Maine Legislature Approves Bill Raising Cannabis Tax to 14% and Adding New Pre-roll Excise Tax
- Maine lawmakers approved House Bill 1942 to raise the state’s adult-use marijuana sales tax from 10% to 14%, apply the same 14% sales tax to potentially intoxicating hemp products, and create a new excise tax on cannabis pre-rolls.
- The bill, sponsored by Representative Daniel Sayre and cosponsored by Senator Bruce Bickford, passed the House and Senate with amendments and has been sent to the governor for approval.
- The excise tax on cannabis pre-rolls will be based on the amount of marijuana flower or trim they contain and will also apply to pre-rolls infused with marijuana concentrate.
- The bill changes the excise tax filing deadline for cultivation facility licensees starting in 2027, and if signed, the adult-use marijuana tax increase takes effect in 2026, with hemp and pre-roll tax changes beginning in 2027.
Maine lawmakers have given final approval to legislation that would raise the state’s adult-use marijuana sales tax, apply the same rate to potentially intoxicating hemp products, and create a new excise tax structure for cannabis pre-rolls.
House Bill 1942, sponsored by Representative Daniel Sayre (D) and cosponsored by Senator Bruce Bickford (R), has now cleared both chambers and is being sent to the governor. The House originally passed the bill March 26 by a vote of 89 to 55, and the Senate later approved it 23 to 9 after adopting an additional amendment. The House then concurred with the Senate’s changes on April 7.
As finalized, the measure would raise Maine’s sales tax on adult-use marijuana and marijuana products from 10% to 14%, and it would impose a 14% sales tax on potentially intoxicating hemp products.
The bill would also impose an excise tax on cannabis pre-rolls, applying Maine’s existing marijuana excise tax based on the amount of marijuana flower or trim contained in each pre-roll. The tax would also apply to pre-rolls infused with marijuana concentrate.
The measure would also shift the deadline for cultivation facility licensees to 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 move to the last day of each month.
If signed into law, the tax increase on adult-use marijuana would take effect at the start of 2026, with the hemp tax and pre-roll excise changes taking effect one year later.