An Act To Increase Funding to Qualifying Municipalities by Sharing Adult Use Marijuana Sales and Excise Tax Revenue
Maine Legislature, Session 130, LD 1195
Committee: Taxation
Sponsors: ROBERTS, HICKMAN, JOHANSEN, MEYER, WARREN
Amends: 28-B MRSA §407, 36 MRSA §1818, 36 MRSA §4925

Legislative Document
No. 1195
H.P. 873
House of Representatives, March 22, 2021
An Act To Increase Funding to Qualifying Municipalities by 
Sharing Adult Use Marijuana Sales and Excise Tax Revenue
Received by the Clerk of the House on March 18, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative ROBERTS of South Berwick.
Cosponsored by Senator HICKMAN of Kennebec and
Representatives: JOHANSEN of Monticello, MEYER of Eliot, WARREN of Hallowell.
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 Title 
36, section 1818, subsection 1 and Title 36, section 4925.
3.  Distribution of funds.  The Treasurer of State shall transfer the balance in the fund, 
less the actual costs of administering 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.  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 D, §4, is repealed and 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 5% 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.
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 pursuant to this chapter 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 State Controller shall transfer to the Local Government Marijuana 
Revenue Fund established under Title 28-B, section 407 5% of the excise tax revenue 
received by the assessor 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 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 excise tax revenue received by the assessor during the preceding 
month pursuant to this subchapter and the transfer made pursuant to subsection 1.
SUMMARY
This bill allocates 5% 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.