kratom 31
products acquired from the unlicensed person that are held for sale, 32
handling, or distribution in this state. For the purposes of this 33
subsection, "person" includes both persons defined in section 1 of 34
this act and any person immune from state taxation, such as the 35
United States or its instrumentalities, and federally recognized 36
Indian tribes and enrolled tribal members, conducting business within 37
Indian country.38
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(2) Every distributor licensed under this chapter must sell 1
kratom products to retailers located in Washington only if the 2
retailer has a current retailer's license under this chapter.3
NEW SECTION. Sec. 19. A manufacturer that has manufacturer's 4
representatives who sell or distribute the manufacturer's kratom 5
products in this state must provide the board a list of the names and 6
addresses of all such representatives and must ensure that the list 7
provided to the board is kept current. A manufacturer's 8
representative may not distribute or sell kratom products in this 9
state unless the manufacturer that hired the representative has a 10
valid distributor's license issued under this chapter and that 11
manufacturer provides the board a current list of all of its 12
manufacturer's representatives as required by this section. A 13
manufacturer's representative must carry a copy of the distributor's 14
license of the manufacturer that hired the representative at all 15
times when selling or distributing the manufacturer's kratom 16
products.17
NEW SECTION. Sec. 20. (1) The board must enforce this chapter. 18
The board may adopt, amend, and repeal rules necessary to enforce 19
this chapter.20
(2) The department may adopt, amend, and repeal rules necessary 21
to administer this chapter. The board may revoke or suspend the 22
distributor's or retailer's license of any distributor or retailer of 23
kratom products in the state upon sufficient cause showing a 24
violation of this chapter or upon the failure of the licensee to 25
comply with any of the rules adopted under it. 26
(3) A license may not be suspended or revoked except upon notice 27
to the licensee and after a hearing as prescribed by the board. The 28
board, upon finding that the licensee has failed to comply with any 29
provision of this chapter or of any rule adopted under it, must, in 30
the case of the first offense, suspend the license or licenses of the 31
licensee for a period of not less than 30 consecutive business days, 32
and in the case of a second or further offense, suspend the license 33
or licenses for a period of not less than 90 consecutive business 34
days but not more than 12 months, and in the event the board finds 35
the licensee has been guilty of willful and persistent violations, it 36
may revoke the license or licenses. 37
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(4) Any person whose license or licenses have been revoked under 1
this section may reapply to the board at the expiration of one year 2
of the license or licenses. The license or licenses may be approved 3
by the board if it appears to the satisfaction of the board that the 4
licensee will comply with the provisions of this chapter and the 5
rules adopted under it. 6
(5) Any determination and order by the board, and any order of 7
suspension or revocation by the board of the license or licenses 8
issued under this chapter, or refusal to reinstate a license or 9
licenses after revocation is reviewable by an appeal to the superior 10
court of Thurston county. The superior court must review the order or 11
ruling of the board and may hear the matter de novo, having due 12
regard to the provisions of this chapter and the duties imposed upon 13
the board. 14
(6) If the board makes an initial decision to deny a license or 15
renewal, or suspend or revoke a license, the applicant may request a 16
hearing subject to the applicable provisions under Title 34 RCW.17
NEW SECTION. Sec. 21. (1) Any kratom products in the possession 18
of a person selling kratom products in this state acting as a 19
distributor or retailer and who is not licensed as required under 20
this chapter may be seized without a warrant by any agent of the 21
department, agent of the board, or law enforcement officer of this 22
state. Any kratom products seized under this subsection are deemed 23
forfeited.24
(2) Any kratom products in the possession of a person who is not 25
a licensed distributor, manufacturer's representative, or retailer 26
and who transports kratom products for sale without having provided 27
notice to the board required under section 16 of this act, or without 28
invoices or delivery tickets showing the true name and address of the 29
consignor or seller, the true name and address of the consignee or 30
purchaser, and the quantity and brands of kratom products being 31
transported may be seized and are subject to forfeiture.32
(3) All conveyances, including aircraft, vehicles, or vessels 33
that are used, or intended for use to transport, or in any manner to 34
facilitate the transportation, for the purpose of sale or receipt of 35
kratom products under subsection (2) of this section, may be seized 36
and are subject to forfeiture except: 37
(a) A conveyance used by any person as a common or contract 38
carrier having in actual possession invoices or delivery tickets 39
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showing the true name and address of the consignor or seller, the 1
true name of the consignee or purchaser, and the quantity and brands 2
of the kratom products transported, unless it appears that the owner 3
or other person in charge of the conveyance is a consenting party or 4
privy to a violation of this chapter; 5
(b) A conveyance subject to forfeiture under this section by 6
reason of any act or omission of which the owner establishes to have 7
been committed or omitted without the owner's knowledge or consent; 8
or 9
(c) A conveyance encumbered by a bona fide security interest if 10
the secured party neither had knowledge of nor consented to the act 11
or omission. 12
(4) Property subject to forfeiture under subsections (2) and (3) 13
of this section may be seized by any agent of the department, the 14
board, or law enforcement officer of this state upon process issued 15
by any superior court or district court having jurisdiction over the 16
property. Seizure without process may be made if: 17
(a) The seizure is incident to an arrest or a search warrant or 18
an inspection under an administrative inspection warrant; or19
(b) The department, board, or law enforcement officer has 20
probable cause to believe that the property was used or is intended 21
to be used in violation of this chapter and exigent circumstances 22
exist making procurement of a search warrant impracticable.23
(5) This section does not require the seizure of kratom products 24
if the department's agent, board's agent, or law enforcement officer 25
reasonably believes that the kratom products are possessed for 26
personal consumption by the person in possession of the kratom 27
products. 28
(6) Any kratom products seized by a law enforcement officer must 29
be turned over to the board as soon as practicable.30
(7) This section does not apply to a motor carrier or freight 31
forwarder as defined in 49 U.S.C. Sec. 13102 or an air carrier as 32
defined in 49 U.S.C. Sec. 40102. 33
NEW SECTION. Sec. 22. (1) In all cases of seizure of any kratom 34
products made subject to forfeiture under this chapter, the 35
department or board must proceed as provided in RCW 82.24.135.36
(2) When kratom products are forfeited under this chapter, the 37
department or board may: 38
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(a) Retain the property for official use or upon application by 1
any law enforcement agency of this state, another state, or the 2
District of Columbia, or of the United States for the exclusive use 3
of enforcing this chapter or the laws of any other state or the 4
District of Columbia or of the United States; or 5
(b) Sell the kratom products at public auction to the highest 6
bidder after due advertisement. Before delivering any of the goods to 7
the successful bidder, the department or board must require the 8
purchaser to pay the proper amount of any tax due. The proceeds of 9
the sale must be first applied to the payment of all proper expenses 10
of any investigation leading to the seizure and of the proceedings 11
for forfeiture and sale, including expenses of seizure, maintenance 12
of custody, advertising, and court costs. The balance of the proceeds 13
and all money must be deposited in the general fund of the state. 14
Proper expenses of investigation include costs incurred by any law 15
enforcement agency or any federal, state, or local agency.16
(3) The department or the board may return any property seized 17
under the provisions of this chapter when it is shown that there was 18
no intention to violate the provisions of this chapter. When any 19
property is returned under this section, the department or the board 20
may return the property to the parties from whom they were seized if 21
and when such parties have paid the proper amount of tax due under 22
this chapter. 23
NEW SECTION. Sec. 23. When the department or the board has good 24
reason to believe that any of the kratom products taxed under this 25
chapter are being kept, sold, offered for sale, or given away in 26
violation of the provisions of this chapter, it may make affidavit of 27
facts describing the place or thing to be searched, before any judge 28
of any court in this state, and the judge must issue a search warrant 29
directed to the sheriff, any deputy, police officer, or duly 30
authorized agent of the department or the board commanding him or her 31
diligently to search any building, room in a building, place, or 32
vehicle as may be designated in the affidavit and search warrant, and 33
to seize the kratom products and hold them until disposed of by law.34
NEW SECTION. Sec. 24. (1) Where kratom products upon which the 35
tax imposed by this chapter has been reported and paid are shipped or 36
transported outside this state by the distributor to a person engaged 37
in the business of selling kratom products, to be sold by that 38
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person, or are returned to the manufacturer by the distributor or 1
destroyed by the distributor, or are sold by the distributor to the 2
United States or any of its agencies or instrumentalities, or are 3
sold by the distributor to any Indian tribal organization, credit of 4
such tax may be made to the distributor in accordance with rules 5
prescribed by the department. 6
(2) Credit allowed under this section must be determined based on 7
the tax rate in effect for the period for which the tax imposed by 8
this chapter, for which a credit is sought, was paid.9
(3) For purposes of this section, the following definitions 10
apply: 11
(a) "Indian distributor" means a federally recognized Indian 12
tribe or tribal entity that would otherwise meet the definition of 13
distributor in section 1 of this act, if federally recognized Indian 14
tribes and tribal entities were not excluded from the definition of 15
person in section 1 of this act. 16
(b) "Indian retailer" means a federally recognized Indian tribe 17
or tribal entity that would otherwise meet the definition of retailer 18
in section 1 of this act, if federally recognized Indian tribes and 19
tribal entities were not excluded from the definition of person in 20
section 1 of this act. 21
(c) "Indian tribal organization" means a federally recognized 22
Indian tribe, or tribal entity, and includes an Indian distributor or 23
retailer that is owned by an Indian who is an enrolled tribal member 24
conducting business under tribal license or similar tribal approval 25
within Indian country. 26
NEW SECTION. Sec. 25. (1) Preexisting inventories of kratom 27
products are subject to the tax imposed under this chapter. Any 28
additional tax liability arising from the tax in section 2 of this 29
act must be paid, along with reports and returns as determined by the 30
department, on or before February 25, 2027.31
(2) The department must notify the taxpayer of the amount of tax 32
due under this chapter on preexisting inventories, which is subject 33
to applicable penalties under RCW 82.32.090 (2) through (7) if not 34
paid by the due date. Interest must be calculated at the rate as 35
computed under RCW 82.32.050(2) from the date the tax became due 36
until the date of payment. 37
(3) If upon examination of any returns or from other information 38
obtained by the department it appears that a tax or penalty has been 39
p. 15 SB 6196
paid less than that properly due, the department must assess against 1
the taxpayer such additional amount found to be due. The department 2
must notify the taxpayer of the additional amount due, including any 3
applicable penalties and interest. The taxpayer must pay the 4
additional amount within 30 days from the date of the notice, or 5
within such further time as the department may provide.6
(4) Taxes may not be collected under this chapter from consumers 7
with respect to any kratom products acquired before January 1, 2027.8
(5) For purposes of this section, "preexisting inventory" means 9
an inventory of kratom products located in this state as of the 10
moment that this act takes effect and held by a distributor for sale, 11
handling, or distribution in this state. 12
NEW SECTION. Sec. 26. If any provision of this act or its 13
application to any person or circumstance is held invalid, the 14
remainder of the act or the application of the provision to other 15
persons or circumstances is not affected.16
NEW SECTION. Sec. 27. Sections 1 through 25 and 28 of this act 17
constitute a new chapter in Title 82 RCW.18
NEW SECTION. Sec. 28. This act takes effect January 1, 2027.19
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