PLEASE NOTE: Legislative Information cannot perform research, provide legal advice, or interpret Maine law. For legal assistance, please contact a qualified attorney.
An Act To Reduce the Burden of Tobacco-related Illness by Increasing Revenue from the Cigarette Tax for Use for Tobacco Cessation
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §4365-F, as enacted by PL 2005, c. 457, Pt. AA, §3 and affected by §8, is repealed.
Sec. 2.  36 MRSA §4365-G  is enacted to read:
§ 4365-G. Application of cigarette tax rate increase effective November 1, 2017
The following provisions apply to cigarettes held for resale on November 1, 2017.
 
1.  Stamped rate.     Cigarettes stamped at the rate of 100 mills per cigarette and held for resale after October 30, 2017 are subject to tax at the rate of 175 mills per cigarette.
 
2.  Liability.     A person possessing cigarettes for resale is liable for the difference between the tax rate of 175 mills per cigarette and the tax rate of 100 mills per cigarette in effect before November 1, 2017. Stamps indicating payment of the tax imposed by this section must be affixed to all packages of cigarettes held for resale as of November 1, 2017, except that cigarettes held in vending machines as of that date do not require that stamp.
 
3.  Vending machines.     Notwithstanding any other provision of this chapter, it is presumed that all cigarette vending machines are filled to capacity on November 1, 2017, and the tax imposed by this section must be reported on that basis. A credit against this inventory tax must be allowed for cigarettes stamped at the rate of 175 mills per cigarette placed in vending machines before November 1, 2017.
 
4.  Payment.     Payment of the tax imposed by this section must be made to the assessor by January 1, 2018, accompanied by forms prescribed by the assessor.
Sec. 3. 36 MRSA §4366-A, sub-§2, ¶D, as amended by PL 2007, c. 438, §93, is further amended to read:
 
D. For stamps at the face value of 100175 mills, the discount rate is 1.15%0.65%.
Sec. 4.  36 MRSA §4366-E  is enacted to read:
§ 4366-E. Additional tax
Beginning November 1, 2017, an additional tax is imposed on all cigarettes imported into this State or held in this State by any person for sale at the rate of 75 mills for each cigarette. The tax imposed under this section must be added to the tax imposed under section 4365 and collected and administered in the same manner as the tax under that section. Payment of the tax is evidenced by the affixing of stamps to the packages containing the cigarettes.
Sec. 5. Appropriations and allocations. The following appropriations and allocations are made.
 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS)
 
Maine Center for Disease Control and Prevention 0143
 
Initiative: Allocates funds for tobacco use prevention and cessation.

GENERAL FUND	2017-18	2018-19	
All Other	$8,100,000	$8,100,000	
			
GENERAL FUND TOTAL	$8,100,000	$8,100,000	

Medical Care - Payments to Providers 0147
 
Initiative: Allocates funds for tobacco use cessation medications and counseling provided to MaineCare members.

GENERAL FUND	2017-18	2018-19	
All Other	$1,000,000	$750,000	
			
GENERAL FUND TOTAL	$1,000,000	$750,000	

HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS)			
DEPARTMENT TOTALS	2017-18	2018-19	
			
GENERAL FUND	$9,100,000	$8,850,000	
			
DEPARTMENT TOTAL - ALL FUNDS	$9,100,000	$8,850,000	
 
Sec. 6. Effective date. This Act takes effect November 1, 2017.
 
SUMMARY
This bill increases the cigarette tax from $2.00 to $3.50 per pack of 20 cigarettes, beginning November 1, 2017. This bill also provides increased funding in the amount of $8,100,000 per year in ongoing funding to the Maine Centers for Disease Control and Prevention for tobacco use prevention and cessation in order to align with United States Department of Health and Human Services, Centers for Disease Control and Prevention recommendations. Finally, this bill provides $1,000,000 in fiscal year 2017-18 and $750,000 thereafter for MaineCare members for tobacco cessation medications and counseling.