An Act To Allow Municipalities To Apply a Local Option Sales Tax to the Sale of Marijuana
Maine Legislature, Session 128, LD 0433
Committee: Taxation
Sponsors: RYKERSON, TUELL, CHIPMAN, CHENETTE, ALLEY, BATTLE, HANDY, SPEAR, TIPPING, WADSWORTH, DION
Amends: 36 MRSA §1818

Legislative Document
No. 433
H.P. 313
House of Representatives, February 7, 2017
An Act To Allow Municipalities To Apply a Local Option Sales Tax 
to the Sale of Marijuana
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative RYKERSON of Kittery.
Cosponsored by Representative TUELL of East Machias, Senator CHIPMAN of Cumberland, 
Senator CHENETTE of York and Representatives: ALLEY of Beals, BATTLE of South 
Portland, HANDY of Lewiston, McCREIGHT of Harpswell, SPEAR of South Thomaston, 
TIPPING of Orono, WADSWORTH of Hiram, Senator: DION of Cumberland.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §1818 is enacted to read: 
§1818.  Municipal local option sales tax on marijuana 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Participating municipality" means a municipality that has imposed a local option 
sales tax pursuant to this section. 
2.  Authorization to impose local option sales tax on marijuana.  Notwithstanding 
section 1817, subsection 2, a municipality that approves the location of a retail marijuana 
store or a retail marijuana social club within the municipality under Title 7, section 2449 
may impose a local option sales tax on retail marijuana or retail marijuana products 
subject to tax under section 1817. 
3.  Notify State Tax Assessor.  A municipality that imposes a local option sales tax 
under subsection 2 shall notify the State Tax Assessor at least 90 days before the local 
option sales tax is effective. 
4.  Administration.  A retail marijuana store or a retail marijuana social club in a 
participating municipality shall transfer the revenue from the local option sales tax under 
this section at the time and in the manner provided in section 1951-A for the transfer of 
state sales tax revenue.  The tax is subject to the same enforcement provisions, interest, 
penalties and administrative actions as other taxes assessed under this Part. 
5.  Distribution of revenue.  Each month, the State Tax Assessor shall identify the 
amount of revenue attributable to each participating municipality under this section, 
subtract the costs of administering this section and certify to the Treasurer of State the net 
amount due each participating municipality. 
The Treasurer of State shall make monthly payments to the participating municipality of 
the net amount certified under this subsection. 
For purposes of this subsection, "costs of administering this section" means the lesser of 
the actual cost to the assessor of administering this section and 2% of the total revenue 
generated by local option sales taxes. 
SUMMARY 
This bill allows a municipality that approves the location of a retail marijuana store or 
a retail marijuana social club to impose a local option sales tax.  Revenue from the local 
option sales tax after deduction for the cost of state administration is distributed to the 
municipality.