An Act To Require the State To Distribute 25 Percent of Adult Use Marijuana Retail Sales and Excise Tax Revenue to Generating Municipalities
Maine Legislature, Session 129, LD 0335
Committee: Veterans and Legal Affairs
Sponsors: WARREN, DESCHAMBAULT, FAY, FOLEY, JOHANSEN, PICKETT, DAVIS
Amends: 28-B MRSA §407, 28-B MRSA §1003, 36 MRSA §1818

Legislative Document
No. 335
H.P. 260
House of Representatives, January 24, 2019
An Act To Require the State To Distribute 25 Percent of Adult Use 
Marijuana Retail Sales and Excise Tax Revenue to Generating 
Municipalities
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative WARREN of Hallowell.
Cosponsored by Senator DESCHAMBAULT of York and
Representatives: FAY of Raymond, FOLEY of Biddeford, JOHANSEN of Monticello, 
PICKETT of Dixfield, Senator: DAVIS of Piscataquis.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  28-B MRSA §407 is enacted to read:
§407.  Revenue allocation to municipalities
1.  Local Government Marijuana Revenue Fund established.  In recognition of 
the local costs of regulation and enforcement with respect to the activities associated with 
the legalization of adult use marijuana under this chapter and to assist in offsetting 
negative effects on local resources, there is established the Local Government Marijuana 
Revenue Fund, referred to in this section as "the fund."
2.  Fund sources.  The fund receives money transferred to the fund pursuant to 
section 1003, subsection 1 and Title 36, section 1818, subsection 1.
3.  Distribution of funds.  The Treasurer of State shall transfer the balance in the 
fund on the 20th day of each month.  Money in the fund must be distributed to each 
municipality in which the legislative body has voted to adopt a new ordinance, amend an 
existing ordinance or approve a warrant article allowing a marijuana establishment within 
the municipality, in proportion to the ratio of state revenues generated by all marijuana 
establishments operating within the municipality to the state revenues generated by all 
marijuana establishments operating within the State.
4.  Unorganized and deorganized areas.  For purposes of municipal marijuana 
revenue allocation pursuant to this section, unorganized and deorganized areas must be 
treated as if they are municipalities.
Sec. 2.  28-B MRSA §1003, as enacted by PL 2017, c. 409, Pt. A, §6, is repealed 
and the following enacted in its place:
§1003.  Application of excise tax revenue
All excise tax revenue collected by the department pursuant to this subchapter on the 
sale of adult use marijuana must be deposited into the General Fund, except that:
1.  Transfer to Local Government Marijuana Revenue Fund.  On or before the 
10th day of each month, the department shall transfer to the Local Government Marijuana 
Revenue Fund established under section 407 without any reduction 25% of the excise tax 
revenue received by the department during the preceding month pursuant to this 
subchapter; and
2.  Transfer to Adult Use Marijuana Public Health and Safety Fund.  On or 
before the last day of each month, the department shall transfer to the Adult Use 
Marijuana Public Health and Safety Fund established under section 1101 12% of the 
difference between the excise tax revenue received by the department during the 
preceding month pursuant to this subchapter and the transfer made pursuant to subsection 
1.
Sec. 3.  36 MRSA §1818, as enacted by PL 2017, c. 409, Pt. D, §4, is repealed and 
the following enacted in its place:
§1818.  Tax on adult use marijuana and adult use marijuana products
All sales tax revenue collected pursuant to section 1811 on the sale of adult use 
marijuana and adult use marijuana products must be deposited into the General Fund, 
except that:
1.  Transfer to Local Government Marijuana Revenue Fund.  On or before the 
10th day of each month, the State Controller shall transfer to the Local Government 
Marijuana Revenue Fund established under Title 28-B, section 407 without any reduction 
25% of the sales tax revenue received by the assessor during the preceding month 
pursuant to section 1811; and 
2.  Transfer to Adult Use Marijuana Public Health and Safety Fund.  On or 
before the last day of each month, the State Controller shall transfer to the Adult Use 
Marijuana Public Health and Safety Fund established under Title 28-B, section 1101 12% 
of the difference between the sales tax revenue received by the assessor during the 
preceding month pursuant to section 1811 and the transfer made pursuant to subsection 1.
SUMMARY
This bill allocates 25% of the gross sales and excise tax revenue generated by adult 
use marijuana establishments in the State to the municipalities where the revenue was 
generated and makes a reduction to the amount deposited in the Adult Use Marijuana 
Public Health and Safety Fund.