Maine Panel Divvies up Tax Revenue From Sales of Marijuana
Published on 9/27/17
Maine marijuana regulators had a busy week as they approved how much taxes are going where and they decided on several new rules for the incoming industry. Maine voters said YES to legalizing recreational marijuana last year and sales have been pushed back to February 2018 at the soonest. When sales begin customers will be paying a 20% tax on cannabis products, which is almost twice what the legalization bill approved. 10% will be sales tax while the remaining 10% is an excise tax, which will depend on the weight of the product as opposed to the price. Medical marijuana is currently taxed at 5.5% with edibles at 8%.
The panel held two days of hearings with a goal of getting a proposal in shape to be considered during a special legislative session next month.
The Portland Press Herald reports that the panel on Thursday revived the idea of scrapping a 20 percent sales tax in favor of a 10 percent sales tax and 10 percent excise tax.
The idea renewed by House Chairwoman Teresa Pierce of Falmouth is aimed at guarding against revenue fluctuations when price changes occur. The excise tax reflects a wholesale tax based on weight, not price.
