An Act to Modify Taxes Applying to Adult Use Cannabis, Hemp
Maine Legislature, Session 132, LD 1942
Committee: Taxation
Sponsors: SAYRE, BICKFORD
Amends: 36 MRSA §1811, 36 MRSA §1818, 36 MRSA §4921, 36 MRSA §4923, 36 MRSA §4923-A, 36 MRSA §4923-B, 36 MRSA §4924, 36 MRSA §4925

Legislative Document
No. 1942
H.P. 1301
House of Representatives, May 7, 2025
An Act to Modify Taxes Applying to Adult Use Cannabis, Hemp 
and Hemp Products
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative SAYRE of Kennebunk.
Cosponsored by Senator BICKFORD of Androscoggin.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §1811, sub-§1, ¶D, as amended by PL 2023, c. 643, Pt. H, §23 
and affected by §29 and amended by c. 673, §22 and affected by §28, is further amended 
to read:
D.  For sales occurring on or after October 1, 2019 and before January 1, 2026, the rate 
of tax is 5.5% on the value of all tangible personal property and taxable services, except 
the rate of tax is:
(1)  Eight percent on the value of prepared food;
(2)  Eight percent on the value of liquor sold in licensed establishments as defined 
in Title 28‑A, section 2, subsection 15, in accordance with Title 28‑A, chapter 43 
and liquor sold for on-premises consumption by a licensed brewery, small brewery, 
winery, small winery, distillery or small distillery pursuant to Title 28‑A, section 
1355‑A, subsection 2, paragraph B;
(3)  Nine percent on the value of rental of living quarters in any hotel, rooming 
house or tourist or trailer camp;
(4)  Ten percent on the value of rental for a period of less than one year of:
(a)  An automobile; or
(c)  A loaner vehicle that is provided other than to a motor vehicle dealer's 
service customers pursuant to a manufacturer's or dealer's warranty; and
(5)  Ten percent 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.
Sec. 2.  36 MRSA §1811, sub-§1, ¶E is enacted to read:
E.  For sales occurring on or after January 1, 2026, the rate of tax is 5.5% on the value 
of all tangible personal property and taxable services, except the rate of tax is:
(1)  Eight percent on the value of prepared food;
(2)  Eight percent on the value of liquor sold in licensed establishments, as defined 
in Title 28‑A, section 2, subsection 15, in accordance with Title 28‑A, chapter 43, 
and liquor sold for on-premises consumption by a licensed brewery, small brewery, 
winery, small winery, distillery or small distillery pursuant to Title 28‑A, section 
1355‑A, subsection 2, paragraph B;
(3)  Nine percent on the value of rental of living quarters in any hotel, rooming 
house or tourist or trailer camp;
(4)  Ten percent on the value of rental for a period of less than one year of:
(a)  An automobile; or
(b)  A loaner vehicle that is provided other than to a motor vehicle dealer's 
service customers pursuant to a manufacturer's or dealer's warranty;
(5)  Ten percent 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 sold by a cannabis establishment licensed to conduct retail 
sales pursuant to Title 28‑B, chapter 1; and
(6)  Twenty percent on the value of hemp, as defined in Title 7, section 2231, 
subsection 
1-A, 
paragraph 
D, 
and 
hemp 
products 
that 
contain 
tetrahydrocannabinol.
Sec. 3.  36 MRSA §1818, as amended by PL 2021, c. 645, §5 and c. 669, §5, is 
further amended to read:
§1818.  Tax on adult use cannabis and adult use cannabis products
All sales tax revenue collected pursuant to section 1811 on the sale of adult use 
cannabis and adult use cannabis products must be deposited into the General Fund, except 
that, before January 1, 2026, on or before the last day of each month, the State Controller 
shall transfer 12% of the sales tax revenue received by the assessor during the preceding 
month pursuant to section 1811 to the Adult Use Cannabis Public Health and Safety and 
Municipal Opt-in Fund established under Title 28‑B, section 1101.  Beginning January 1, 
2026, all sales tax revenue collected pursuant to section 1811 on the sale of adult use 
cannabis and adult use cannabis products must be deposited into the General Fund, except 
that, on or before the last day of each month, the State Controller shall transfer 6% of the 
sales tax revenue received by the assessor during the preceding month pursuant to section 
1811 to the Adult Use Cannabis Public Health and Safety and Municipal Opt-in Fund 
established under Title 28-B, section 1101.
Sec. 4.  36 MRSA §4921, sub-§1-A is enacted to read:
1-A.  Average wholesale price.  "Average wholesale price" means the median 
wholesale price per pound or fraction thereof of cannabis flower or cannabis trim that is 
sold or transferred from cultivation facility licensees to other licensees in the State, as 
determined by the department on an annual basis by routine technical rulemaking as 
described by Title 5, chapter 375, subchapter 2-A.
Sec. 5.  36 MRSA §4921, sub-§9-A is enacted to read:
9-A.  Products manufacturing facility.  "Products manufacturing facility" has the 
same meaning as in Title 28-B, section 102-A, subsection 51.
Sec. 6.  36 MRSA §4923, as amended by PL 2023, c. 679, Pt. C, §13, is repealed.
Sec. 7.  36 MRSA §4923-A, as enacted by PL 2021, c. 323, §5 and amended by c. 
669, §5, is repealed.
Sec. 8.  36 MRSA §4923-B is enacted to read:
§4923-B.  Excise tax imposed; beginning January 1, 2026
1.  Excise tax on average wholesale price.  Beginning January 1, 2026, a cultivation 
facility licensee shall pay an excise tax at the rate of 10% of the average wholesale price of 
adult use cannabis, including cannabis flower, cannabis trim, immature cannabis plants and 
seedlings, mature cannabis plants and cannabis seeds, sold to other licensees in this State.
2.  Sales and transfers between cultivation facilities and products manufacturing 
facilities.  An excise tax is not imposed under this section on a sale by a cultivation facility 
or products manufacturing facility of adult use cannabis to another cultivation facility or 
products manufacturing facility or on a transfer by a cultivation facility or products 
manufacturing facility of adult use cannabis to another cultivation facility or products 
manufacturing facility.
Sec. 9.  36 MRSA §4924, as enacted by PL 2019, c. 231, Pt. B, §7, is amended to 
read:
§4924.  Returns; payment of excise tax
On Beginning January 1, 2026, on or before the 15th day of each month following the 
end of each quarter, a cultivation facility licensee shall file a return, as required by the 
assessor, and pay to the assessor all excise taxes due under this chapter for the preceding 
calendar month quarter.
Sec. 10.  36 MRSA §4925, as amended by PL 2021, c. 645, §6 and c. 669, §5, is 
further amended to read:
§4925.  Application of excise tax revenue
All excise tax revenue collected by the assessor pursuant to this chapter on the sale of 
adult use cannabis must be deposited into the General Fund, except that, before January 1, 
2026, on or before the last day of each month, the assessor shall transfer 12% of the excise 
tax revenue received during the preceding month pursuant to this chapter to the Adult Use 
Cannabis Public Health and Safety and Municipal Opt-in Fund established in Title 28‑B, 
section 1101.  Beginning January 1, 2026, all excise tax revenue collected by the assessor 
pursuant to this chapter on the sale of adult use cannabis must be deposited into the General 
Fund, except that, on or before the last day of every 3rd month, the assessor shall transfer 
6% of the excise tax revenue received during the preceding quarter pursuant to this chapter 
to the Adult Use Cannabis Public Health and Safety and Municipal Opt-in Fund established 
in Title 28-B, section 1101.
Sec. 11.  Effective date. This Act takes effect January 1, 2026.
SUMMARY
Beginning January 1, 2026, this bill imposes a sales tax of 20% on hemp and hemp 
products that contain tetrahydrocannabinol, or THC.  It changes the percentage from 12% 
to 6% of the adult use cannabis sales tax and excise tax that is transferred to the Adult Use 
Cannabis Public Health and Safety and Municipal Opt-in Fund.   It changes the method of 
taxation of adult use cannabis products to 10% of the average wholesale price of adult use 
cannabis sold by a cultivation facility licensee to other licensees.  It provides that an excise 
tax is not imposed on the sale or transfer of adult use cannabis between cultivation facilities 
and products manufacturing facilities.  It changes payment of the adult use cannabis excise 
tax to a quarterly schedule.