During an 8-hour session on Tuesday this week, lawmakers from the state of Maine proposed a 20% tax on recreational marijuana. The rate includes a 10% wholesale tax, or excise tax, and a 10% sales tax. This is how the state of Massachusetts has it set.

“A 20 percent tax rate is low enough to compete with the illicit market, and it keeps us competitive with Massachusetts,” said David Boyer of Maine Marijuana Policy Project. “Municipalities should get a share of the tax revenue that comes with regulating legal marijuana businesses.”

The Marijuana legalization committee also proposed to have 5% of all state taxes go towards hosting communities.

Maine voters had not approved a tax rate this high when they passed the recreational marijuana ballot question this past November. Some members of the committee even call for a higher tax rate.

With a 20% overall tax, the recreational marijuana industry could make a minimum of $21 million in its first full year of operation.

The committee is expected to meet again on Aug. 4 to continue working on the regulations.

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