Washington State Proposes Draconian 95% Kratom Tax and Under-21 Ban: A Wake-Up Call for the Industry

Washington State Proposes Draconian 95% Kratom Tax and Under-21 Ban: A Wake-Up Call for the Industry

Washington State – January 28, 2026 – The kratom industry is facing an unprecedented challenge as Washington state lawmakers consider a bill that would impose a staggering 95% excise tax on kratom products, alongside a ban on sales to individuals under the age of 21. This proposed legislation, reported by spokesman.com, represents one of the most aggressive regulatory attempts to date and sends a clear message about the growing scrutiny facing the kratom market.

What Happened? A new bill introduced in Washington aims to drastically alter the landscape for kratom in the state. The most striking element is the proposed 95% excise tax, which would be levied on the sale of kratom. Coupled with this is a provision to prohibit the sale of kratom to anyone under the age of 21, mirroring age restrictions often seen with tobacco and alcohol.

Why It Matters to Kratom Merchants and Consumers For kratom merchants, the implications of a 95% tax are nothing short of catastrophic. Such a steep tax would effectively price legitimate kratom products out of the market, making it nearly impossible for businesses to operate profitably. The economic viability of every kratom vendor in Washington would be severely threatened, likely leading to widespread business closures and job losses. Consumers, in turn, would face astronomical prices, driving many to seek out unregulated and potentially unsafe products from the black market, undermining public health and safety efforts. The under-21 ban, while perhaps less impactful on the industry's financial bottom line than the tax, still adds a layer of operational complexity and limits market access for a segment of adult consumers.

Compliance Implications Should this bill pass, the compliance landscape for Washington-based kratom businesses would undergo a radical transformation. Merchants would be immediately responsible for implementing robust age verification systems, both online and in brick-and-mortar stores, to ensure compliance with the under-21 ban. More significantly, they would need to establish entirely new accounting and reporting procedures to accurately calculate, collect, and remit the 95% excise tax. This would involve meticulous record-keeping of all sales and potentially complex interactions with state tax authorities. Failure to comply with these new tax and age restrictions could result in severe penalties, including hefty fines, license revocations, and even criminal charges.

What High-Risk Merchants Need to Know About COAs, Lab Testing, and Regulatory Compliance This development underscores the critical importance of proactive and stringent compliance measures for all kratom merchants, particularly those operating in the high-risk payment processing category. Even if the current bill doesn't explicitly mandate product quality standards, the increased scrutiny and regulatory pressure demand an elevated commitment to transparency and safety.

1. Certificates of Analysis (COAs): Providing comprehensive, third-party Certificates of Analysis (COAs) for every batch of kratom is no longer just a best practice; it's a necessity for demonstrating product integrity. These COAs must clearly show testing for heavy metals, pathogens (like salmonella and E. coli), and adulterants, as well as accurate alkaloid content (mitragynine and 7-hydroxymitragynine).
2. Lab Testing: Regular, independent lab testing is your strongest defense against accusations of unsafe or mislabeled products. In an environment where the government is actively seeking to regulate or tax the industry out of existence, verifiable product safety data is paramount.
3. Regulatory Preparedness: Merchants must stay acutely aware of legislative developments in their operating states and at the federal level. This includes understanding potential new age restrictions, taxation schemes, and product quality regulations like the Kratom Consumer Protection Act (KCPA) where applicable. Implement internal controls and training to ensure staff are fully aware of and adhere to all current and impending regulations. For Washington state, this means immediately preparing for age verification system upgrades and understanding the potential tax burden.
4. Payment Processing: High-risk merchants already face challenges with payment processing. Heightened regulatory activity, especially punitive taxation, could lead to increased scrutiny from payment processors, potentially impacting merchant accounts. Maintaining impeccable compliance records and demonstrating a commitment to responsible business practices is crucial for maintaining these vital relationships.

The proposed Washington state bill serves as a stark reminder that the kratom industry remains under constant threat of restrictive legislation. Proactive compliance, unwavering commitment to product safety, and diligent advocacy are essential for safeguarding access to kratom for adult consumers.