HP0260, LD 335, item 1, An Act To Require the State To Distribute 25 Percent of Adult Use Marijuana Retail Sales and Excise Tax Revenue to Generating Municipalities

An Act To Require the State To Distribute 25 Percent of Adult Use Marijuana Retail Sales and Excise Tax Revenue to Generating Municipalities

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 28-B MRSA §407 is enacted to read:

§ 407. Revenue allocation to municipalities

1. Local Government Marijuana Revenue Fund established. In recognition of the local costs of regulation and enforcement with respect to the activities associated with the legalization of adult use marijuana under this chapter and to assist in offsetting negative effects on local resources, there is established the Local Government Marijuana Revenue Fund, referred to in this section as "the fund."

2. Fund sources. The fund receives money transferred to the fund pursuant to section 1003, subsection 1 and Title 36, section 1818, subsection 1.

3. Distribution of funds. The Treasurer of State shall transfer the balance in the fund on the 20th day of each month. Money in the fund must be distributed to each municipality in which the legislative body has voted to adopt a new ordinance, amend an existing ordinance or approve a warrant article allowing a marijuana establishment within the municipality, in proportion to the ratio of state revenues generated by all marijuana establishments operating within the municipality to the state revenues generated by all marijuana establishments operating within the State.

4. Unorganized and deorganized areas. For purposes of municipal marijuana revenue allocation pursuant to this section, unorganized and deorganized areas must be treated as if they are municipalities.

Sec. 2. 28-B MRSA §1003, as enacted by PL 2017, c. 409, Pt. A, §6, is repealed and the following enacted in its place:

§ 1003. Application of excise tax revenue

All excise tax revenue collected by the department pursuant to this subchapter on the sale of adult use marijuana must be deposited into the General Fund, except that:

1. Transfer to Local Government Marijuana Revenue Fund. On or before the 10th day of each month, the department shall transfer to the Local Government Marijuana Revenue Fund established under section 407 without any reduction 25% of the excise tax revenue received by the department during the preceding month pursuant to this subchapter; and

2. Transfer to Adult Use Marijuana Public Health and Safety Fund. On or before the last day of each month, the department shall transfer to the Adult Use Marijuana Public Health and Safety Fund established under section 1101 12% of the difference between the excise tax revenue received by the department during the preceding month pursuant to this subchapter and the transfer made pursuant to subsection 1.

Sec. 3. 36 MRSA §1818, as enacted by PL 2017, c. 409, Pt. D, §4, is repealed and the following enacted in its place:

§ 1818. Tax on adult use marijuana and adult use marijuana products

All sales tax revenue collected pursuant to section 1811 on the sale of adult use marijuana and adult use marijuana products must be deposited into the General Fund, except that:

1. Transfer to Local Government Marijuana Revenue Fund. On or before the 10th day of each month, the State Controller shall transfer to the Local Government Marijuana Revenue Fund established under Title 28-B, section 407 without any reduction 25% of the sales tax revenue received by the assessor during the preceding month pursuant to section 1811; and

2. Transfer to Adult Use Marijuana Public Health and Safety Fund. On or before the last day of each month, the State Controller shall transfer to the Adult Use Marijuana Public Health and Safety Fund established under Title 28-B, section 1101 12% of the difference between the sales tax revenue received by the assessor during the preceding month pursuant to section 1811 and the transfer made pursuant to subsection 1.

summary

This bill allocates 25% of the gross sales and excise tax revenue generated by adult use marijuana establishments in the State to the municipalities where the revenue was generated and makes a reduction to the amount deposited in the Adult Use Marijuana Public Health and Safety Fund.

HP0260 LD 335	Session - 129th Maine Legislature		LR 890 Item 1
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