Title 44
Taxation

CHAPTER 20.3
Kratom and Kratom Products Tax [Effective April 1, 2026.]

§ 44-20.3-1. Definitions. [Effective April 1, 2026.]

Whenever used in this chapter, unless the context requires otherwise:

(1) “Administrator” means the tax administrator.

(2) “Dealer” means a “retailer” as defined in this chapter.

(3) “Distributor” means any person:

(i) Whether located within or outside of this state, other than a retailer, who sells or distributes kratom or kratom products within or into this state; and

(ii) Engaged in this state in the business of manufacturing kratom products or any person engaged in the business of selling kratom or kratom products to retailers, or to other persons, for the purpose of resale only; provided that, seventy-five percent (75%) of all kratom or kratom products sold by that person in this state are sold to retailers or other persons for resale and selling kratom or kratom products directly to at least twenty (20) retailers or other persons for resale; or

(iii) Maintaining one or more regular places of business in this state for that purpose; provided that, seventy-five percent (75%) of the sold kratom or kratom products are purchased directly from the manufacturer and selling kratom or kratom products directly to at least twenty (20) retailers or other persons for resale.

(4) “Importer” means any person who imports into the United States, either directly or indirectly, kratom or a kratom product for sale or distribution.

(5) “Kratom” means any part of the leaf of the plant mitragyna speciosa.

(6) “Kratom product” means a product that contains any part or extract of the leaf of the plant mitragyna speciosa or an extract thereof including concentrated forms of kratom and products composed of kratom and other ingredients.

(7) “Licensed” when used with reference to a manufacturer, importer, distributor, or retailer, means only those persons who hold a valid and current license issued under § 44-20.3-2 for the type of business being engaged in. When the term “licensed” is used before a list of entities, such as “licensed manufacturer, importer, wholesale retailer, or retailer,” such term shall be deemed to apply to each entity in such list.

(8) “Manufacturer” means any person who manufactures, fabricates, assembles, processes, or labels a kratom product.

(9) “Person” means any individual, including an employee or agent, firm, fiduciary, partnership, corporation, trust, or association, however formed.

(10) “Place of business” means any location where kratom or kratom products are sold, stored, or kept including, but not limited to, any storage room, attic, basement, garage or other facility immediately adjacent to the location. It also includes any receptacle, hide, vessel, vehicle, airplane, or train.

(11) “Retailer” means any person whether located within or outside of this state, who sells or distributes kratom products to a consumer in this state.

(12) “Sale” or “sell” means gifts, exchanges, or barter of kratom or kratom products. The act of holding, storing, or keeping kratom or kratom products at a place of business for any purpose shall be presumed to be holding the kratom or kratom products for sale. Furthermore, any sale of kratom or kratom products by the servants, employees, or agents of the licensed retailer during business hours at the place of business shall be presumed to be a sale by the licensee.