131st MAINE LEGISLATURE
		LD 1063		LR 242(05)
	An Act to Provide Equitable Tax Treatment to State-licensed Cannabis Businesses
	Fiscal Note for Bill as Engrossed with: C "A" (S-400) S "A" (S-470) to C "A" (S-400)
	Committee: Taxation
Fiscal Note
			FY 2023-24	FY 2024-25	Projections  FY 2025-26	Projections  FY 2026-27
Net Cost (Savings)
	General Fund		$1,202,612	$243,311	$109,077	$120,000
Appropriations/Allocations
	General Fund		$93,918	$123,845	$0	$0
Revenue
	General Fund		($1,140,000)	($1,444,000)	($1,691,000)	($1,900,000)
	Other Special Revenue Funds		($60,000)	($76,000)	($89,000)	($100,000)
Transfers
	General Fund		$31,306	$1,324,534	$1,581,923	$1,780,000
	Other Special Revenue Funds		($31,306)	($1,324,534)	($1,581,923)	($1,780,000)
Fiscal Detail and Notes
	This bill makes the income tax deduction for cannabis business expenses, currently available to registered caregivers and registered dispensaries, also available to cannabis establishments and testing facilities. It will decrease General Fund revenue by $1,140,000 in fiscal year 2023-24 and by $1,444,000 in fiscal year 2024-25 and decrease Local Government Fund revenue by $60,000 in fiscal year 2023-24 and $76,000 in fiscal year 2024-25.
	The bill includes one-time General Fund appropriations to the DAFS, Bureau of Revenue Services of $93,918 in fiscal year 2023-24 and $123,845 in fiscal year 2024-25 for a limited-period Tax Examiner position through June 7, 2025 to administer the income tax deductions for cannabis businesses.
	The bill requires that funds from the Adult Use Cannabis Public Health and Safety and Municipal Opt-in Fund (PHSMO) be transferred to the General Fund in June of each year to offset the revenue loss in the prior calendar year from the tax deduction for cannabis business expenses of cannabis establishments and testing facilities and to offset the cost of the limited-period Tax Examiner position in the Department of Administrative and Financial Services (DAFS), Bureau of Revenue Services in the prior calendar year. These transfers are estimated to be $31,306 in fiscal year 2023-24 and $1,324,534 in fiscal year 2024-25 from the PHSMO Other Special Revenue Funds account to the General Fund for these purposes. The PHSMO currently has sufficient funds for the transfer. However, other authorized expenditures from the PHSMO may increase to the point that sufficient funds are not available to offset the tax revenue loss and position cost.