MARIJUANA TAX

M.G.L. pt. Part I, tit. Title IX, ch. c. 64N

in effect

M.G.L. c. 64N, § 1 Definitions

c. 64N, § 1. Definitions Section 1. Definitions. As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings: (a) ''Commissioner'', the commissioner of revenue. (b) ''Marijuana,'' ''Marijuana establishment,'' ''Marijuana product'' and ''Marijuana retailer'', as defined in chapter 94G of the General Laws. (c) ''Social equity business'', a marijuana retailer that is a social equity business, as defined in section 1 of chapter 94G.

M.G.L. c. 64N, § 2 State excise imposition; rate; payment

c. 64N, § 2. State excise imposition; rate; payment Section 2. State excise imposition; rate; payment. An excise tax is hereby imposed upon the sale of marijuana or marijuana products by a marijuana retailer to anyone other than a marijuana establishment at a rate of 10.75 per cent of the total sales price received by the marijuana retailer as a consideration for the sale of marijuana or marijuana products. The excise tax shall be levied in addition to state tax imposed upon the sale of property or services as provided in section 2 of chapter 64H of the General Laws and shall be paid by a marijuana retailer to the commissioner at the time provided for filing the return required by section 16 of chapter 62C of the General Laws.

M.G.L. c. 64N, § 3 Local tax option

c. 64N, § 3. Local tax option Section 3. (a) A city or town that accepts this section in the manner provided in section 4 of chapter 4 may impose a local sales tax upon sale or transfer of marijuana or marijuana products by a marijuana retailer operating within the city or town to anyone other than a marijuana establishment at a rate not greater than 3 per cent of the total sales price received by the marijuana retailer as a consideration for the sale of marijuana or marijuana products. The marijuana retailer shall pay the local sales tax imposed under this section to the commissioner at the same time and in the same manner as the sales tax due to the commonwealth. (b) All sums received by the commissioner under this section shall, at least quarterly, be distributed, credited and paid by the treasurer and receiver-general upon certification of the commissioner to each city or town that has accepted this section in proportion to the amount of the sums received in that city or town. Any city or town seeking to dispute the commissioner's calculation of its distribution under this subsection shall notify the commissioner, in writing, not later than 1 year from the date the tax was distributed by the commissioner to the city or town. (c) This section shall take effect in a city or town on the first day of the calendar quarter following 30 days after its acceptance by the city or town or on the first day of a later calendar quarter that the city or town may designate.

M.G.L. c. 64N, § 4 Exemptions

c. 64N, § 4. Exemptions [ Text of section effective until April 19, 2026. For text effective April 19, 2026, see below.] Section 4. Exemptions. This chapter shall not apply to the sale of marijuana or marijuana products by a medical marijuana treatment center or a registered personal caregiver to a qualifying patient or personal caregiver pursuant to chapter 369 of the acts of 2012, nor to any unlawful sale subject to taxation pursuant to chapter 64K of the General Laws. Chapter 64N: Section 4. Exemptions [ Text of section as amended by 2026, 65, Sec. 5 effective April 19, 2026. For text effective until April 19, 2026, see above.] Section 4. Exemptions. This chapter shall not apply to the sale of marijuana or marijuana products by a medical marijuana establishment as defined in section 1 of chapter 94I or a registered personal caregiver to a qualifying patient or personal caregiver pursuant to chapter 369 of the acts of 2012, nor to any unlawful sale subject to taxation pursuant to chapter 64K of the General Laws.

M.G.L. c. 64N, § 5 Application of tax revenue

c. 64N, § 5. Application of tax revenue Section 5. Application of tax revenue. The commissioner shall deposit revenue collected pursuant to this chapter, other than revenue collected pursuant to section 2 of chapter 64H of the General Laws, in the Marijuana Regulation Fund established by chapter 94G of the General Laws and it shall be subject to appropriation. Notwithstanding the previous paragraph, all monies received by the commonwealth equal to 1 per cent of the total sales price of the sale of marijuana or marijuana products from that portion of the excise imposed by section 2 from a marijuana retailer that is a social equity business, as defined in section 1 of chapter 94G, shall, not less than quarterly, be distributed, credited and paid by the state treasurer upon certification of the commissioner to each city or town that has at least 1 marijuana retailer that is a social equity business, in proportion to the amount of the sums received from the sale of marijuana or marijuana products by any such marijuana retailer in the city or town. Any city or town seeking to dispute the commissioner's calculation of its distribution under this paragraph shall notify the commissioner, in writing, not later than 1 year from the date the money was distributed by the commissioner to the city or town.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64NFetched: 10/20/2026