Maine Considers Revenue Sharing for Cannabis Sales Tax

Maine's recreational cannabis market is poised for potential revenue sharing, as two bills have been introduced to distribute tax revenue to municipalities that permit recreational cannabis businesses. The proposed legislation aims to incentivize more towns to allow cannabis operations, with one bill suggesting a flat 10% share of the fund for all participating towns, while another proposes a 12% share based on sales revenue generated in each municipality. Meanwhile, Illinois reported record cannabis sales exceeding $2 billion in 2024, with significant tax revenue benefiting the state's economy, although officials caution about challenges from the unregulated hemp market. In Maryland, the legalization of recreational cannabis has spurred economic growth, with combined sales surpassing $1.1 billion in the first year, creating jobs and attracting new business opportunities. However, the cannabis industry's success in various states also highlights the ongoing challenge of balancing tax structures that can affect consumer preferences between legal and illegal markets. Advocates for legalization emphasize the need for reasonable tax rates to ensure the viability of the legal market and discourage consumers from reverting to illegal sources.