Maine House Passes Bill Raising Marijuana Tax by 40% and Creating New Preroll Excise Tax

The Maine House of Representatives has approved a bill that would increase the state’s marijuana tax, impose a new excise tax on prerolls and expand certain tax rules to intoxicating hemp products.

House Bill 1942, sponsored by Representative Daniel Sayre (D) and cosponsored by Senator Bruce Bickford (R), was approved by the full House on March 26. The chamber adopted Committee Amendment A before voting to pass the measure to be engrossed and send it to the Senate. The House approved the measure by a vote of 89 to 55.

As amended, the proposal would raise Maine’s sales tax on adult-use marijuana and marijuana products from 10% to 14% beginning January 1, 2026, a 40% increase. It would also apply a 14% sales tax to “intoxicating hemp products” starting January 1, 2027.

In addition, the amended version would create a new excise tax specifically for prerolled marijuana cigarettes. Under the proposal, cultivation facility licensees would be required to pay an excise tax of $143 per pound, or fraction thereof, based on the combined weight of the marijuana flower and trim contained in prerolls sold to another licensed cannabis business in the state.

The amendment also changes when cultivation facilities must file and pay cannabis excise taxes. Through the end of 2026, returns would remain due by the 15th day of each month. Starting January 1, 2027, that deadline would shift to the last day of each month.

The bill was originally introduced as a broader tax overhaul affecting adult-use marijuana, hemp and hemp products, but the committee amendment replaced that language with a narrower version focused on intoxicating hemp products, prerolls and reporting deadlines. The proposal has now been sent to the Senate for consideration.