An Act To Make Technical Changes to the Taxation of Marijuana
Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, state tax law needs to be updated before the 90-day period expires to avoid delay in the development of adult use marijuana rules, to allow the Legislature time to act on that rulemaking before it adjourns and to avoid delay in the processing of adult use marijuana establishment licenses; and
Whereas, legislative action is immediately necessary to ensure continued and efficient administration of state taxation of marijuana and state administration of adult use marijuana; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
PART A
Sec. A-1. 28-B MRSA §511, sub-§1, as enacted by PL 2017, c. 409, Pt. A, §6, is amended to read:
Sec. A-2. 36 MRSA §172, sub-§1, as amended by PL 2013, c. 368, Pt. V, §57, is further amended to read:
Sec. A-3. 36 MRSA §172, sub-§2, as amended by PL 1995, c. 65, Pt. A, §137 and affected by §153 and Pt. C, §15, is further amended to read:
Sec. A-4. 36 MRSA §172, sub-§3 is enacted to read:
Sec. A-5. 36 MRSA §1752, sub-§3-B, ¶¶F and G, as enacted by PL 2015, c. 267, Pt. OOOO, §2 and affected by §7, are amended to read:
(1) Soft drinks and powdered and liquid drink mixes except powdered milk, infant formula, coffee and tea;
(2) Sandwiches and salads;
(3) Supplemental meal items such as corn chips, potato chips, crisped vegetable or fruit chips, potato sticks, pork rinds, pretzels, crackers, popped popcorn, cheese sticks, cheese puffs and dips;
(4) Fruit bars, granola bars, trail mix, breakfast bars, rice cakes, popcorn cakes, bread sticks and dried sugared fruit;
(5) Nuts and seeds that have been processed or treated by salting, spicing, smoking, roasting or other means;
(6) Desserts and bakery items, including but not limited to doughnuts, cookies, muffins, dessert breads, pastries, croissants, cakes, pies, ice cream cones, ice cream, ice milk, frozen confections, frozen yogurt, sherbet, ready-to-eat pudding, gelatins and dessert sauces; and
(7) Meat sticks, meat jerky and meat bars.
As used in this paragraph, "without further preparation" does not include combining an item with a liquid or toasting, microwaving or otherwise heating or thawing a product for palatability rather than for the purpose of cooking the product . ; and
Sec. A-6. 36 MRSA §1752, sub-§3-B, ¶H is enacted to read:
Sec. A-7. 36 MRSA §1752, sub-§6-E is enacted to read:
Sec. A-8. 36 MRSA §1752, sub-§6-F is enacted to read:
Sec. A-9. 36 MRSA §1752, sub-§9-G is enacted to read:
Sec. A-10. 36 MRSA §1811, first ¶, as amended by PL 2017, c. 409, Pt. D, §2, is further amended to read:
A tax is imposed on the value of all tangible personal property, products transferred electronically and taxable services sold at retail in this State. The rate of tax is 7% on the value of liquor sold in licensed establishments as defined in Title 28-A, section 2, subsection 15, in accordance with Title 28-A, chapter 43; 7% on the value of rental of living quarters in any hotel, rooming house or tourist or trailer camp; 10% on the value of rental for a period of less than one year of an automobile, of a pickup truck or van with a gross vehicle weight of less than 26,000 pounds rented from a person primarily engaged in the business of renting automobiles or of a loaner vehicle that is provided other than to a motor vehicle dealer's service customers pursuant to a manufacturer's or dealer's warranty; 7% on the value of prepared food; and 5% on the value of all other tangible personal property and taxable services and products transferred electronically. Notwithstanding the other provisions of this section, from October 1, 2013 to December 31, 2015, the rate of tax is 8% on the value of rental of living quarters in any hotel, rooming house or tourist or trailer camp; 8% on the value of prepared food; 8% on the value of liquor sold in licensed establishments as defined in Title 28-A, section 2, subsection 15, in accordance with Title 28-A, chapter 43; and 5.5% on the value of all other tangible personal property and taxable services and products transferred electronically. Notwithstanding the other provisions of this section, beginning January 1, 2016, the rate of tax is 9% on the value of rental of living quarters in any hotel, rooming house or tourist or trailer camp; 8% on the value of prepared food; 8% on the value of liquor sold in licensed establishments as defined in Title 28-A, section 2, subsection 15, in accordance with Title 28-A, chapter 43; and 5.5% on the value of all other tangible personal property and taxable services and products transferred electronically. Notwithstanding the other provisions of this section, beginning on the first day of the calendar month in which adult use marijuana and adult use marijuana products may be sold in the State by a marijuana establishment licensed to conduct retail sales pursuant to Title 28-B, chapter 1, the rate of tax is 10% on the value of adult use marijuana and , adult use marijuana products and, if sold by a person to an individual who is not a qualifying patient, marijuana and marijuana products. Value is measured by the sale price, except as otherwise provided. The value of rental for a period of less than one year of an automobile or of a pickup truck or van with a gross vehicle weight of less than 26,000 pounds rented from a person primarily engaged in the business of renting automobiles is the total rental charged to the lessee and includes, but is not limited to, maintenance and service contracts, drop-off or pick-up fees, airport surcharges, mileage fees and any separately itemized charges on the rental agreement to recover the owner's estimated costs of the charges imposed by government authority for title fees, inspection fees, local excise tax and agent fees on all vehicles in its rental fleet registered in the State. All fees must be disclosed when an estimated quote is provided to the lessee.
PART B
Sec. B-1. 28-B MRSA §205, sub-§4, ¶A, as enacted by PL 2017, c. 409, Pt. A, §6, is amended to read:
(1) Pay the applicable license fee required pursuant to section 207;
(2) Submit a facility plan that specifies the location, size and layout of the marijuana establishment within the municipality or, in the case of a marijuana establishment to be located in the unorganized and deorganized areas, within the town, plantation or township in which the marijuana establishment will be located;
(3) If the application is for a license to operate a cultivation facility, submit updated operating and cultivation plans as required under section 302 based upon the actual premises to be licensed, except that, if no changes to the original operating and cultivation plans submitted by the applicant are necessary based upon the actual premises to be licensed, then the applicant may satisfy this requirement by resubmitting the original operating and cultivation plans and noting on those plans that no changes are necessary; and
(4) If the application is for any license except a license to operate a nursery cultivation testing facility, as described in section 301, subsection 5, or a marijuana store, register with the State Tax Assessor pursuant to Title 36, section 1754-B to collect and remit the sales tax on the sale of adult use marijuana and adult use marijuana products imposed under Title 36, section 1811 . ; and
(5) If the application is for a license to operate a cultivation facility, register with the State Tax Assessor pursuant to Title 36, section 4922 to collect and remit the excise tax on the sale of adult use marijuana imposed under Title 36, chapter 723.
Sec. B-2. 28-B MRSA §501, sub-§3, ¶C, as enacted by PL 2017, c. 409, Pt. A, §6, is amended to read:
Sec. B-3. 28-B MRSA §501, sub-§6, ¶B, as enacted by PL 2017, c. 409, Pt. A, §6 and amended by c. 452, §37, is further amended to read:
Sec. B-4. 28-B MRSA §501, sub-§9, as enacted by PL 2017, c. 409, Pt. A, §6, is amended to read:
Sec. B-5. 28-B MRSA c. 1, sub-c. 10, as amended, is repealed.
Sec. B-6. 28-B MRSA §1101, sub-§1, ¶A, as enacted by PL 2017, c. 409, Pt. A, §6, is amended to read:
Sec. B-7. 36 MRSA c. 723 is enacted to read:
CHAPTER 723
MARIJUANA EXCISE TAX
§ 4921. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
§ 4922. Registration
§ 4923. Excise tax imposed
Beginning on the first day of the calendar month in which adult use marijuana may be sold in the State by a cultivation facility under Title 28-B, chapter 1, an excise tax on adult use marijuana is imposed in accordance with this chapter.
§ 4924. Returns; payment of excise tax
On or before the 15th day of each month, a cultivation facility licensee shall file a return, as required by the assessor, and pay to the assessor all excise taxes due under this chapter for the preceding calendar month.
§ 4925. Application of excise tax revenue
All excise tax revenue collected by the assessor pursuant to this chapter on the sale of adult use marijuana must be deposited into the General Fund, except that, on or before the last day of each month, the assessor shall transfer 12% of the excise tax revenue received during the preceding month pursuant to this chapter to the Adult Use Marijuana Public Health and Safety Fund established in Title 28-B, section 1101.
Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.
summary
This bill does the following.
Part A:
1. Authorizes the Department of Administrative and Financial Services to deny, suspend or revoke an adult use marijuana establishment license for failure to cooperate with Maine Revenue Services in the payment of a final tax liability;
2. Aligns the record-keeping requirements imposed by the Maine Revised Statutes, Title 28-B with those of Title 36 by extending the record-keeping period in Title 28-B from 3 tax years to 6 tax years;
3. Excludes foods containing marijuana and marijuana products from the category of tax-exempt grocery staples; and
4. Imposes the 10% tax rate on adult use marijuana and marijuana products sold by marijuana establishments on all marijuana and marijuana products sold by any person to an individual who is not a qualifying patient.
Part B moves the adult use marijuana excise tax from Title 28-B to Title 36. In addition, Part B:
1. Requires that applicants for an adult use marijuana license, except a testing facility license, register with the State Tax Assessor to collect and remit sales tax, as is currently required by Title 36, as a condition for obtaining the license;
2. Requires cultivation facilities to register with the State Tax Assessor to collect and remit the adult use marijuana excise tax as a condition for receiving a cultivation facility license; imposes penalties on cultivation facilities that sell marijuana without registering with the State Tax Assessor; and allows for the suspension and revocation of the registration for failure to comply with the adult use marijuana excise tax laws;
3. Clarifies that the adult use marijuana excise tax is imposed when a person holding both a cultivation facility license and either a marijuana store license or products manufacturing facility license transfers marijuana from the cultivation facility to either the marijuana store or products manufacturing facility or otherwise undertakes an activity with the marijuana pursuant to the marijuana store license or products manufacturing facility license; and
4. Moves the adult use excise tax due date from the last day of the month to the 15th day of the month to coincide with the sales tax due date.