At present officials can only take action if they catch someone selling balloons in the street.
The new measures to bring in fines ranging from €750 (£647) to €1,500 (£1,374) will be voted on at a council meeting next Wednesday.
Brits are reported to be the main buyers of laughing gas, which is banned in the UK for human consumption, and are often seen buying it from beach sellers.
The drug has been linked to eight deaths in Britain in the last year.
Ibizan paper Diario de Ibiza dubbed the San Antonio seafront the “independent laughing gas republic” in a report written last month.
In the expose tourists revealed that they had also been offered ecstasy pills by laughing gas vendors.
A spokesperson for San Antonio Council said: “The government team in San Antonio will propose a modification to an existing by-law governing civil coexistence which will ban the consumption of nitrous oxide in public.
“Under the current rules, local police can only act against those people they catch selling the substance in the street.
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“Consumers cannot be punished because laughing gas is not considered to be an illegal substance or catalogued as a drug.”
Majorca previously cracked down on the substance with a series of new measures.
It includes a ban on streaking, balconing, bottle parties in the street and the sale of laughing gas.
Holidaymakers caught breaking the rules will face hefty fines of up to €3,000 (£2,700).
Councillor for security, Angelica Pastor said: "This ordinance will not solve all the problems but gives tools to the police to work on.
"We hope that it helps to improve coexistence in the main leisure areas."
Sun Online previously revealed that furious Ibiza and Majorca hotel owners are threatening to take the Balearic government to court if it bans free-flowing booze at all inclusive hotels.
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