Prevent and Reduce Tobacco Use with Adequate Funding and by Raising the Tax on Tobacco Products

Last updated: Jul 7, 2019

Details about this bill
Category: Taxation
Status: Passed
Sponsor: Representative Joyce "Jay" McCreight, House 51
Session: 129
Bill #: LD 1028



UPDATE 7/3/19: Governor Mills signed this bill into law. The new chaptered law is here.

UPDATE 6/20/19: This bill has been significantly amended in the middle of the night of the final day of session. It increases the wholesale tax on tobacco from 20% to 43%. It will raise $5.3 million in the first year and $9 million in FY '21.


This bill increases the cigarette tax from $2.00 to $3.50 per pack of 20 cigarettes and increases the tax on all other tobacco products including electronic cigarettes to 81% of the wholesale sales price, beginning November 1, 2019. The bill provides that, if the tax on cigarettes is increased on or after November 1, 2019, the tax on all other tobacco products will be adjusted by a rate that is equivalent to the percentage change in the tax rate for one cigarette. The bill provides ongoing funding, $11,100,000 per year, to the Department of Health and Human Services, Maine Center for Disease Control and Prevention for tobacco use prevention and cessation in order to align with the United States Department of Health and Human Services, Centers for Disease Control and Prevention recommendations. The bill also provides $1,000,000 in fiscal year 2019-20 and $750,000 thereafter for MaineCare members for tobacco use cessation medications and counseling. Finally, the bill provides $250,000 per year in ongoing funding to the Attorney General's office for increased tobacco enforcement activities.