An Act to Change How Adult Use Cannabis Excise Tax Is Calculated l O
Maine Legislature, Session 131, LD 1405
Committee Amendment CA_A_SA_B_S694 (Senate)
Amends: 28-B MRSA §1101

SENATE AMENDMENT "13 "to COMMITTEE AMENDMENT "A" to H.P. 901, 
L.D. 1405, "An Act to Change How Adult Use Cannabis Excise Tax Is Calculated" 
l O 
Amend the amendment by inserting before section 1 the following: 
'Sec. 1. 28-B MRSA §1101, sub-§2, 1C-1 is enacted to read: 
C-1. Beginning January 1. 2025 and ending December 31, 2026, unobligated balances 
in the fund may be deposited in the General Fund to offset the difference in revenue 
from: 
(1) Changing the excise tax imposed pursuant to Title 36, section 4923, subsection 
from $335 to $175 per pound or fraction thereof of cannabis flower sold by a 
cultivation facility licensee to other licensees in the State: and 
(2) Changing the excise tax imposed pursuant to Title 36, section 4923, subsection 
from $94 to $35 per pound or fraction thereof of cannabis trim sold by a 
cultivation facility licensee to other licensees in the State. 
The State Tax Assessor shall determine monthly the difference in revenue pursuant to 
subparagraphs (1) and (2) and notify the State Controller of the amount that may be 
transferred to the General Fund from the fund. 
Sec. 2. 28-B MRSA §1101, sub-§2, 1C-2 is enacted to read: 
C-2. Beginning January 1, 2027, of the revenue deposited pursuant to subsection 1, 
paragraph A, up to 50% must be deposited in the General Fund to offset the difference 
in revenue from: 
(1) Changing the excise tax imposed pursuant to Title 36, section 4923, subsection 
from $175 per pound or fraction thereof of cannabis flower sold by a cultivation 
0 
facility licensee to other licensees in the State to 10% of the average wholesale 
price of cannabis flower sold to a products manufacturing facility or a cannabis 
store: and 
(2) Changing the excise tax imposed pursuant to Title 36, section 4923, subsection 
from $35 per pound or fraction thereof of cannabis trim sold by a cultivation 
5 
facility licensee to other licensees in the State to 10% of the average wholesale 
price of cannabis trim sold to a products manufacturing facility or a cannabis store. 
SENATE AMENDMENT 
.1d3-1 
,--.. 
SENATE AMENDMENT "13 "to COMMITTEE AMENDMENT "A" to H.P. 901, L.D. 1405 ( S-l99~ 
/ 
The State Tax Assessor shall determine monthly the difference in revenue pursuant to 
subparagraphs 0) and (2) and notify the State Controller of the amount to be 
transferred to the General Fund from the fund.' 
Amend the amendment in section 3 in subsection 1 in the 4th line (page 1, line 27 in 
amendment) by striking out the following: "$150" and inserting the following: '$175' 
Amend the amendment in section 4 in subsection 2 in the 4th line (page 2, line 4 in 
amendment) by striking out the following: "$20" and inserting the following: '$35' 
Amend the amendment by striking out all of section 5 and inserting the following: 
'Sec. 5. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Adult Use Cannabis Regulatory Coordination Fund Z264 
Initiative: Provides funding for one Auditor II position and associated costs. 
OTHER SPECIAL REVENUE FUNDS 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2023-24 
0.000 
$0 
$0 
$0 
2024-25 
1.000 
$121,563 
$8,913 
$130,476 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment changes the amounts of the excise tax proposed in Committee 
Amendment "A" on cannabis flower from $150 per pound to $175 per pound and on 
cannabis trim from $20 per pound to $35 per pound, beginning January 1, 2025 and until 
January 1, 2027, at which time the tax will be 10% of the average wholesale price. To 
offset the loss of revenue from the change to the excise tax beginning January 1, 2025 and 
until January 1, 2027, this amendment allows unobligated balances in the Adult Use 
Cannabis Public Health and Safety and Municipal Opt-in Fund to be deposited in the 
General Fund beginning January 1, 2025 and ending December 31, 2026. To offset the loss 
2 
of revenue from the change to a 10% tax rate from the tax of $17 5 per pound of cannabis 
flower and $35 per pound of cannabis trim, this amendment, beginning January 1, 2027, 
requires up to 50% of the amount of revenue credited to the Adult Use Cannabis Public 
Health and Safety and Municipal Opt-in Fund from the excise tax on adult use cannabis 
6 
and adult use cannabis products to be deposited in the General Fund. The State Tax 
SENATE AMENDMENT 
SENATE AMENDMENT" J3" to COMMITTEE AMENDMENT "A" to H.P. 901, L.D. 1405 LS (J/1 '-/) 
Assessor is required to determine monthly the amount to be transferred and inform the State 
Controller. 
COUNTY: Kennebec 
FISCAL NOTE REQUIRED 
(See attached) 
SENATE AMENDMENT 
Approved: 04/11/24 /W'aC! 
LD 1405 
LR 1636(07) 
An Act to Change How Adult Use Cannabis Excise Tax Is Calculated 
Fiscal Note for Senate Amendment'$' to Committee Amendment "A"( 5-lo'1~ 
Sponsor: Sen. Hickman of Kennebec 
.·;,. 
N_~t. post (Savings) 
Ge~eral Fund 
Appropriati_ons/Allocations 
Qen~i:al _Fund 
Other -Special Revenue Funds 
Revenue 
General Fund· 
Other sp·ecial Revenue Funds 
Transfers 
Genei•al Fu1id 
bther·speci~l Revenue Funds 
Fiscaf Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2023-24 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
FY 2024-25 
($3,920,476) 
• ($130,476) 
$130;476 
$588,000 
$56,000 
$3,202,000 
(_$3 ,202,000) 
Projections 
FY 2025-26 
($1,634,365) 
($134,365)' 
$134,365 
$1,500,000 
$195,000 
$0 
$0 
Projections 
FY 2026-27 
($1,332,380) 
($138,380) 
$138,380 
$1,194,000 
($123,000) 
$0 
$0 
This amen~ment changes the amount of the excise tax on cannabis flower from $150 per pound in the conunittee 
amendment to $175 per pound and the amount of the excise tax on cannabis trim from $20 per pound in the 
committee amendment to $35 per pound, beginning January 1, 2025 and until January 1, 2027. The incremental 
impact is to reduce the revenue loss to the General Fund from the cmmnittee amendment by $588,000 in fiscal year 
2024-25 and to reduce the revenue loss to the Adult Use Cannabis Public Health and Safety and Municipal Opt-in 
Fund (AUPH Fund) by $56,000 in fiscal year 2024-25. 
To offset the loss ofrevenue from the change to the excise tax beginning January 1, 2025 and until January 1, 2027, 
this amendment allows the transfer ofunobligated balances in the the AUPH Fund to be deposited in the General 
Fund beginning January 1, 2025. In fiscal year 2024-25 the transfer will be $3,202,000. Additional transfers will be 
required in fiscal year 2025-26 and the amount will depend on excise tax revenue generated and available balances. 
Additionally, beginning Janua1y 1, 2027 to offset the loss ofrevenue from the change to a 10% tax rate from the tax 
of $17 5 per pound of cannabis flower and $3 5 per pound of cannabis trim, this amendment, requires up to 50% of 
amount ofrevenue credited to the AUPH Fund from the excise tax on adult cannabis and adult cannabis products to 
be deposited in the General Fund. 
LR1636(07) - Fiscal Note - Page 1 of 1