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H 4008

Impact fee

2025-2026 Regular Session Introduced by Terry Alexander and 13 co-sponsors

Allows Salem to raise its local marijuana sales tax from 3% to up to 6%; if above 3%, the city and retailers aren't required to negotiate a host community agreement.

Referred to Committee on Judiciary
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WeVote Research Nonpartisan
Bill Summary · H 4008

Summary — H 4008 (2025): Salem local option tax on retail marijuana sales

Main purpose

Authorize the City of Salem to increase its local option tax on retail sales of marijuana and marijuana products from the current 3% up to 6%, and to modify certain local host-community agreement obligations if the city adopts a tax above 3%.

Key provisions

  • Grants the City of Salem authority, by a majority vote of its City Council, to increase the local option excise tax on the retail sale of marijuana and marijuana products from 3% to as much as 6%.
    • The tax applies to retail sales by a marijuana retailer to anyone other than a marijuana establishment (i.e., retail sales to consumers).
  • If Salem increases the local option tax to an amount in excess of 3%, the city and its marijuana establishments are relieved of the obligation in Massachusetts General Laws chapter 94G, section 3(d) (and related rules or laws) to negotiate and execute a host community agreement (HCA) that sets conditions for having a marijuana establishment in the city.
  • The act takes effect upon passage.
  • The bill indicates local approval (petition accompanied by the approval of Salem’s mayor and city council).

Who would be affected

  • City of Salem: gains authority to raise municipal marijuana excise revenue up to an additional 3 percentage points.
  • Salem City Council: must vote by majority to enact any increase.
  • Marijuana retailers operating in Salem: would collect and remit the higher local option tax on retail consumer sales.
  • Consumers purchasing retail marijuana and products in Salem: could face a higher local excise rate (up to 6%).
  • Marijuana establishments and prospective operators in Salem: if the city adopts a tax above 3%, the city and existing/future marijuana establishments would not be required to negotiate/execute HCAs under the cited state law provision — potentially changing the local permitting/terms process.

Procedural status / timeline (from provided record)

  • Introduced and read first time: 2025-02-13
  • Referred to Committee on Judiciary: 2025-02-13
  • Referred to Committee on Revenue: 2025-04-07
  • Senate concurred: 2025-10-23
  • Local approval noted on the filing.

Fiscal/administrative note

  • The bill increases local taxing flexibility; no statewide fiscal estimate or projected revenue amounts are included in the text. The actual local revenue increase would depend on the final tax rate adopted (between 3% and 6%) and local marijuana sales volumes.

Important caveat

The packet you provided also contains unrelated draft legislation from South Carolina proposing a one-time developer impact fee and creation of a “South Carolina Gentrification Trust Fund.” That South Carolina draft is a separate matter and is not part of the Massachusetts H 4008 language described above.

Compiled from official sources — confirm details with the bill’s official record.

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