An Act to Promote Fairness m the Taxation of Adult U sefc!annabis by Basmg the Excise Tax on the Tier of a Cultivation Facility
Maine Legislature, Session 131, LD 1384
Committee Amendment CA_A_S402 (Senate)
Amends: 36 MRSA §4923, 36 MRSA §4924, 36 MRSA §4925

COMMITTEE AMENDMENT"" "to SP 549, L D 1384, "An Act to Promote 
Fairness m the Taxation of Adult U sefc!annabis by Basmg the Excise Tax on the Tier of a 
Cultivation Facility" 
Amend the bill by stnkmg out the title and substitutmg the followmg 
'An Act to Promote Fairness m the Taxation of Adult Use Cannabis' 
Amend the bill by msertmg after the title and before the enactmg clause the followmg 
'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 current structure for the taxation of adult use cannabis 1s resultmg m 
overtaxation of some producers and needs to be adjusted as soon as possible m order to 
prevent some busmesses from ceasmg busmess due to tax costs, and 
Whereas, m the Judgment of the Legislature, these facts create an emergency w1thm 
the meanmg of the Constitution of Mame and reqmre the followmg legislat10n as 
immediately necessary for the preservat10n of the pub he peace, health and safety, now, 
therefore,' 
Amend the bill by stnkmg out everythmg after the enactmg clause and msertmg the 
followmg 
'Sec. 1. 36 MRSA §4923, sub-§7 1s enacted to read 
7. Sales and transfers between licensed cultivation fac1hbes 
No excise tax 1s 
imposed on a sale of adult use cannabis to a cult1vat1on fac1hty or on a transfer of adult use 
cannabis to a cult1vat10n fac1hty 
Sec. 2. 36 MRSA §4924, as enacted by PL 2019, c 231, Pt B, §7, 1s amended to 
read 
§4924. Returns; payment of excise tax 
COMMITTEE AMENDMENT 
ROS 
COMMITTEE AMENDMENT "A" to SP 549, L D 1384 
Gn Beginmng October 2023, on or before the 15th day of each month following the 
end of each calendar quarter, a cultivation facility licensee shall file a return, as reqmred 
by the assessor, and pay to the assessor all excise taxes due under this chapter for the 
preceding calendar m-enth quarter 
Sec. 3. 36 MRSA §4925, as amended by PL 2021, c 645, §6 and c 669, §5, is 
further amended to read 
§4925. Apphcat10n of excise tax revenue 
All excise tax revenue collected by the assessor pursuant to this chapter on the sale of 
adult use cannabis must be deposited into the General Fund, except that, on or before the 
last day of ea-eh every 3rd month, the assessor shall transfer 12% of the excise tax 1evenue 
received during the preceding m-enth quarter pursuant to this chapter to the Adult Use 
Cannabis Public Health and Safety and Municipal Opt-in Fund estabhshed in Title 28-B, 
section 1101 
Sec. 4. 
Appropriations and allocations. The following appi opnations and 
allocations are made 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Imtiative Provides one-time funding for computer programming costs to implement the 
change in filing frequency for the cannabis excise tax 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2023-24 
$33,120 
$33,120 
2024-25 
$0 
$0 
Emergency clause. In view of the emergency cited in the preamble, this leg1slat10n 
takes effect when approved ' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively 
SUMMARY 
This amendment changes payment of the adult use cannabis excise tax to a quarterly 
schedule and ehminates certain taxation of multiple transfers of the same cannabis products 
between cannabis estabhshments The amendment also adds an emergency preamble and 
an emergency clause 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved 06/15/23 Jb/ac 
LD 1384 
LR 928(02) 
An Act to Promote Fairness in the Taxation of Adult Use Cannabis by Basmg the Excise Tax on the 
Tier of a Cultivation Fac1hty 
FIScal Note for Bill as Amended by Committee Amendment 'A'ls ~t./ O i:) 
Committee: Taxation 
--"' ( Cost (Savmgs) 
General Fund 
Appropr1ations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detad and Notes 
Fiscal Note Reqmred: Yes 
Fiscal Note 
FY 2023-24 
$2,863,120 
$33,120 
($2,830,000) 
($176,000) 
FY 2024-25 
$426,000 
$0 
($426,000) 
($31,000) 
ProJections-
FY 2025-26 
$355,000 
$0 
($355,000) 
($25,000) 
ProJections 
FY 2026-27 
$310,00'0 
$0 
($310,000) 
($22,000) 
Th1s b1ll changes the schedule for filmg and payment of adult use cannabis exc1se taxes by cult1vat10n fac1ht1es from 
monthly to quarterly and ehmmates the excise tax on the sale and transfer of adult use cannabis bet\veen cult1vat1on 
fac1ht1es It will deciease General Fund revenue by $2,830,000 m fiscal year 2023-24 and $426,000 m fiscal year 
2024-25, which will result m decreased revenue to the Adult Use Cannabis Pubhc Health and Safety Opt-m Fund of 
$176,000 m fiscal year 2023-24 and $31,000 m fiscal year 2024-25 The larger revenue impact m the first year is the 
result of the change m the payment schedule, which shifts two months of revenue from fiscal year 2023-24 mto fiscal 
year 2024-25 In subsequent fiscal years, there 1s a smnlar shift of revenue out of each fiscal year, but an offsettmg 
shift of revenue m from the pnor year 
The bill rncludes a one-tlme General Fru1d appropnatJon of $33,120 to the Department of Admimstrat1ve and 
, \ Financial Services, Bureau of Revenue Services for computer programming costs to implement the change m filmg 
) frequency for the cannabis excise tax