New Sales Tax Guidance for Maine Marijuana Businesses

March 18th, 2021, Adult-use, State, Tax

On March 18, 2021 Maine Revenue Services published a Maine Tax Alert notifying Maine tax professionals about two amended Maine sales tax provisions that are effective as of March 15, 2021. Rule 301, “Sales for Resale and Sales of Packaging Materials” has been amended to reflect that MRS no longer issues provisional resale certificates, and to clarify that sales for resale are exclusions (not exemptions) to Maine sales tax law and thus do not require the collection of sales tax, so long as appropriate documentation is collected. Rule 302, “Sales to Governmental Agencies and Exempt Organizations” has been amended to clarify that MRS has authority to periodically review and revoke sales tax exemption certificates.

In addition, MRS noted that the Sales Tax Division has posted two bulletin updates to the MRS website, including an updated version of Bulletin No. 60 “Sales of Medical Marijuana and Related Products” and new Bulletin No. 61 “Sales of Adult Use Marijuana and Related Products”. The Bulletins provide guidance on Maine sales and use and service provider taxes to medical marijuana and adult use marijuana, respectively. Specifically, the updates to Bulletin No. 60 address the application of Maine’s service provider tax to manufacturing facilities that extract concentrates and that produce products using marijuana provided by, and then returned to, a customer.

If you have questions about the new guidance, please contact a member of our Licensing and Regulatory Compliance division.