Maine Imposes 42% Tax Increase on Nicotine Pouches: The Price of Zyn is Soaring over 50%

Regulations by 2FIRSTS.ai
Aug.15.2024
Maine Imposes 42% Tax Increase on Nicotine Pouches: The Price of Zyn is Soaring over 50%
Maine nicotine pouch prices surge statewide as 42% tax extends to non-tobacco products, sparking controversy among lawmakers and retailers.

According to a report by The Mainewire on August 14th, the price of nicotine pouches in the state of Maine has begun to soar statewide as a 42% consumer tax has been expanded to these products.


This tax bill was passed strictly along party lines, with only Democratic state legislators voting in favor and all Republican state legislators present voting against.


The governor of the state, Janet Mills (a Democrat), allowed the measure to become law in April without her signature.


Starting this week, ZYN nicotine pouches and other non-tobacco nicotine products will be subjected to an increase in wholesale taxes of up to 42%, a cost increase that has already impacted convenience stores within the state.


A gas station convenience store, Nouria, has announced that they will now be forced to increase the price of a box of ZYN nicotine pouches from $5.59 to $8.49 overnight, representing a 51.87% price hike.


The company is comforted by the fact that similar taxes have already been imposed on these products in New Hampshire, and Massachusetts has banned flavored nicotine products, which means loyal ZYN users are likely to continue purchasing in stores in Maine because they have no better alternatives.


Previously, according to Maine state tax law, Zyn and other nicotine salt-based products were not considered tobacco products because they do not contain any tobacco.


However, at a recent legislative meeting, State Senator Nicole Grohoski proposed amending Maine state laws to extend the existing tobacco tax to non-tobacco products.


The senator's bill redefines the concept of tobacco products to include all products containing nicotine; however, it is currently unclear if the new tax law also applies to smoking cessation products, such as nicotine gum or nicotine patches, which also seem to fit this definition.


According to the fiscal note accompanying the bill, it is anticipated that the expansion of the tobacco tax will generate $978,000 in revenue in the 2024 fiscal year.


Over the next few years, the state government is expected to collect additional revenue of over 2.5 million US dollars.


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