The price Mainers will pay for tobacco-free nicotine pouches, a popular alternative to chewing tobacco and cigarettes, has begun to soar statewide now that a 42 percent excise tax has been extended to the products.
The tax expansion passed the legislature on strictly partisan lines, with only Democratic state lawmakers voting in favor and all present Republican lawmakers voting against it.
Gov. Janet Mills (D) allowed the measure to become law without her signature in April.
Starting this week, Zyn pouches and other non-tobacco nicotine products will be subject to the massive 42 percent wholesale tax increase, a cost increase that is already hitting convenience stores in the state.
One common gas station store, Nouria, said that it will now be forced to increase the price of a can of Zyn from $5.59 all the way up to $8.49 overnight, which company employee said in an email will shock consumers.
The company took solace in the fact that New Hampshire already imposes a similar tax on the pouches, and Massachusetts has outlawed flavored nicotine products, making it likely that devoted Zyners will continue to find their fix in Maine’s stores, as they will have no better option.
Previously, Zyn and other nicotine salt-based products were not considered tobacco products under Maine tax law because they do not contain any tobacco.
In the most recent legislative session, however, Sen. Nicole Grohoski (D-Hancock) proposed changing Maine law to extend the existing tobacco tax to cover products that do not contain tobacco.
Grohoski’s bill redefines tobacco products to include anything that contains nicotine; however, it’s unclear whether the new tax expansion will also apply to smoking cessation products, like nicotine gum or nicotine patches, which also seem to meet the definition.
According to the fiscal note applied to the bill, the expansion of the tobacco tax is anticipated to collect $978,000 in FY 2024.
In future years, the state expects to collect more than $2.5 million in additional revenue.
Tobacco taxes are widely regarded as disproportionately impacting lower-income individuals, as surveys indicate tobacco use rates are negatively correlated with income.
