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Chris Beaulier is the director of retail operations at Cigaret Shopper in Hampden.
As the director of retail operations for Cigaret Shopper’s 23 locations in Maine, I take great pride in providing specialized services and quality products for my community. Our stores cater to adults who trust us for their tobacco and nicotine products at reasonable prices, and over the years, we’ve built strong relationships with our customers. That’s why I believe Gov. Janet Mills’ proposal to increase the tax on cigarettes by $1 per pack, along with raising taxes on smokeless nicotine products for adults like dip, vapes, and nicotine pouches, is not only misguided but also harmful to our economy and communities.
A $1 increase in the tax on cigarettes — raising the total tax rate to $3 per pack — is a heavy burden on a small segment of Maine’s population that is already struggling with rising costs, just like everyone else. The hard-working adults who purchase cigarettes do so as a personal choice, and this tax hike only adds to their financial strain.
With this sharp increase, Maine’s tax rate will surpass neighboring New Hampshire, where the cigarette tax is only $1.78 per pack. As a result, Maine businesses would likely face a significant disadvantage, as customers are likely to head across the border to buy cheaper cigarettes, further eroding our already thin margins.
To put this proposed tax increase into perspective, while Maine workers may see modest wage growth of around 3 to 4 percent, Mills asks smokers to absorb a tax hike up to 10 times higher than their wage increase on just one product. This isn’t just an inconvenience for adult smokers, it’s a serious financial burden. It also puts local businesses in a difficult position to remain competitive while dealing with these rising costs.
Gov. Mills hasn’t just proposed a tax increase on cigarettes. She also proposes to raise taxes on smokeless nicotine products, further eroding Mainers’ purchasing power. A proposed increase of $1.01 per ounce on dip, along with a 22 percent tax hike on vapes and nicotine pouches, brings their tax rate to 65 percent of the cost of the product. This dramatic increase will make an already difficult situation even worse. Consumers who use these products will face serious financial pressure.
This tax increase won’t necessarily stop people from smoking or using smokeless nicotine products, nor will it solve the state’s budget challenges. It’s likely to push adult smokers and nicotine users across the border to New Hampshire, where nicotine products remain cheaper.
Maine businesses like mine would lose out on sales, and the state would lose critical tax revenue. I see it as a lose-lose-lose proposal: adult smokers and smokeless nicotine users would either face higher costs or drive out of state, businesses would lose customers, and the state would be left with a net decline in tax revenue.
Moreover, this tax hike could have unintended consequences. As prices rise, some individuals may turn to illicit methods, like theft, to obtain cigarettes and smokeless nicotine products. We’ve seen this in other states with high cigarette taxes, like New York, which has created a “cigarette-smuggling empire” for criminals thanks to New York having the highest taxes on cigarettes in the nation. Increased theft poses risks to business owners and employees, with potentially dangerous confrontations. These aren’t hypothetical risks, they are real concerns that the Maine Legislature must consider.
Raising taxes on cigarettes and smokeless nicotine products is not the solution to Maine’s budget challenges. Instead, we should explore other revenue options that don’t penalize hard-working Mainers or threaten local businesses. I urge the Legislature to reject Mills’ proposal and consider policies that foster growth, protect businesses, and support Maine’s economy.