Bill > LD1942

This bill modifies taxation for cannabis and hemp products, with several key changes taking effect January 1, 2026. The legislation introduces a new 20% sales tax on hemp and hemp products containing tetrahydrocannabinol (THC), which is the primary psychoactive compound in cannabis. For adult use cannabis, the bill changes the sales tax transfer to the Adult Use Cannabis Public Health and Safety and Municipal Opt-in Fund from 12% to 6%. The method of taxation for adult use cannabis will shift to a 10% tax based on the average wholesale price of cannabis sold between licensed cultivation facilities. The bill eliminates excise taxes on sales or transfers of adult use cannabis between cultivation facilities and product manufacturing facilities. Additionally, the excise tax reporting and payment schedule will change from monthly to quarterly, with returns and payments now due on the 15th day following each quarter's end. These modifications aim to adjust the tax structure for cannabis and hemp products, potentially impacting pricing, revenue allocation, and industry operations. The entire bill is set to become effective on January 1, 2026, allowing stakeholders time to prepare for the new tax regulations.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1942&snum=132