Maine Governor Janet Mills Proposes Tobacco Tax Increase for Budget Balance

Jan.13.2025
Maine Governor Janet Mills Proposes Tobacco Tax Increase for Budget Balance
Maine Governor Janet Mills proposes raising tobacco taxes to balance budget, citing low cigarette tax and high smoking rates.

According to a report by Halfwheel on January 12, Governor Janet Mills of Maine has released her two-year budget proposal, suggesting increases to tobacco taxes to achieve a balanced budget.


Mills pointed out that Maine's cigarette tax has not been adjusted since 2005 and currently stands at just $2 per pack. She proposed raising it to $3 per pack. The governor stated that currently, Maine has the lowest cigarette tax in the New England region, while the smoking rates among adults and teenagers are the first and second highest, respectively. These are the reasons she is pushing for a tax increase.


According to state law, if the cigarette tax is adjusted, the tax rate for other tobacco products must also be increased accordingly. The tax rate for cigars will be raised from 43% of the wholesale selling price to 65%. This new tax rate will also apply to chewing tobacco, e-cigarettes, and other products made from or containing natural or artificial nicotine.


According to supporting documents for the Miller proposal, it is estimated that raising tobacco taxes will generate an additional revenue of approximately $80 million for the state general fund over the next two years.


If the proposal is passed according to the current plan, the tax rate adjustment will take effect on January 5, 2026.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Reynolds Puts Nearly 183,000 U.S. Contracted Outlets Under Age-Verification Rules, Covering 94% of Volume — Can It Shift an Unauthorized Vape Market?
Reynolds Puts Nearly 183,000 U.S. Contracted Outlets Under Age-Verification Rules, Covering 94% of Volume — Can It Shift an Unauthorized Vape Market?
Reynolds American says nearly 183,000 U.S. retail outlets are under contract, with its Retail Marketing Plan Contract covering about 94% of company volume and requiring point-of-sale age verification. The company combines those contracts with We Card, TruAge, NACS-linked infrastructure and POS integration, while enhanced Vuse Pro retail rules add ID scanning, purchase limits and stronger underage-sales accountability. The initial Vuse Pro rollout targets about 50,000 stores. The system is taking shape as unauthorized vapor products remain dominant in parts of the U.S. market: a 2026 study estimated they accounted for 69.4% of tracked brick-and-mortar e-cigarette dollar sales in December 2025.
Special Report
Oct.15
Special report|Indonesia's Vape Industry Has 200 Manufacturers and $1.7 Billion in Investment. Could a Regulatory Divide Derail Its Rise as the World's No. 2 Manufacturing Hub After Shenzhen?
Special report|Indonesia's Vape Industry Has 200 Manufacturers and $1.7 Billion in Investment. Could a Regulatory Divide Derail Its Rise as the World's No. 2 Manufacturing Hub After Shenzhen?
Indonesia's Ministry of Industry said at a November 3, 2026, policy forum that the country has about 200 electronic cigarette companies, Rp31 trillion (approximately $1.71 billion) in cumulative industry investment and around 100,000 jobs across the supply chain. The National Narcotics Agency is seeking a comprehensive ban on vape use and circulation, while the industry ministry favors tighter import, product-standard and distribution controls. Indonesia exported approximately $518 million in vaping products in 2025, and Chinese manufacturers including Smoore, GEEKVAPE and Jinjia Group have established local operations. An international logistics specialist interviewed by 2Firsts said more Chinese vape companies began production in Indonesia from the second half of 2025, accompanied by increased shipments of manufacturing equipment and investment in logistics facilities. The regulatory debate comes as Indonesia expands its role in international vaping manufacturing.
Special Report
Nov.05
Charlie’s Bets on Age-Gating and 678 PMTA Assets as U.S. Vape Enforcement Landscape Shifts
Charlie’s Bets on Age-Gating and 678 PMTA Assets as U.S. Vape Enforcement Landscape Shifts
Charlie’s Holdings said in its latest shareholder letter that it is moving to commercialize PACHA products and monetize its PMTA assets as the FDA changes enforcement priorities for unauthorized ENDS products. Thirty PACHA SKUs were previously tentatively identified for a proposed public list of products that the FDA generally does not intend to prioritize for enforcement. Charlie’s is also preparing test-market sales of age-gated flavored disposables and says it currently holds 678 PMTA-related product assets while seeking additional strategic transactions and partnerships.
Sep.11
Kumulus Vape2026 H1 Revenue Falls 8.3% but Profit Rises 24% as B2B Weakens and Consumer Channels Grow
Kumulus Vape2026 H1 Revenue Falls 8.3% but Profit Rises 24% as B2B Weakens and Consumer Channels Grow
French vaping company Kumulus Vape reported first-half 2026 revenue of €25.5 million, down 8.3% year over year, as its core B2B distribution business fell 11% to €21.6 million. B2C and store-network revenue rose 5.6% and 17.8%, respectively. Commercial margin increased to 26.3% from 21.7%, while net profit rose 24.1% to €0.8 million. The company attributed the profitability improvement to catalog optimization, logistics restructuring and the ramp-up of Labster, its in-house production unit for proprietary brands.
Market
Sep.17 by 2Firsts Perspectives
Altria Showcases Ploom, Marlboro Heated Tobacco Sticks and Non-Nicotine Energy Products at NACS Show 2026
Altria Showcases Ploom, Marlboro Heated Tobacco Sticks and Non-Nicotine Energy Products at NACS Show 2026
At the 2026 NACS Show, Altria displayed Ploom devices alongside imagery of Marlboro-branded heated tobacco sticks, while also featuring RIOT Energy and Proper Wild non-nicotine products. The booth showcased on! PLUS nicotine pouches, including 12 mg variants not listed among FDA-authorized products as of October 9, and NJOY e-cigarettes. Altria also presented convenience-store traffic figures highlighting its retail presence. 2Firsts examines the company's expanded product portfolio, non-nicotine business activities and the regulatory status of products displayed at the show.
EXPO
Oct.10
STIIIZY Redesign Fails to Escape PAX Labs Patent Import Ban as Section 337 Case Also Involves China ALD
STIIIZY Redesign Fails to Escape PAX Labs Patent Import Ban as Section 337 Case Also Involves China ALD
U.S. Customs and Border Protection ruled that STIIIZY had not shown that the redesigned cannabis-vape products covered by its latest request fall outside an ITC limited exclusion order tied to PAX Labs patents. CBP accepted some of STIIIZY’s claim-construction and non-infringement arguments, but the company did not address two additional claims in the same patent. Earlier STIIIZY redesigned cartridges and certain associated components imported with them had received separate CBP clearance.
Sep.16