Bill > LD1869

This bill allows municipalities in Maine to implement a local option sales tax of up to 1% on recreational cannabis sales through a voter referendum. The bill provides detailed guidelines for how such a local sales tax would be implemented, including requirements that municipalities notify the State Tax Assessor at least 90 days before the tax takes effect, and that retailers collect and transfer the tax revenue in the same manner as state sales tax. The revenue generated from this local option sales tax must be held in a special revenue account and can only be spent on public safety and education initiatives. The referendum process requires that the ballot question specify the tax rate and intended use of funds, and the tax will only take effect if a majority of voters approve it and voter turnout meets at least 20% of the most recent gubernatorial election's total votes. Importantly, the bill stipulates that this local sales tax revenue cannot be used to reduce other state aid to the municipality and must be additional funding. The bill provides specific provisions for how revenue will be distributed, administrative costs managed, and ensures that the local cannabis sales tax does not alter the existing range of items subject to sales tax.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1869&snum=132