An Act to Change How Adult Use Cannabis Excise Tax Is Calculated
Maine Legislature, Session 131, LD 1405
Committee Amendment CA_A_SA_A_S682 (Senate)
Amends: 28-B MRSA §1101

SENATE AMENDMENT" t)" to COMMITTEE AMENDMENT "A" to H.P. 901, 
L.D. 1405, "An Act to Change How Adult Use Cannabis Excise Tax Is Calculated" 
Amend the amendment by inserting before section 1 the following: 
'Sec. 1. 28-B MRSA §1101, sub-§2, 1C-1 is enacted to read: 
C-1. Beginning Janua1y 1, 2027, of the revenue deposited pursuant to subsection 1, 
paragraph A, up to 50% must be deposited in the General Fund to offset the difference 
in revenue from: 
(1) Changing the excise tax imposed pursuant to Title 36, section 4923, subsection 
from $33 5 per pound or fraction thereof of cannabis flower sold by a cultivation 
facility licensee to other licensees in the State to 10% of the average wholesale 
price of cannabis flower sold to a products manufacturing facility or a cannabis 
store; and 
(2) Changing the excise tax imposed pursuant to Title 36, section 4923, subsection 
from $94 per pound or fraction thereof of cannabis trim sold by a cultivation 
facility licensee to other licensees in the State to 10% of the average wholesale 
price of cannabis trim sold to a products manufacturing facility or a caimabis store. 
The State Tax Assessor shall determine monthly the difference in revenue pursuant to 
subparagraphs (1) and (2) and notify the State Controller of the amount to be 
transferred to the General Fund from the fund.' 
Amend the amendment in section 3 in subsection 1 in the 4th line (page 1, line 27 in 
amendment) by striking out the following: 
11.$.Ll_Q" and inse1iing the following: '.$1..TI' 
Amend the amendment in section 4 in subsection 2 in the 4th line (page 2, line 4 in 
amendment) by striking out the following: 
11$20
and inse1iing the following: '$35' 
Amend the amendment by relettering or renumbering any nonconsecutive Pati letter or 
section number to read consecutively. 
SUMMARY 
This amendment changes the amounts of the excise tax proposed in Committee 
Amendment "A" on cannabis flower from $150 per pound to $175 per pound and on 
cannabis trim from $20 per pound to $35 per pound, beginning January 1, 2025 and until 
Page I - 131LR1636(06) 
SENA TE AMENDMENT 
SENATE AMENDMENT" A 
"to COMMITTEE AMENDMENT "A" to H.P. 901, L.D. 140s($r & 8'7) 
January 1, 2027, at which time the tax will be 10% of the average wholesale price. To 
offset the loss of revenue from the change to a 10% tax rate from the cutTent tax of $33 5 
per pound of cannabis flower and $94 per pound of cannabis trim, this amendment, 
beginning Januaty 1, 2027, requires up to 50% of the amount of revenue credited to the 
Adult Use Cannabis Public Health and Safety and Municipal Opt-in Fund from the excise 
tax on adult cannabis and adult cannabis products to be deposited in the General Fund. The 
State Tax Assessor is required to determine 11101 hly the amount to be transferred and 
inform the State Controlle~r. 
.. 
.. 
. 
SPONSORED BY: 
---------"-,:c::r-~-------
( Sen a tor me~~-) 
COUNTY: Kennebec 
FISCAL NOTE REQUIRED 
(See attached) 
SENATE AMENDMENT 
Net C,ost (Savings) 
General Fund 
.tlevenue 
General Fund 
Approved: 04/09/24 ;?;pa,:!. 
LD 1405 
LR 1636(06) 
An Act to Change How Adult Use Cannabis Excise Tax Is Calculated 
Fiscal Note for Senate Amendment "It' to Committee Amendment "A" { $· let;f) 
Sponsor: Sen. Hickman of Kennebec 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2023-24 
FY 2024-25 
$0 
($588,000) 
Projections 
FY 2025-26 
($1,500,000) 
Projections 
FY 2026-27 
($1,194,000) 
Other Special Revenue Funds 
$0 
$0 
$588,000 
$56,000 
$1,500,000 
$195,000 
$1,194,000 
($123,000) 
Fiscal Detail and Notes 
This amendment changes the amount of the excise tax on cannabis flower from $150 per pound in the co1mnittee 
amendment to $17 5 per pound and the amount of the excise tax on cannabis trim from $20 per pound in the 
c01mnittee amendment to $35 per pound, beginning Janua1y 1, 2025 and until January 1, 2027. The incremental 
impact is to reduce the revenue loss to the General Fund from the c01mnittee amendment by $588,000 in fiscal year 
2024-25 and to reduce the revenue loss to the Adult Use Cannabis Public Health and Safety and Municipal Opt-in 
Fund by $56,000 in fiscal year 2024-25. 
The amendment also requires up to 50% of the amount of revenue credited to the Adult Use Cannabis Public Health 
and Safety and Municipal Opt-in Fund from the excise tax on adult cannabis and adult cannabis products to be 
deposited in the General Fund beginning January 1, 2027 to offset the difference in revenue from an excise tax of 
$335 per pound of flower and $94 per pound of trim to an excise tax rate of 10% of average wholesale price of 
cannabis flower and cannabis trim beginning January 1, 2027. 
LR1636(06) - Fiscal Note - Page 1 of 1