An Act To Clarify Certain Provisions Regarding the Marijuana Excise Tax
Maine Legislature, Session 130, LD 0871
Committee: Taxation
Sponsors: PERRY
Amends: 36 MRSA §4921, 36 MRSA §4923, 36 MRSA §4923-A

Legislative Document
No. 871
H.P. 639
House of Representatives, March 8, 2021
An Act To Clarify Certain Provisions Regarding the Marijuana 
Excise Tax
(EMERGENCY)
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204.
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative PERRY of Bangor.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the Department of Administrative and Financial Services began in 
September 2020 to issue licenses to authorize the cultivation, manufacturing, testing and 
sale of adult use marijuana and adult use marijuana products; and
Whereas, licenses issued to cultivation facilities may authorize the transfer of, and 
payment of excise taxes on, the items included in this legislation; and
Whereas, the department has issued rules to clarify currently ambiguous portions of 
the excise tax laws clarified in this legislation; and
Whereas, predictability and simplicity in the enforcement of tax laws is critical to 
ensuring compliance with tax laws; and
Whereas, the changes to the adult use marijuana and tax laws proposed in this 
legislation are critical to sustainability and growth of a critical source of revenue in the 
midst of an ongoing economic crisis; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §4921, sub-§13 is enacted to read:
13.  Wet marijuana flower.  "Wet marijuana flower" means marijuana flower that is 
not dried, cured or otherwise prepared in any manner to reduce or eliminate any water 
weight.
Sec. 2.  36 MRSA §4921, sub-§14 is enacted to read:
14.  Wet marijuana trim.  "Wet marijuana trim" means marijuana trim that is not 
dried, cured or otherwise prepared in any manner to reduce or eliminate any water weight.
Sec. 3.  36 MRSA §4923, sub-§1, as enacted by PL 2019, c. 231, Pt. B, §7, is 
amended to read:
1.  Excise tax on marijuana flower and mature marijuana plants.   A cultivation 
facility licensee shall pay an excise tax of $335 per pound or fraction thereof of marijuana 
flower or mature marijuana plants sold to other licensees in the State.
Sec. 4.  36 MRSA §4923, sub-§3-A is enacted to read:
3-A.  Excise tax on mature marijuana plants.  Beginning July 1, 2021, a cultivation 
facility licensee shall pay an excise tax of $35 per mature marijuana plant sold to other 
licensees in the State.
Sec. 5.  36 MRSA §4923-A is enacted to read:
§4923-A.  Calculation of excise tax imposed on wet marijuana flower and wet 
marijuana trim
For purposes of the excise tax imposed pursuant to section 4923 on wet marijuana 
flower or wet marijuana trim, a cultivation facility licensee shall calculate the taxable 
weight by reducing the total weight of the wet marijuana flower or wet marijuana trim by 
75% before applying the excise tax.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill makes the following changes to the marijuana excise tax provisions.
1.  It adds definitions of "wet marijuana flower" and "wet marijuana trim."
2.  It removes the "per pound or fraction thereof" calculation of excise taxes for mature 
marijuana plants and, beginning July 1, 2021, provides an excise tax of $35 per mature 
marijuana plant.
3.  It requires a cultivation facility licensee to calculate the taxable weight by reducing 
the total weight of wet marijuana flower or wet marijuana trim by 75%, to account for the 
water in the flower or trim, before applying the excise tax.