An Act to Change How the Adult Use Cannabis Excise Tax Is Calculated
Maine Legislature, Session 131, LD 1392
Committee Amendment CA_A_S418 (Senate)
Amends: 36 MRSA §1811, 36 MRSA §4923

COMMITTEE AMENDMENT "A "to S P 559, L D 1392, "An Act to Change How 
the Adult Use Cannabis Excise Tax Is Calculated" 
Amend the bill by stnkmg out the title and substitutmg the followmg 
'An Act to Increase the Sales Tax on Adult Use Cannabis and Change How the Excise 
Tax Is Calculated' 
Amend the bill by stnkmg out everythmg after the enactmg clause and msertmg the 
followmg 
'Sec. 1. 36 MRSA §1811, sub-§1, ,rA, as amended by PL 2019, c 607, Pt B, §2, 
1s repealed 
Sec. 2. 36 MRSA §1811, sub-§1, ,r.B, as amended by PL 2019, c 607, Pt B, §3, 
1s repealed 
Sec. 3. 36 MRSA §1811, sub-§1, ,re, as amended by PL 2019, c 607, Pt B, §4 
and PL 2021, c 669, §5, 1s repealed 
Sec. 4. 36 MRSA §1811, sub-§1, ,rD, as amended by PL 2021, c 578, §4, c 658, 
§286 and c 669, §5, 1s further amended by amendmg subparagraph (5) to read 
(5) Ten percent on the value of adult use cannabis, adult use cannabis products 
and, 1f sold by a person to an md1v1dual who 1s not a quahfymg patient, cannabis 
and cannabis products begmmng on the first day of the calendar month m which 
adult use cannabis and adult use cannabis products may be sold m the State by a 
cannabis establishment licensed to conduct retail sales pursuant to Title 28-B, 
chapter 1, except that the applicable tax rate under this subparagraph 1s 12 5% for 
sales occurrmg on or after January 1, 2024 and before January 1, 2025 and 15% 
for sales occurrmg on or after January 1, 2025 
Sec. 5. 36 MRSA §4923, sub-§7 1s enacted to read 
7. Phase-down. The excise tax Imposed pmsuant to this sect10n on 01 afte1 Januaiy 
1, 2024 and before January 1, 2025 1s reduced for each applicable excise tax rate m 
COMMITTEE AMENDMENT 
ROS 
COMMJITEE AMENDMENT .. A 
.. to s p 559, L D 1392 ( s-'11 e,") 
subsections 1 to 5 by 1/3 
The excise tax imposed pursuant to this section on or after 
January 1, 2025 is reduced for each applicable excise tax rate m subsect10ns 1 to 5 by 2/3 
Sec. 6. Application. This Act applies to sales occurrmg on or after January 1, 2024 ' 
Amend the bill by relettermg or renumbermg any nonconsecutive Part letter or sect10n 
number to read consecutively 
SUMMARY 
This amendment replaces the bill and changes the title The amendment provides for a 
phase-down of the cannabis excise tax and a concurrent mcrease of the sales tax on adult 
use cannabis to 15% 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved 06/19/23 ;b,,ae! 
LD 1392 
LR 410(02) 
An Act to Change How the Adult Use Cannabis Excise Tax Is Calculated 
Fiscal Note for Bill as Amended by Committee Amendment 'It"( ~ .. 4J{' 
Committee: Taxat10n 
/1 
' ) 
Net Cost (Savmgs) 
, General Fund 
Revenue 
Genet al Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Reqmred: Yes 
Fiscal Note 
FY 2023-24 
$105,000 
($105,000) 
$67,000 
FY 2024-25 
$545,000 
($545,000) 
$429,000 
Pro1ect10ns 
FY 2025-26 
$856,000 
($856,000) 
$809,000 
Pro1ect1ons 
FY 2026-27 
$729,000 
($729,000) 
$920,000 
This b11l concmTently mcreases the sales tax on adult use cannabis and adult use cannabis products and decreases the 
cannabis excise tax The decrease m cannabis excise tax revenue 1s greater than the mcrease m cannabis sales tax 
revenue, resultmg m a net decrease m General Fund revenue of $105,000 m fiscal year 2023-24 and $545,00 m fiscal 
year 2024-25 
The mcrease m the cannabis sales tax will mcrease revenue to the Local Government Fund by $70,000 m fiscal year 
2023-2024 and $446,000 m fiscal year 2024-25 The mcrease m the cannabis sales tax and decrease m the cannabis 
excise tax will decrease revenue to the Adult Use Cannabis Pubhc Health and Safety and Mumc1pal Opt-m Fund by 
$3,000 m fiscal year 2023-24 and $17,000 m fiscal year 2024-25 The combmed impact of these changes to Other 
Special Revenue Funds 1s a revenue mcrease of $67,000 m fiscal year 2023-24 and $429,000 m fiscal year 2024-25 
LR0410(02) - Fiscal Note - Page 1 of 1