‘An Act To Require the State To Distribute 12 Percent of Adult Use Marijuana Retail Sales and Excise Tax Revenue to Generating Municipalities’
Amend the bill by striking out the title and substituting the following:
Amend the bill by striking out everything after the enacting clause and inserting the following:
‘Sec. 1. 28-B MRSA §407 is enacted to read:
§ 407. Revenue allocation to municipalities
1. Local Government Marijuana Revenue Fund established. To assist in offsetting negative effects on local resources of local regulation and enforcement of adult use marijuana laws, 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 2 and Title 36, section 1818, subsection 2.
3. Distribution of funds. The Treasurer of State shall distribute the balance in the fund on the 20th day of each month. Money in the fund must be distributed to each municipality that has authorized, pursuant to sections 401 and 403, a marijuana establishment within the municipality, in proportion to the ratio of revenues generated pursuant to section 1001 and Title 36, section 1811 by all marijuana establishments operating within the municipality to the revenues generated pursuant to section 1001 and Title 36, section 1811 by all marijuana establishments operating within the State.
4. Unorganized and deorganized areas. For purposes of municipal marijuana revenue distribution 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 A, §6, is repealed and the following enacted in its place: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 on the sale of adult use marijuana pursuant to this subchapter must be deposited into the General Fund, except that, on or before the last day of each month, the department shall transfer:
1. Adult Use Marijuana Public Health and Safety Fund. Twelve percent of the excise tax revenue reported to the department as due during the preceding month pursuant to this subchapter to the Adult Use Marijuana Public Health and Safety Fund established under section 1101; and
2. Local Government Marijuana Revenue Fund. Twelve percent of the excise tax revenue reported to the department as due during the preceding month into the Local Government Marijuana Revenue Fund established under section 407 calculated after the transfer pursuant to subsection 1 and after the subtraction of the costs of the department in administering this subsection. For the purposes of this subsection, "costs of the department in administering this subsection" means, for each month in the 12-month period after the effective date of this section, the actual and anticipated cost to the department of administering this subsection and, in all subsequent months, the previous month's actual cost of administering this subsection.
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, on or before the last day of each month, the State Controller shall transfer:
1. Adult Use Marijuana Public Health and Safety Fund. Twelve percent of the sales tax revenue reported to the State Tax Assessor as due during the preceding month pursuant to section 1811 to the Adult Use Marijuana Public Health and Safety Fund established under Title 28-B, section 1101; and
2. Local Government Marijuana Revenue Fund. Twelve percent of the sales tax revenue reported to the State Tax Assessor as due during the preceding month pursuant to section 1811 to the Local Government Marijuana Revenue Fund established under Title 28-B, section 407 calculated after the transfer pursuant to subsection 1 and after the subtraction of the costs of the State Tax Assessor in administering this subsection. For the purposes of this subsection, "costs of the State Tax Assessor in administering this subsection" means, for each month in the 12-month period after the effective date of this section, the actual and anticipated cost to the State Tax Assessor of administering this subsection and, in all subsequent months, the previous month's actual cost of administering this subsection.
Sec. 4. Appropriations and allocations. The following appropriations and allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Local Government Marijuana Revenue Fund N326
Initiative: Provides allocation to distribute funds to municipalities to assist in offsetting negative effects on local resources of local regulation and enforcement of adult use marijuana laws.
| OTHER SPECIAL REVENUE FUNDS | 2019-20 | 2020-21 |
|
All Other
|
$484,000 | $1,848,000 |
 |
|
|
| OTHER SPECIAL REVENUE FUNDS TOTAL | $484,000 | $1,848,000 |
Revenue Services, Bureau of 0002
Initiative: Establishes one Senior Tax Examiner position to process transfers of sales and excise tax receipts on adult use marijuana.
| GENERAL FUND | 2019-20 | 2020-21 |
|
POSITIONS - LEGISLATIVE COUNT
|
1.000 | 1.000 |
|
Personal Services
|
$78,520 | $104,600 |
|
All Other
|
$5,000 | $0 |
|
|
|
| GENERAL FUND TOTAL | $83,520 | $104,600 |
| ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF | ||
| DEPARTMENT TOTALS | 2019-20 | 2020-21 |
|
GENERAL FUND
|
$83,520 | $104,600 |
|
OTHER SPECIAL REVENUE FUNDS
|
$484,000 | $1,848,000 |
|
|
|
| DEPARTMENT TOTAL - ALL FUNDS | $567,520 | $1,952,600 |
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.
summary
This amendment changes from 25% to 12% the amount of sales tax and excise tax revenue generated by adult use marijuana establishments required to be transferred to the municipalities where the revenue was generated after the transfer to the Adult Use Marijuana Public Health and Safety Fund and the deduction of state administrative costs.
The amendment also adds an appropriations and allocations section.
FISCAL NOTE REQUIRED
(See attached)