Maine weighs doubling state marijuana tax

AUGUSTA, Maine (AP) — As the legalization of recreational marijuana sales in Maine nears, a legislative panel has spent months pondering the best way to tax pot to bring in state revenue, fund regulatory enforcement and discourage the illicit market.

In November, legalization of recreational marijuana was approved. Possession of recreational marijuana became legal this year, while the Legislature pushed back the legalization until at least February.

The referendum included licensing fees as well as a 10 percent tax on sales by retail marijuana stores and social clubs.

"I think we'll definitely be increasing (the tax) to some level," said Democratic Rep. Teresa Pierce, co-chair of the Legislature's joint marijuana legalization implementation committee.

But nothing's been decided yet, said Pierce, who added there may be a special session in October for a vote on a final bill. Committee cochair Republican Sen. Roger Katz said the committee is meeting often and hopes to wrap up its work by September. The Legislature approved $200,000 for the committee and $1.4 million to the state for the costs of putting together marijuana regulations, including consultants.

Meanwhile, medical marijuana dispensaries and advo- cacy groups so far this year have reported spending more than $265,000 on lobbyists to sway officials. Legalize Maine has reported spending $32,000, while Maine Professionals for Regulating Marijuana has reported spending nearly $85,000.

The regulations will govern issues from the use of pesticides to growing for personal consumption, and the Legislature faces further votes on a bill to set up a system of labs to test marijuana. Pierce said that overall, the idea is to learn from states like Colorado.

"We are really trying to make sure we give opportunity for small grows to happen, so people who don't want to be big industrial marijuana producers can be in the market," Pierce said.

That could look like a market "almost akin to the craft beer market," she said.

One of the biggest issues ahead of lawmakers is deciding what the tax is, how it's structured and where the money will be directed.