LD 1028 – An Act To Prevent and Reduce Tobacco Use with Adequate Funding and by Raising the Tax on Tobacco Products

Summary: 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.

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