Maine: OMP Update – Adult Use Sample Collection Rulemaking/Metrc Best Practices, Precautions, and Reminders/ Important Tax Information for MMMP Registrants and AUMP Licensees + More

Public comments received during the rulemaking process led to a number of changes from the emergency to the routine technical rule including, without limitation, the following:

• The elimination of unlimited harvest and production batch sizes for the purposes of mandatory testing. Licensees will now be required to collect representative samples from harvest batches of no more than 10 kg of marijuana flower at one time; production batches of no more than 5 kg of marijuana concentrate at one time; and production batches of no more than 10,000 production units of marijuana products at one time.
• The elimination of the required use of a Department-developed Sample Collection Form. This requirement was replaced with sample collection, transfer and receipt record keeping requirements that can be satisfied using any format that can be produced for regulators upon demand.
• Refinement of the mandatory testing requirements for certain marijuana items.
  • For example, marijuana flower and trim that is “fresh frozen” will not be subject to mandatory testing for moisture content and water activity prior to transfer to a products manufacturing facility.
• Allowing marijuana testing facilities to pick up samples collected by self-sampling licensees at the licensee’s cultivation or manufacturing facility instead of requiring the licensee to deliver those samples to the marijuana testing facility’s licensed premises.

The revised rules will be published on the Secretary of State’s department rulemaking website and OMP’s adult use rules and statutes page on Friday. Until then, the existing emergency adopted rule remains in effect.

1. All transfers from a given Maine Medical Use of Marijuana Program (MMMP) registered caregiver or registered dispensary should be included within a single external transfer record within Metrc and should be recorded on the date of the actual transfer.
2. Both Metrc plant tags and package tags will be needed in order to complete the authorized transfer. If you’re preparing to receive an active license and haven’t already ordered your tags, do so as soon as possible.
3. Multiple seeds or plants can be included within a single package in Metrc. However, all items contained within a single package must be of the same strain, and all plants must be in the same stage of growth.
4. When recording the incoming transfer of mature plants, the recorded quantity should be expressed in pounds, rather than by plant count. All other transferred item quantities are recorded based upon count.

The Metrc and OMP teams are standing by to assist you should there be any questions.

• Contact: Metrc Support
• Guidance Document: Getting Started Guide: Metrc Inventory Tracking System

State of Maine Update

Effective immediately, OMP will begin requiring all current and future registered caregivers to provide an active Maine Revenue Services (MRS) sales tax registration number upon initial application or renewal.

Medical marijuana is subject to tax as tangible personal property in Maine. Every registered dispensary and registered caregiver transacting sales of medical marijuana is required to register with the State Tax Assessor as a seller and to collect and remit sales tax. Business to business transactions destined for resale to certified patients may be exempt from sales tax, provided the purchaser obtains a resale certificate from MRS and provides that information to the seller.

• View MRS Guidance Document: Business Guide for Sales, Use, and Service Provider Tax
• Register with MRS: Sales & Use, Withholding and Service Provider Tax Registration Service

Federal Update

The Internal Revenue Service (IRS) recently announced the availability of new resources for marijuana-related entities to comply with their federal tax obligations. Covering topics such as business tax deductions, paying your taxes with cash, and general income reporting, the IRS states that these resources are, “a key component in promoting the highest degree of voluntary compliance…”

MMMP registrants and Adult Use Marijuana Program (AUMP) licensees with questions about their tax obligations should consider contacting a qualified accountant.

• View IRS General Guidance: Marijuana Industry

• View OMP Guidance Documents: https://www.maine.gov/dafs/omp/resources/guidance-documents

Today, we issued another four active licenses, including the adult use program’s first product manufacturing facility.

• View the Dashboard: Adult Use Applicant and Licensee Search