An Act to P10v1de Equitable Tax Treatment to State-licensed Cannabis Busmesses
Maine Legislature, Session 131, LD 1063
Committee Amendment CA_A_S400 (Senate)
Amends: 28-B MRSA §1101

COMMITTEE AMENDMENT "A "to SP 432, L D 1063, "An Act to P10v1de 
Equitable Tax Treatment to State-licensed Cannabis Busmesses" 
Amend the bill by msertmg before sectmn 1 the followmg 
'Sec. 1. 28-B MRSA §1101, sub-§2, ,ID 1s enacted to read 
D 
Any funds remammg m the fund after expenditures made m accordance with 
paragraphs A to C must be used to fund 
(1) The cost of the tax deductmns provided pursuant to Title 36, section 5122, 
subsection 2, paragraph PP and Title 36, section 5200-A, subsection 2, paragraph 
BB By June 1st annually, the State Tax Assessor shall determme the cost of those 
deductions durmg the pnor calendar year and report that amount to the State 
Controller, who shall transfer that amount from the remammg funds 111 the fund to 
the General Fund, and 
(2) The cost of the position m the Bureau of Revenue Services w1thm the 
department to admmister the tax deductions provided pursuant to Title 36, section 
5122, subsectmn 2, paragraph PP and Title 36, section 5200-A, subsection 2, 
paragraph BB By June 1st annually, the commissmner shall determme the cost of 
the position m the bureau to admimster those deductmns durmg the pnor calendar 
year and report that amount to the State Controller, who shall transfer that amount 
7 
from the remammg funds m the fund to the General Fund ' 
Amend the bill by msertmg after sectmn 2 the followmg 
'Sec. 3. Appropriations and allocations. The followmg appropnat1ons and 
0 
allocations are made 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Senr1ces, Bureau of 0002 
Imt1ative Provides fundmg for one Tax Exammer pos1t10n effective October 1, 2023 and 
related All Other costs 
COMMITTEE AMENDMENT 
~ 1 
COMMITTEE AMENDMENT A 
"to SP 432, L D 1063 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
2023-24 
000 
$88,100 
$5,818 
$93,918 
2024-25 
000 
$119,500 
$4,345 
$123,845 
Amend the bill by relettermg or renumbeung any nonconsecutive Part letter or sect10n 
number to read consecutively 
SUMMARY 
This amendment adds a new section to the bill providmg that the cost of the tax 
deduct10ns provided m the bill and a position m the Department of Admmistrative and 
Fmancial Services, Bureau of Revenue Services to admmister the deductions must be 
funded by the Adult Use Cannabis Pubhc Health and Safety and Mumcipal Opt-m Fund, 
to the extent that any funds remammg m the fund are available The amendment also adds 
an appropriations and allocat10ns section 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved 06/17 /23 ;tvac:.. 
LD 1063 
LR 242(02) 
An Act to Provide Eqmtable Tax Treatment to State-licensed Cannabis Busmesses 
Fiscal Note for Bill as Amended by Committee Amendment A• ( S ·1/Ci> ""\ 
Committee: Taxation 
, ) 
Net Cost (Savmgs) 
General Fund 
Appropriat1ons/Allocat1ons 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Transfers 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Reqmred: Yes 
Fiscal Note 
FY 2023-24 
($327,388) 
$93,918 
($1,140,000) 
($60,000) 
$1,561,306 
($1,561,306) 
FY 2024-25 
($1,096,689) 
$123,845 
($1,444,000) 
($76,000) 
$2,664,534 
($2,664,534) 
ProJectmns 
FY 2025-26 
($906,849) 
$128,147 
($1,691,000) 
($89,000) 
$2,725,996 
($2,725,996) 
Pr0Ject1ons 
FY 2026-27 
($777,772) 
$132,604 
($1,900,000) 
($100,000) 
$2,810,376 
($2,810,376) 
This bill makes the mcome tax deduction for cannabis busmess expenses, currently available to registered caregivers 
and registered dispensanes, also available to cannabis manufacturmg facihties, estabhshments and testmg facihties It 
will decrease General Fund revenue by $1,140,000 m fiscal year 2023-24 and by $1,444,000 m fiscal year 2024-25 
and decrease Local Government Fund revenue by $60,000 m fiscal year 2023-24 and $76,000 m fiscal year 2024-25 
The bill reqmres that funds from the Adult Use Cannabis Pubhc Health and Safety and Municipal Opt-m Fund 
(PHSMO) be transferred to the General Fund m June of each year to offset the revenue loss m the pnor calendar year 
from the tax deduction for cannabis busmess expenses and to fund the cost of a posit10n m the Department of 
Admm1strative and Fmancial Services (OAFS), Bureau of Revenue Services The bill mcludes a transfer of 
$1,561,306 m fiscal year 2023-24 and $2,664,534 m fiscal year 2024-25 from the PHSMO Other Special Revenue 
Funds account to the General Fund for this purpose The PHSMO currently has sufficient funds for the transfer 
However, other authonzed expenditures from the PHSMO may mcrease to the pomt that sufficient funds are not 
available to offset the tax revenue loss and position cost 
) The bill mcludes ongomg Geneial Fund appropnat1ons to the DAFS, Bureau of Revenue Services of $93,918 m fiscal 
year 2023-24 and $123,845 m fiscal year 2024-25 for one Semor Tax Exammer position, effective October 1, 2023, to 
admm1ster mcome tax deductions for cannabis busmesses 
LR0242(02) - Fiscal Note - Page 1 of 1