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Maine to Tax Marijuana

1 min readBy: Justin Higginbottom

Maine will tax marijuana:

Included in the final catch-all taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. bill signed into law Friday by Gov. John Baldacci is a provision that taxes the sale of medical marijuana at state-sanctioned dispensaries.

“We wanted to make sure that it is taxed,” Rep. Thomas Watson, D-Bath, co-chairman of the Legislature’s Taxation Committee, told members of the Appropriations Committee in the final review of the tax bill on Wednesday. “It is one of the recommendations of Maine Revenue Service that we didn’t follow. They recommended it not be taxed, but the committee – all that were in the room, both parties – said it should be taxed.”

The decision is estimated to result in about $71,000 a year in additional sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. revenue. Sen. Richard Nass, R-Acton, said lawmakers on the committee rejected the Maine Revenue Service position that marijuana used for medical reasons was the same as a prescription drug.

More on marijuana taxation here and here.