130th MAINE LEGISLATURE
		LD 830		LR 677(02)
	An Act To Restructure the Taxation of Adult Use Marijuana
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			FY 2021-22	FY 2022-23	Projections  FY 2023-24	Projections  FY 2024-25
Net Cost (Savings)
	General Fund		$444,088	$661,875	$1,085,000	$1,318,750
Appropriations/Allocations
	General Fund		$6,000	$0	$0	$0
Revenue
	General Fund		($438,088)	($661,875)	($1,085,000)	($1,318,750)
	Other Special Revenue Funds		$133,088	$661,875	$1,085,000	$1,318,750
Fiscal Detail and Notes
	The bill repeals the excise tax on marijuana and marijuana products and increases the sales tax from 10% to 20% effective January 1, 2022. The repeal of excise taxes would result in a decrease in General Fund revenue of $5,650,400 in fiscal year 2021-22 and $15,882,000 in fiscal year 2022-23.  The increase in the sales tax rate would result in additional General Fund revenue of $5,212,312 in fiscal year 2021-22 and $15,20,125 in fiscal year 2022-23.  The net impact of the repeal of the excise taxes and increase in sales tax rate would be a decrease in General Fund revenue of $438,088 and a decrease in Other Special Revenue Funds revenue of $36,600 in fiscal year 2021-22.   It would also result in an increase in Local Government Fund revenue of $169,688 in fiscal year 2021-22 and $661,875 in fiscal year 2022-23. The bill includes a one-time General Fund appropriation of $6,000 in fiscal year 2021-22 to the Department of Administrative and Financial Services for computer programming costs.