Maine’s recreational cannabis market has brought in millions of dollars in tax revenue, but local municipalities have yet to see any of it. A new bill, LD 347, aims to change that by giving towns a portion of the tax revenue generated by cannabis sales within their jurisdictions.
The Fight for Cannabis Revenue
Since the adult-use cannabis market launched in 2020, Maine has collected substantial revenue from sales and excise taxes. However, despite hosting dispensaries and cultivation sites, municipalities have not received a share of the profits. Many local officials argue that hosting cannabis businesses comes with added costs, including public safety, zoning enforcement, and infrastructure needs.
State lawmakers are now considering LD 347, which would set aside 12% of both sales tax revenue and excise tax revenue from recreational cannabis sales. The funds would be distributed to a new Local Government Cannabis Revenue Fund, which would then allocate money to the towns that have opted to allow cannabis businesses.
Why Towns Want Their Share
Municipalities that allow cannabis businesses take on regulatory burdens that others do not. Town officials have been pushing for a portion of the tax revenue to support law enforcement, road maintenance, and other local services impacted by the industry.
“We see the revenue numbers and know that cannabis businesses are contributing to the state’s economy,” said one city official. “It only makes sense that some of that money comes back to the towns that made this industry possible.”
What’s Next?
If passed, LD 347 would mark a major policy shift, giving municipalities financial support to offset the costs of regulating and supporting the cannabis industry. Supporters argue that fair revenue sharing will incentivize more towns to participate in the regulated market, ultimately boosting Maine’s cannabis economy.
The Bigger Picture
Other states with legal cannabis markets have implemented similar revenue-sharing models. Advocates in Maine say the state should follow suit to ensure a fairer system for towns that have embraced cannabis businesses.
