An Act to Modify
Maine Legislature, Session 132, LD 1942
Committee Amendment CA_A_H901 (House)
Amends: 36 MRSA §1811, 36 MRSA §4921, 36 MRSA §4923, 36 MRSA §4924

COMMITTEE AMENDMENT "/^" to H.P. 1301, L.D. 1942, "An Act to Modify
Taxes Applying to Adult Use Cannabis, Hemp and Hemp Products"
Amend the bill by striking out the title and substituting the following:
'An Act to Establish an Excise Tax on Prerolled Cannabis Cigarettes and to Change
the Tax on Potentially Intoxicating Hemp Products'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 36 MRSA §1811, sub-§l, ^D, as amended by PL 2025,c.87,§7 and c.
388, Pt. P, §1 and affected by §5, is further amended by amending subparagraph (4),
division (c) to read:
(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; aad
Sec. 2. 36 MRSA §1811, sub-§l, ^D, as amended by PL 2025,c. 87,§7 and c.
388, Pt, F, §1 and affected by §5, is further amended by amending subparagraph (5) to read:
(5) Before January 1, 2026, 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. For sales occurring on or after January 1, 2026, the
applicable rate of tax under this subparagraph is 14°/o-: and
Sec. 3. 36 MRSA §1811, sub-§l, ^D, as amended by PL 2025,c. 87,§7 and c.
388, Pt. F, §1 and affected by §5, is further amended by enacting subparagraph (6) to read:
(6) For sales occurrine on or after January 1. 2027. 14% on the value of a
potentially intoxicatme hemp product, as defined in Title 7. section 2231.
subsection 1-A. paraeraoh H.
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " /-f" to H.P. 1301, L.D. 1942
Sec. 4. 36 MRSA §4921, sub-§9-B is enacted to read;
9-B. Prerolled cannabis ciearette. "Prerolled carmabis ciearette" means cannabis
flower, cannabis_trim or a combination of cannabis flower and cannabis trim that is rolled
in rolling papers, cigarette papers or wraps, with or without a cardboard filter.
Sec. 5. 36 MRSA §4923, sub-§3-B is enacted to read:
3-B. Excise tax onprerQlIed cannabis ciearettes. Beeinmne Januaiv 1. 2027, a
cultivation facility licensee shall pay an excise tax of $ 143 per pound or fraction thereof of
the combined weight of the cannabis flower and cannabis trim contained in a prerolled
cannabis cigarette_sold to another licensee in the State.
Sec. 6. 36 MRSA §4924, first ^[, as enacted by PL 2019, c. 231, Pt. B, §7, is
amended to read:
©fit Before January 1. 2027. on or before the 15th day of each month, 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, Begumine January
1. 2027. on or before the last day of each month, 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.
Sec. 7. Appropriations and allocations. The following appropriations and
allocations are made,
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative: Provides one-time funding for administrative expenses related to programming
changes for the sales tax and caimabis excise tax returns.
GENERAL FUND 2025-26 2026-27
AllOther $0 $91,510
GENERAL FUND TOTAL $0 $91,510
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 makes the
following changes to the carmabis sales tax and excise tax laws, effective January 1, 2027.
1. It imposes a sales tax of 14% on the value of a potentially intoxicating hemp product,
2, It defines "prerolled cannabis cigarette" and provides that a cultivation facility
licensee must pay an excise tax of $143 per pound or fraction thereof of the combiued
weight of the cannabis flower and cannabis trim contained in a prerolled cannabis cigarette
8 sold to another cannabis establishment licensee in the State,
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT UIA " to H.P. 1301, L.D. 1942
3. It changes the day of the month upon which an excise tax return is due for a
cultivation facility from on or before the 15th day of the month to on or before the last day
of the month.
FISCAL NOTE REQUIRED
(See attached)
COMMIHEE AMENDMENT
Approved; 03/20/26 1-KI-
LD 1942 LR 2082(02)
An Act to Modify Taxes Applying to Adult Use Cannabis, Hemp and Hemp Products
Fiscal Note for Bill as Amended by Committee Amendment ^
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Net Cost (Savings)
General Fund
Appropriations/Allocations
General Fund
Revenue
General Fund
Other Special Revenue Funds
$0
$0
$0
$0
$782,810
$91,510
($691,300)
($59,700)
$752,900
$0
($752,900)
($77,100)
$755,500
$0
($755,500)
($77,500)
Fiscal Detail and Notes
This bill would result in a revenue decrease to the General Fund of $691,300 in fiscal year 2026-27, $752,900 in fiscal
year 2027-28 and $755,500 in fiscal year 2028-29 from reducing the adult use cannabis excise tax rate on adult use
pre-rolls and changing the due date for filing the excise tax. The bill would also result in a revenue decrease to the
Local Government Fund and the Adult Use Cannabis Public Health and Safety Fund totaling $59,700 in fiscal year
2026-27, $77,100 in fiscal year 2027-28 and $77,500 in fiscal year 2028-29. No additional revenue is assumed from
the bill's higher sales tax rate on potentially intoxicating hemp products. The bill includes a one-time General Fund
appropriation to the Department of Administrative and Financial Services, Bureau of Revenue Services of $91,510 in
fiscal year 2026-27 for administrative costs to implement the provisions of the bill.
LR2082(02) - Fiscal Note - Page 1 of 1