Tax & Accounting Blog

Maine Includes Medical Marijuana Brownies Under Prepared Food Rate

Indirect Tax, ONESOURCE, Sales and Use Tax December 1, 2011

When Maine first approved medical marijuana, it was decided that marijuana provided for medical purposes would be subject to the 5 percent state sales tax.  Now, lawmakers have issued an opinion that brownies including medicinal marijuana fall under the higher prepared food rate of 7 percent.  Opponents are upset, saying that medicine should not be taxed at all and that the brownie is simply a delivery method.  Current legislation does include medical marijuana as part of the medicine exemption and would take further legislation to change this.