LOUISVILLE, Ky. — Several new laws went into effect Thursday, changing how THC beverages are sold, tightening vape shop regulations, and lowering income taxes.
Senate Bill 100
SB 100 allows Kentucky’s Alcoholic Beverage Control agency to conduct unannounced inspections of smoke shops to ensure they sell only FDA-approved vape products and do not sell to anyone under 21. The law also increases penalties and fines for noncompliant businesses. Provisional licenses were available for applicants before Jan. 1, but not afterward.
Senate Bill 202
THC-infused drinks are now banned at fairs, festivals, bars, and restaurants. Sales are limited to licensed liquor stores, with a cap of 5 milligrams of THC per container. Liquor stores must obtain an additional license to sell these beverages. The law follows a federal rider banning hemp, which will take effect in a year.
House Bill 1
Starting Jan. 1, 2026, Kentucky’s individual income tax drops from 4 percent to 3.5 percent. Republican lawmakers aim to eventually reduce it to zero to attract businesses, though Gov. Andy Beshear has noted the cut contributes to the state’s 2026 budget deficit due to lost revenue and rising costs.
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