ME LD1869

Municipalities may impose a local option sales tax of up to 1% on adult use cannabis and cannabis products, subject to voter approval by referendum

Revenue must be deposited in a special municipal account and can only be spent on public safety and education initiatives

The State Tax Assessor administers collection, deducting administrative costs (capped at 2% of total revenue) before distributing monthly payments to participating municipalities

Local option sales tax revenue does not affect state revenue sharing calculations or reduce other state aid to municipalities for schools, roads, or jails

The tax takes effect 120 days after referendum approval, requiring majority support and turnout of at least 20% of the most recent gubernatorial election vote total