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An Act To Allow Municipalities To Apply a Local Option Sales Tax to the Sale of Marijuana
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §1818  is enacted to read:
§ 1818. Municipal local option sales tax on marijuana
 
1.  Definitions.     As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
 
A.  "Participating municipality" means a municipality that has imposed a local option sales tax pursuant to this section.
 
2.  Authorization to impose local option sales tax on marijuana.     Notwithstanding section 1817, subsection 2, a municipality that approves the location of a retail marijuana store or a retail marijuana social club within the municipality under Title 7, section 2449 may impose a local option sales tax on retail marijuana or retail marijuana products subject to tax under section 1817.
 
3.  Notify State Tax Assessor.     A municipality that imposes a local option sales tax under subsection 2 shall notify the State Tax Assessor at least 90 days before the local option sales tax is effective.
 
4.  Administration.     A retail marijuana store or a retail marijuana social club in a participating municipality shall transfer the revenue from the local option sales tax under this section at the time and in the manner provided in section 1951-A for the transfer of state sales tax revenue. The tax is subject to the same enforcement provisions, interest, penalties and administrative actions as other taxes assessed under this Part.
 
5.  Distribution of revenue.     Each month, the State Tax Assessor shall identify the amount of revenue attributable to each participating municipality under this section, subtract the costs of administering this section and certify to the Treasurer of State the net amount due each participating municipality.
 
The Treasurer of State shall make monthly payments to the participating municipality of the net amount certified under this subsection.
 
For purposes of this subsection, "costs of administering this section" means the lesser of the actual cost to the assessor of administering this section and 2% of the total revenue generated by local option sales taxes.
 
SUMMARY
This bill allows a municipality that approves the location of a retail marijuana store or a retail marijuana social club to impose a local option sales tax. Revenue from the local option sales tax after deduction for the cost of state administration is distributed to the municipality.