Maine Adopts Emergency Rule to Allow Wet Weight Conversion for Excise Tax

August 21st, 2020, Adult-use, State, Tax

See the press release below from Maine’s Office of Marijuana Policy:

Department of Administrative and Financial Services Engages in Rulemaking Related to Adult Use Marijuana Excise Tax

In response to an emerging preference in the use of “fresh frozen” marijuana in the extraction process, the Maine Department of Administrative and Financial Services (DAFS)—OMP’s parent organization—has engaged in emergency major substantive rulemaking related to the application of the excise tax on marijuana plants, flower, and trim.

The rulemaking establishes a 75 percent conversation rate for wet weight to dry weight—the same conversion rate used by the Maine Medical Use of Marijuana Act. Failure to appropriately account for water weight in the application of excise taxes of marijuana flower, marijuana trim and mature marijuana plants would otherwise result in taxes well in excess of the rates intended by the Legislature due to current statutory language, necessitating the introduction of a conversion factor.

The rule will be in effect for up to one year. DAFS intends to raise the wet weight issue with the next legislature.