An Act To Restructure the Taxation of Adult Use Marijuana
Maine Legislature, Session 130, LD 0830
Committee: Taxation
Sponsors: PERRY
Amends: 28-B MRSA §205, 28-B MRSA §501, 28-B MRSA §1101, 36 MRSA §1811, 36 MRSA §4401

Legislative Document
No. 830
H.P. 598
House of Representatives, March 8, 2021
An Act To Restructure the Taxation of Adult Use Marijuana
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative PERRY of Bangor.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  28-B MRSA §205, sub-§4, ¶A, as amended by PL 2019, c. 231, Pt. B, §1, 
is further amended by amending subparagraph (3) to read:
(3)  If the application is for a license to operate a cultivation facility, submit updated 
operating and cultivation plans as required under section 302 based upon the actual 
premises to be licensed, except that, if no changes to the original operating and 
cultivation plans submitted by the applicant are necessary based upon the actual 
premises to be licensed, then the applicant may satisfy this requirement by 
resubmitting the original operating and cultivation plans and noting on those plans 
that no changes are necessary; and
Sec. 2.  28-B MRSA §205, sub-§4, ¶A, as amended by PL 2019, c. 231, Pt. B, §1, 
is further amended by amending subparagraph (4) to read:
(4)  If the application is for any license except a license to operate a testing facility, 
register with the State Tax Assessor pursuant to Title 36, section 1754‑B to collect 
and remit the sales tax on the sale of adult use marijuana and adult use marijuana 
products imposed under Title 36, section 1811; and.
Sec. 3.  28-B MRSA §205, sub-§4, ¶A, as amended by PL 2019, c. 231, Pt. B, §1, 
is further amended by repealing subparagraph (5).
Sec. 4.  28-B MRSA §501, sub-§3, ¶C, as amended by PL 2019, c. 231, Pt. B, §2, 
is further amended to read:
C.  A nursery cultivation facility may sell and distribute to marijuana stores and other 
cultivation facilities only immature marijuana plants, seedlings and marijuana seeds.  
Adult use marijuana sold by a nursery cultivation facility to marijuana stores and other 
cultivation facilities is subject to the excise tax imposed pursuant to Title 36, chapter 
723, which must be paid to the State Tax Assessor as required by subsection 9.
Sec. 5.  28-B MRSA §501, sub-§6, ¶B, as amended by PL 2019, c. 231, Pt. B, §3, 
is further amended to read:
B.  A cultivation facility licensee authorized pursuant to paragraph A to purchase 
marijuana plants and marijuana seeds from registered caregivers and registered 
dispensaries that transacts such a purchase shall pay to the State Tax Assessor the 
excise taxes imposed pursuant to Title 36, chapter 723 on the sale of the marijuana 
plants and marijuana seeds.  In addition to payment of the required excise taxes under 
this paragraph, the cultivation facility licensee shall provide the department with an 
accounting of the transaction, which must include information on the registered 
caregiver or registered dispensary from which the licensee purchased the marijuana 
plants and marijuana seeds, the number of mature marijuana plants, immature 
marijuana plants, seedlings and marijuana seeds purchased in the transaction and any 
other information required by the department by rule.
Sec. 6.  28-B MRSA §501, sub-§9, as amended by PL 2019, c. 231, Pt. B, §4, is 
further amended to read:
9.  Excise tax; sales Sales tax.  A cultivation facility licensee shall ensure that the tax 
imposed on the sale of adult use marijuana pursuant to Title 36, chapter 723 is paid to the 
State Tax Assessor.  A nursery cultivation facility licensee shall ensure that the tax imposed 
on the sale of adult use marijuana and adult use marijuana products under Title 36, section 
1811 is collected and remitted in accordance with the requirements of Title 36, Part 3 and 
the rules adopted pursuant to Title 36, Part 3.
Sec. 7.  28-B MRSA §1101, sub-§1, ¶A, as amended by PL 2019, c. 231, Pt. B, 
§6, is repealed.
Sec. 8.  36 MRSA §1811, sub-§1, ¶D, as amended by PL 2019, c. 607, Pt. B, §5, 
is further amended to read:
D.  For sales occurring on or after October 1, 2019, the rate of tax is 5.5% on the value 
of all tangible personal property and taxable services, except the rate of tax is:
(1)  Eight percent on the value of prepared food;
(2)  Eight percent on the value of liquor sold in licensed establishments as defined 
in Title 28‑A, section 2, subsection 15, in accordance with Title 28‑A, chapter 43 
and liquor sold for on-premises consumption by a licensed brewery, small brewery, 
winery, small winery, distillery or small distillery pursuant to Title 28‑A, section 
1355‑A, subsection 2, paragraph F;
(3)  Nine percent on the value of rental of living quarters in any hotel, rooming 
house or tourist or trailer camp;
(4)  Ten percent on the value of rental for a period of less than one year of:
(a)  An automobile;
(b)  A pickup truck or van with a gross vehicle weight of less than 26,000 
pounds rented from a person primarily engaged in the business of renting 
automobiles; or
(c)  A loaner vehicle that is provided other than to a motor vehicle dealer's 
service customers pursuant to a manufacturer's or dealer's warranty; and
(5)  Ten percent Until January 1, 2022, 10% on the value of adult use marijuana, 
adult use marijuana products and, if sold by a person to an individual who is not a 
qualifying patient, marijuana and marijuana products beginning on the first day of 
the calendar month in which adult use marijuana and adult use marijuana products 
may be sold in the State by a marijuana establishment licensed to conduct retail 
sales pursuant to Title 28‑B, chapter 1.; and
(6)  Beginning January 1, 2022, 20% on the value of adult use marijuana, adult use 
marijuana products and, if sold by a person to an individual who is not a qualifying 
patient, marijuana and marijuana products.
Sec. 9.  36 MRSA §4401, sub-§9, ¶C, as amended by PL 2019, c. 607, Pt. B, §7, 
is further amended to read:
C.  Any product that contains adult use marijuana subject to tax under chapter 723; or
Sec. 10.  36 MRSA c. 723, as amended, is repealed.
Sec. 11.  Effective date.  This Act takes effect January 1, 2022 except that the section 
of this Act that amends the Maine Revised Statutes, Title 36, section 1811, subsection 1, 
paragraph D takes effect 90 days after the adjournment of the First Regular Session of the 
130th Legislature.
SUMMARY
This bill repeals the excise tax on adult use marijuana on January 1, 2022 and raises an 
estimated equivalent amount of revenue by increasing the sales tax on adult use marijuana 
and adult use marijuana products to 20% on January 1, 2022.