Maine Towns is pushing to achieve a reduction in cannabist tax revenue

Maine's leisure kannabism market has brought in millions in the millions, but the local communities still have to see none of it. A new invoice, LD 347, aims to change this by giving the cities part of the tax revenues that are achieved by cannabis sales in their jurisdiction.

The fight for cannabis income

Since the start of the cannabis market for adults in 2020, Maine has collected significant income from sales and consumption taxes. Despite the host and cultivation bodies, the municipalities have not received a share in the profits. Many local officials argue that the organization of cannabis companies does additional costs, including public security, enforcing zoning and infrastructure requirements.

The legislators of the state are now considering LD 347, which would present 12% of sales tax revenue and consumption tax revenue from the turnover of leisure kannabis. The funds would be distributed to a new Cannabis Revenue Fund of the local government, which would then assign money to the cities that have decided to enable cannabi companies.

Why cities want their share

Municipalities that enable cannabis companies to take over regulatory stress that others do not do. The city officials have urged some of the tax revenue to support law enforcement authorities, street maintenance and other local services in the industry.

“We see the income and know that cannabis companies contribute to the state's economy,” said a city official. “It only makes sense that part of this money goes back to the cities that have made this industry possible.”

What's next?

If it is adopted, LD 347 would mark an important political shift, which offers the municipalities financial support in order to compensate for the costs of regulating and supporting the cannabis industry. Followers argue that a fair share of sales will encourage more cities to take part in the regulated market and ultimately strengthen the Cannabis economy of Maine.

The bigger picture

Other states with legal cannabis markets have implemented similar sales participation models. The supporters in Maine say that the state should follow the example to ensure a more fairer system for cities that cannabis companies have adopted.