An Act to Promote Fairness in the Taxation of Adult Use Cannabis by Basing the Excise Tax on the Tier of a Cultivation Facility
Maine Legislature, Session 131, LD 1384
Committee: Taxation
Sponsors: CHIPMAN, PERRY, PIERCE, POULIOT, RANA
Amends: 36 MRSA §4923, 36 MRSA §4923-A, 36 MRSA §4923-B

Legislative Document
No. 1384
S.P. 549
In Senate, March 28, 2023
An Act to Promote Fairness in the Taxation of Adult Use Cannabis 
by Basing the Excise Tax on the Tier of a Cultivation Facility
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator CHIPMAN of Cumberland.
Cosponsored by Representative PERRY of Bangor and
Senators: PIERCE of Cumberland, POULIOT of Kennebec, Representative: RANA of Bangor.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §4923, as amended by PL 2021, c. 323, §§3 and 4 and c. 669, §5, 
is further amended by amending the section headnote to read:
§4923.  Excise tax imposed prior to July 1, 2024
Sec. 2.  36 MRSA §4923, first ¶, as enacted by PL 2019, c. 231, Pt. B, §7 and 
amended by PL 2021, c. 669, §5, is further amended to read:
Beginning on the first day of the calendar month in which adult use cannabis may be 
sold in the State by a cultivation facility under Title 28‑B, chapter 1 and prior to July 1, 
2024, an excise tax on adult use cannabis is imposed in accordance with this chapter.
Sec. 3.  36 MRSA §4923-A, as enacted by PL 2021, c. 323, §5 and amended by c. 
669, §5, is amended to read:
§4923-A.  Calculation of excise tax imposed on wet cannabis flower and wet cannabis 
trim
For purposes of the excise tax imposed pursuant to section 4923 or section 4923-B on 
wet cannabis flower or wet cannabis trim, a cultivation facility licensee shall calculate the 
taxable weight by reducing the total weight of the wet cannabis flower or wet cannabis trim 
by 75% before applying the excise tax.
Sec. 4.  36 MRSA §4923-B is enacted to read:
§4923-B.  Excise tax imposed beginning July 1, 2024
Beginning  July 1,  2024, an excise tax on adult use cannabis is imposed in accordance 
with this chapter.
1. Excise tax on cannabis flower.  This subsection governs excise tax imposed on 
cannabis flower.
A. A tier 1 cultivation facility licensee as described in Title 28-B, section 301 is exempt 
from excise taxes on cannabis flower sold to other licensees in the State.  
B. A tier 2 cultivation facility licensee as described in Title 28-B, section 301 shall pay 
an excise tax of $50 per pound or fraction thereof of cannabis flower sold to other 
licensees in the State. 
C. A tier 3 cultivation facility licensee as described in Title 28-B, section 301 shall pay 
an excise tax of $100 per pound or fraction thereof of cannabis flower sold to other 
licensees in the State. 
D. A tier 4 cultivation facility licensee as described in Title 28-B, section 301 shall pay 
an excise tax of $200 per pound or fraction thereof of cannabis flower sold to other 
licensees in the State. 
2. Excise tax on cannabis trim.  This subsection governs excise tax imposed on 
cannabis trim.
A. A tier 1 cultivation facility licensee as described in Title 28-B, section 301 is exempt 
from excise taxes on cannabis trim sold to other licensees in the State.  
B. A tier 2 cultivation facility licensee as described in Title 28-B, section 301 shall pay 
an excise tax of $10 per pound or fraction thereof of cannabis trim sold to other 
licensees in the State. 
C. A tier 3 cultivation facility licensee as described in Title 28-B, section 301 shall pay 
an excise tax of $30 per pound or fraction thereof of cannabis trim sold to other 
licensees in the State. 
D. A tier 4 cultivation facility licensee as described in Title 28-B, section 301 shall pay 
an excise tax of $50 per pound or fraction thereof of cannabis trim sold to other 
licensees in the State. 
3. Excise tax on immature cannabis plants and seedlings.  A cultivation facility 
licensee shall pay an excise tax of $1.50 per immature cannabis plant or seedling sold to 
other licensees in the State.  
4. Excise tax on mature cannabis plants.  A cultivation facility licensee shall pay an 
excise tax of $35 per mature cannabis plant sold to other licensees in the State.  
5. Excise tax on cannabis seeds.  A cultivation facility licensee shall pay an excise tax 
of 30¢ per cannabis seed sold to other licensees in the State.  
6. Excise tax on purchases from registered caregivers and registered dispensaries.  
A cultivation facility licensee authorized pursuant to Title 28-B, section 501, subsection 6, 
paragraph A to purchase cannabis plants and cannabis seeds from registered caregivers and 
registered dispensaries that transacts such a purchase shall pay to the assessor the excise 
taxes that would have been imposed under subsections 1 to 5 on the sale of the cannabis 
plants and cannabis seeds if the cannabis plants and cannabis seeds had been sold by a 
cultivation facility licensee to another licensee.  
7. Multiple licenses.  When a cultivation facility licensee also holds a license to operate 
another cannabis establishment, the taxes imposed by subsections 1 to 5 apply to any 
transfer of cannabis from the cultivation facility to the other cannabis establishment or, if 
no such transfer is made, to any activity undertaken pursuant to Title 28-B, section 501, 
subsection 2 or 4 with regard to cannabis cultivated by the cultivation facility.
SUMMARY
Beginning July 1, 2024, this bill changes the basis for the calculation of the excise tax 
on cannabis flower and cannabis trim by establishing rates based on the tier of a cultivation 
facility licensee.