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H178 • 2025

An Act establishing a local value added tax on cannabis cultivation sales

An Act establishing a local value added tax on cannabis cultivation sales

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Michael J. Soter
Last action
2026-05-11
Official status
Accompanied a study order, see H5396 (under House Rule 27)
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

An Act establishing a local value added tax on cannabis cultivation sales

An Act establishing a local value added tax on cannabis cultivation sales By Representative Soter of Bellingham, a petition (accompanied by bill, House, No.

What This Bill Does

  • An Act establishing a local value added tax on cannabis cultivation sales By Representative Soter of Bellingham, a petition (accompanied by bill, House, No.
  • 178) of Michael J.
  • Soter for legislation to establish a local value added tax on cannabis cultivation sales.
  • Cannabis Policy.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-05-11 House

    Accompanied a study order, see H5396 (under House Rule 27)

  2. 2025-06-13 Joint

    Hearing scheduled for 06/17/2025 from 10:00 AM-01:00 PM in B-1

  3. 2025-02-27 House

    Referred to the committee on Cannabis Policy

  4. 2025-02-27 Senate

    Senate concurred

  5. House

    Reported by committee to Clerk’s Office for processing, will accompany a study order

Official Summary Text

An Act establishing a local value added tax on cannabis cultivation sales
By Representative Soter of Bellingham, a petition (accompanied by bill, House, No. 178) of Michael J. Soter for legislation to establish a local value added tax on cannabis cultivation sales. Cannabis Policy.

Current Bill Text

Read the full stored bill text 
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Bill H.178

SECTION 1. Chapter 94G of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by striking out subsection (d) of section 3 in its entirety and inserting in its place thereof the following:-

(d) No municipality shall require a host community agreement (HCA) as a condition for the licensing, operation, or approval of any cannabis cultivation establishment within its jurisdiction. Cannabis cultivators shall be subject to all applicable state laws and regulations but shall not be required to enter into separate agreements with municipalities beyond the requirements of state law.

SECTION 2. Chapter 64H of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by inserting the following:-

Section 6B. Local Value Added Tax on Cannabis Cultivation Sales

(a) In addition to the state sales tax imposed under section 2 of chapter 64H, there shall be an additional local value added tax (VAT) of 1% on the sale of completed cannabis goods by a licensed cannabis cultivation facility to licensed cannabis retailers in any municipality within the commonwealth. The tax shall be calculated based on the value added to the goods during the cultivation process.

(b) The local value added tax shall be collected by the cultivator at the point of sale or transfer of completed goods and remitted to the department of revenue, which shall distribute the funds to the appropriate municipality.

(c) The 1% local VAT shall be in addition to any local sales tax and shall be applied to the value of completed cannabis products sold as adult-use cannabis products. Medical marijuana products shall be exempt.

SECTION 3. The department of revenue shall promulgate regulations regarding VAT collection and distribution within 90 days of the effective date of this act.

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