This bill, beginning January 5, 2026, increases the cigarette excise tax rate by 50 mills, changing the rate per pack of 20 cigarettes from $2 to $3, and the rate per cigarette from
10¢ to 15¢. Under current law, when the cigarette tax increases, the tax on tobacco products also increases by an equivalent amount. The bill includes in the excise tax on tobacco products that equivalent increase and specifies that the definition of "tobacco products" includes products with synthetic nicotine. The bill also, beginning in fiscal year 2027-28, requires the State Tax Assessor and the State Controller to annually determine the amount of revenue from the taxes on cigarettes and tobacco products that is needed to ensure the Fund for a Healthy Maine receives at least $65,000,000 annually from all sources of revenue, including from the so-called tobacco settlement and from certain slot machine income.

Statutes affected:
Bill Text LD 1658, HP 1099: 22.1511, 36.4365, 36.4366, 36.4381, 36.4401, 36.4403