Before issuing active licenses for adult use marijuana establishments, Maine’s Office of Marijuana Policy requires proof of any required tax registrations. This post provides answers to some frequently asked questions regarding the tax registration process, which is managed by Maine Revenue Services.
Q: How do I apply for a sales tax ID?
A: You may apply for your sales tax ID online here. Select “Sales & Use Tax” at the bottom of the page and click “Go.” The electronic application provides a quick and easy way to complete the registration process.
Q: If my business is vertically integrated, do I need a separate sales tax ID for each license?
A: Yes. Maine Revenue Services requires a separate Sales Tax Identification Number for each individually licensed cultivation facility, products manufacturing facility, and marijuana store. This also means that if your business holds licenses for more than one marijuana store, for example, each store requires a separate sales tax ID number.
Q: Which NAICS code do I select when registering for my sales tax ID?
A: At this time, electronic applications on the Maine Revenue Services (“MRS”) website have not been updated with new NAIC codes for the marijuana industry. For the purposes of submitting the Sales and Use Tax applications, MRS currently recommends using UNABLE TO CLASSIFY – INDIV PROPRIETOR (8888) if the business is operating under a social security number. If the business is operating under an EIN, the state agency recommends using UNCLASSIFIED –(UNABLE TO CLASSIFY) (999999). There will be another code requested toward the end of the application that will allow the applicant to specify exactly what their businesses are doing. The applicant can also leave MRS staff a message in the comments at the end of the application with specific details about their businesses and the reviewers will make sure the applications are processed correctly.
Q: How do I apply for the required marijuana excise tax registration for my cultivation facility?
A: At this time, it is only possible to apply for marijuana excise tax registrations using paper copies of the application materials. There is no mechanism yet to apply for the specific marijuana excise tax registration through an electronic platform. You will need to complete page 7 (section 1) & page 11 (section 8) in the registration application booklet, which you can find here.
Note that if you plan to have more than one cultivation facility, you will need a separate excise tax ID for each facility. In Maine, an individual or entity may have an interest in up to three (3) adult use marijuana cultivation facilities, not to exceed 30,000 square feet of flowering plant canopy under the combined licenses.
Q: Do I need any other tax registrations in order to engage in wholesale transactions?
A: Yes. If the licensed entity intends to wholesale marijuana and/or marijuana products you will need a resale certificate as well. The resale certificate is obtained through the sales tax ID registration process. If you indicate on your registration materials that you anticipate $3,000 or more in gross sales over the next year, you will automatically receive a resale certificate in the mail along with your sales tax ID registration materials.
If you have additional questions about the tax registration process, please contact a member of Drummond Woodsum’s Licensing and Regulatory Compliance division.