An Act To Provide Municipalities a Percentage of the Revenue Generated from the Taxes Imposed on the Sale of Recreational Marijuana in Those Municipalities
Maine Legislature, Session 130, LD 0740
Committee: Taxation
Sponsors: O'CONNELL
Amends: 28-B MRSA §407, 36 MRSA §1818, 36 MRSA §4925

Legislative Document
No. 740
H.P. 545
House of Representatives, March 5, 2021
An Act To Provide Municipalities a Percentage of the Revenue 
Generated from the Taxes Imposed on the Sale of Recreational 
Marijuana in Those Municipalities
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative O'CONNELL of Brewer.
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.  To assist in offsetting 
negative effects on local resources of local regulation and enforcement of adult use 
marijuana laws, 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 Title 
36, section 1818, subsection 2 and Title 36, section 4925, subsection 2.
3.  Distribution of funds.  The Treasurer of State shall distribute the balance in the 
fund on the 20th day of each month. Money in the fund must be distributed to each 
municipality that has authorized, pursuant to sections 401 and 403, a marijuana 
establishment within the municipality, in proportion to the ratio of revenues generated 
pursuant to Title 36, sections 1811 and 4923 by all marijuana establishments operating 
within the municipality to the revenues generated pursuant to Title 36, sections 1811 and 
4923 by all marijuana establishments operating within the State.
4.  Unorganized and deorganized areas.  For purposes of municipal marijuana 
revenue distribution pursuant to this section, unorganized and deorganized areas must be 
treated as if they are municipalities.
Sec. 2.  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 D, §4, is repealed and 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, on or before the last day of each month, the State Controller shall transfer:
1.  Adult Use Marijuana Public Health and Safety Fund.  Twelve percent of the 
sales tax revenue reported to the State Tax Assessor as due during the preceding month 
pursuant to section 1811 to the Adult Use Marijuana Public Health and Safety Fund 
established under Title 28-B, section 1101; and
2.  Local Government Marijuana Revenue Fund.  Twenty-five percent of the sales 
tax revenue reported to the State Tax Assessor as due during the preceding month pursuant 
to section 1811 to the Local Government Marijuana Revenue Fund established under Title 
28-B, section 407 calculated after the transfer pursuant to subsection 1 and after the 
subtraction of the costs of the State Tax Assessor in administering this subsection.  For the 
purposes of this subsection, "costs of the State Tax Assessor in administering this 
subsection" means, for each month in the 12-month period after the effective date of this 
section, the actual and anticipated cost to the State Tax Assessor of administering this 
subsection and, in all subsequent months, the previous month's actual cost of administering 
this subsection.
Sec. 3.  36 MRSA §4925, as enacted by PL 2019, c. 231, Pt. B, §7, is repealed and 
the following enacted in its place:
§4925.  Application of excise tax revenue
All excise tax revenue collected by the assessor on the sale of adult use marijuana 
pursuant to this chapter must be deposited into the General Fund, except that, on or before 
the last day of each month, the assessor shall transfer:
1.  Adult Use Marijuana Public Health and Safety Fund.  Twelve percent of the 
excise tax revenue received during the preceding month pursuant to this chapter to the 
Adult Use Marijuana Public Health and Safety Fund established under Title 28-B, section 
1101; and
2.  Local Government Marijuana Revenue Fund.  Twenty-five percent of the excise 
tax revenue received during the preceding month into the Local Government Marijuana 
Revenue Fund established under Title 28-B, section 407 calculated after the transfer 
pursuant to subsection 1 and after the subtraction of the costs of the assessor in 
administering this subsection. For the purposes of this subsection, "costs of the assessor in 
administering this subsection" means, for each month in the 12-month period after the 
effective date of this section, the actual and anticipated cost to the assessor of administering 
this subsection and, in all subsequent months, the previous month's actual cost of 
administering this subsection.
SUMMARY
This bill requires the transfer of 25% of the revenue from the sales tax and the excise 
tax on adult use marijuana to a fund established by the bill to be distributed to municipalities 
where marijuana establishments are located in proportion to the ratio of the revenue 
generated in the municipality to the total revenue generated by adult use marijuana 
establishments statewide.