Legislative Document No. 1322 H.P. 957 House of Representatives, March 19, 2019
An Act To Provide Equitable Tax Treatment to State-licensed Marijuana Businesses
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT Clerk
Presented by Representative JORGENSEN of Portland. Cosponsored by Senator CHIPMAN of Cumberland and Representatives: BICKFORD of Auburn, HUBBELL of Bar Harbor, MAREAN of Hollis, PIERCE of Falmouth.
Printed on recycled paper 1 Be it enacted by the People of the State of Maine as follows:
2 Sec. 1. 36 MRSA §5122, sub-§1, ¶LL, as enacted by PL 2017, c. 474, Pt. C, §2, 3 is amended to read: 4 LL. An amount equal to the net operating loss carry-forward claimed as a deduction 5 under the Code, Section 172 in determining federal taxable income for the taxable 6 year that was previously allowed as a deduction pursuant to subsection 2, paragraph 7 PP QQ. 8 Sec. 2. 36 MRSA §5122, sub-§2, ¶PP, as enacted by PL 2017, c. 452, §31, is 9 repealed and the following enacted in its place: 10 PP. For taxable years beginning on or after January 1, 2018, for business expenses 11 related to carrying on a trade or business as a registered caregiver, a registered 12 dispensary or a manufacturing facility, as defined in Title 22, section 2422, or a 13 marijuana establishment or testing facility, as defined in Title 28-B, section 102, an 14 amount equal to the deduction that would otherwise be allowable under this Part to 15 the extent that the deduction is disallowed under the Code, Section 280E. 16 Sec. 3. 36 MRSA §5122, sub-§2, ¶PP, as enacted by PL 2017, c. 474, Pt. C, §3, 17 is reallocated to 36 MRSA §5122, sub-§2, ¶QQ.
18 Sec. 4. 36 MRSA §5200-A, sub-§1, ¶DD, as enacted by PL 2017, c. 474, Pt. C, 19 §6, is amended to read: 20 DD. An amount equal to the net operating loss carry-forward claimed as a deduction 21 under the Code, Section 172 in determining federal taxable income for the taxable 22 year that was previously allowed as a deduction pursuant to subsection 2, paragraph 23 BB FF. 24 Sec. 5. 36 MRSA §5200-A, sub-§2, ¶BB, as enacted by PL 2017, c. 452, §32, is 25 repealed and the following enacted in its place: 26 BB. For taxable years beginning on or after January 1, 2018, for business expenses 27 related to carrying on a trade or business as a registered caregiver, a registered 28 dispensary or a manufacturing facility, as defined in Title 22, section 2422, or a 29 marijuana establishment or testing facility, as defined in Title 28-B, section 102, an 30 amount equal to the deduction that would otherwise be allowable under this Part to 31 the extent that the deduction is disallowed under the Code, Section 280E. 32 Sec. 6. 36 MRSA §5200-A, sub-§2, ¶BB, as enacted by PL 2017, c. 474, Pt. C, 33 §7, is reallocated to 36 MRSA §5200-A, sub-§2, ¶FF.
34 SUMMARY 35 This bill expands the list of marijuana businesses that are licensed by the State and 36 are eligible to take deductions otherwise allowed under the state income tax laws to 37 include adult use marijuana establishments and testing facilities and medical marijuana 38 manufacturing facilities. This bill also corrects 2 lettering conflicts created when 2
Page 1 - 129LR1348(01)-1 1 separate public laws enacted new paragraphs with the same letter designations by 2 reallocating the later enacted versions.
Page 2 - 129LR1348(01)-1