Bill > LD1658

This bill increases the cigarette excise tax rate from 100 mills to 150 mills per cigarette (effectively raising the per-pack tax from $2 to $3) starting January 5, 2026, and simultaneously adjusts the tax on tobacco products to maintain an equivalent tax rate increase. The bill expands the definition of "tobacco products" to include synthetic nicotine-containing items and establishes a new mechanism to ensure the Fund for a Healthy Maine receives at least $65 million annually beginning in fiscal year 2027-28. Starting December 1, 2027, the State Controller and State Tax Assessor will annually calculate the necessary tax revenue transfer to meet this funding requirement, with any remaining tobacco and cigarette tax revenue being credited to the General Fund. The bill also includes provisions for how existing cigarette inventory will be taxed during the transition, such as requiring retailers to pay the difference in tax rates for cigarettes held in stock on the effective date and specifying how vending machine inventories will be handled. The tax rate changes apply to various tobacco products, including smokeless tobacco, with rates increasing proportionally to the cigarette tax change.

Health and Social Services

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1658&snum=132