An Act to Increase the Sales Tax on Adult Use Cannabis and Change How the Excise Tax Is Calculated
Maine Legislature, Session 131, LD 1405
Committee Amendment CA_B_H835 (House)
Amends: 36 MRSA §1811, 36 MRSA §4923

COMMITTEE AMENDMENT"^) "toH.P.901,L,D, 1405, "AnActtoChange How
Adult Use Cannabis Excise Tax Is Cafculated"
Amend the bill by striking out the title and substituting the following;
'An Act to Increase the Sales Tax on Adult Use Cannabis and Change How the Excise
Tax Is Calculated'
Amend the bill by striking out everythmg after the enacting clause and inserting the
followmg;
'See. 1. 36 MRSA §1811, sub-§l, ^A, as amended by PL 2019, c. 607, Ft. B, §2,
is repealed,
Sec. 2. 36 MRSA §1811, sub-§l, ^B, as amended by PL 2019,c.607, Ft, B, §3,
is repealed,
See. 3. 36 MRSA §1811, sub-§l, ^fC, as amended by PL 2019, c. 607, Pt, B, §4
and amended by PL 2021, c. 669,§5, is repealed,
Sec. 4. 36 MRSA §1811, sub-§l, ^D, as amended by PL 2021, c. 578, §4; c, 658,
§286;and c, 669, §5, is further amended by amending subparagraph (5) to read:
(5) Ton percent For sales occurring before January 1. 2025. 10% on the value of
adult use cannabis, adult use cannabis products and, if sold by a person to an
individual who is not a qualifying patient, cannabis and cannabis products
beginning on the first day of the calendar month in which adult use cannabis and
adult use cannabis products may be sold in the State by a cannabis establishment
licensed to conduct retail sales pursuant to Title 28-B, chapter 1. The applicable
rate of tax under this subparaeraDh is 12.5% for sales occurrine on or after January
1,2025 and before January 1.2026 and 15% for sales occurrme on or after January
1.2026,
Sec. 5. 36 MRSA §4923, sub-§7 is enacted to read:
COMMITTEE AMENDMENT
ROS COMMITTEE AMENDMENT " (2^" to H,P. 901, L.D. 1405
7. Phase-down. The excise tax imposed pursuant to this section on or after January
1, 2025 and before January 1. 2026 is reduced for each applicable excise tax rate in
subsections 1 to 5 by 1/3, The excise tax imRosed nursuant to this section on or after
January 1. 2026 is reduced for each applicable excise tax rate in subsections 1 to 5_by 2/3.
See. 6. Application. This Act applies to sales occurring on or after Januaiy 1,2025,'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment replaces the bill and changes the title. The amendment provides for a
phase-down of the adult use cannabis excise tax and a concurrent increase of the sales tax
on adult use cannabis to 12.5% and then to 15%.
FISCAL NOTE REQUmED
(See attached)
COMMITTEE AMENDMENT
Approved; 02/20/24 ^K?<S.
LD 1405 LR 1636(04)
An Act to Change How Adult Use Cannabis Excise Tax Is Calculated
Fiscal Note for Bill as Amended by Committee Amendment '^'
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Net Cost (Savings)
General Fund $0 $264,000 $578,000 $583,000
Revenue ,
General Fund $0 ($264,000) ($578,000) ($583,000)
Other Special Revenue Funds . $0 $98,000 $438,000 $722,000
Fiscal Detail and Notes
This bill concurrently decreases the excise tax on adult use cannabis and caimabis products and increases the sales
tax on adult use cannabis and cannabis products, effective January 1, 2025. In fiscal year 2024-25, cannabis excise
tax revenue will decrease by $2,625,000 and cannabis sales tax revenue will increase by $2,459,000, Together these
changes will decrease revenue to the General Fund by $264,000 and decrease revenue to the Adult Use Cannabis
Public Health aud Safety and Municipal Opt-in Fund by $2,000 in fiscal year 2024-25, The increase in cannabis sales
tax revenue will increase Local Government Fund revenue by $100,000 in fiscal year 2024-25, The combined impact
of these changes to Other Special Revenue Funds is an increase of $98,000 in fiscal year 2024-25,
Administrative costs to the Department ofAdminstrative and Financial Services, Bureau of Revenue Services to
implement these camiabis tax changes are expected to be minor and can be absorbed within existing budgeted
resources,
LR1636(04) - Fiscal Note - Page 1 of 1