Sales taxes on the purchase of adult-use cannabis products rose nearly 30 percent on January 1, as new legislation took effect.
Under the new tax law, which lawmakers approved last year, consumers must pay a 14 percent sales tax on adult-use marijuana products (up from 10 percent). Medical cannabis products are subject to lower taxes.
Democratic Gov. Janet Mills had initially proposed the sales tax hike to address the state’s budget deficit.
Separate provisions in the tax bill, however, reduce certain excise taxes imposed upon cannabis cultivators, which may result in lower retail prices for consumers.
Maine is one of several states, including Maryland, Michigan, and Minnesota, where lawmakers last year voted to increase cannabis-related sales taxes. (Michigan’s tax increase is being challenged in court.) By contrast, in October, a legislative effort led by California NORML successfully rolled back marijuana-related taxes in that state.
NORML opposes excessive taxes on retail cannabis goods because they escalate prices out of reach for some consumers. “Excessive taxes drive a growing percentage of consumers to the unregulated market, thereby undermining the primary goal of legalization, which is to provide adults with safe, affordable, above-ground access to lab-tested products of known purity, potency, and quality,” NORML’s Deputy Director Paul Armentano said. “Tax increases also hurt state-licensed businesses and their employees because they increase their costs and reduce their customer base.”
