Several of the tax increases and changes included in Gov. Janet Mills’ (D) proposed biennial budget are set to have a public hearing on Monday, February 3.
Among the proposals up for discussion are increased taxes on cigarettes and other tobacco products, changes to the state’s cannabis taxes, and the imposition of a five and a half percent sales tax on streaming service subscriptions.
The public hearing is scheduled to begin at 1pm in State House Room 228. Testimony can also be submitted virtually at www.mainelegislature.org/testimony.
Earlier in the day, starting at around 11am, relevant state departments and agencies will offer their own testimony on these proposals.
Under Part E of Gov. Mills’ proposed budget legislation, the tax rate for cigarettes would be increased from ten cents to fifteen cents per cigarette as of January 5, 2026.
Similarly, the tax imposed on smokeless tobacco products would rise from $2.02 per ounce to $3.03, effective this same date.
The tax rate for all other tobacco products would rise as well under Mills’ proposal, increasing from 43 percent to 65 percent.
Part F of the proposed budget would see the tax imposed on cannabis products from 10 percent to 14 percent, as of January 1, 2026. That tax would only apply to adult-use recreational marijuana products.
Despite this increase, however, Mills’ suggested amendments would also result in a variety of reduced cannabis-related excises taxes.
For example, those with a cultivation facility license would see a smaller excise tax on the cannabis flower sold to other licensees, dropping from $335 per pound to $223 per pound.
Other excise tax reductions would include dropping the tax on sold cannabis trim from $94 per pound to $63 per pound, sold immature cannabis plants or seedlings from $1.50 each to $1 each, sold mature cannabis plants from $35 to $23, and sold cannabis seeds from 30 cents each to 20 cents each.
Under Part G, Mills proposed repealing the service provider tax of six percent, instead taxing them under the general sales tax, consequently reducing the rate from six percent to five and a half percent.
Services impacted by this change would include the provision of cable TV, as well as the transmission and distribution of electricity.
Much like the supplemental budget proposed by Mills during the previous legislative session, Part G of Mills’ proposed biennial budget would include a tax on streaming services.
Under the language put forward by Mills, “digital audio-visual and digital audio services” — defined as “the electronic transfer of digital audio-visual works and digital audio works to an end user with the right of less than permanent use granted by the seller, including when conditioned upon continued payment from the purchaser or a subscription” — would now be taxable at a rate of 5.5 percent.
Although cable TV premiums and the sale of digital media are currently taxed under state law, subscription-based streaming services have thus far been exempted.
[RELATED: Streaming Service Subscriptions May Soon Be Taxed in Maine]
The proposed tax on streaming services was removed by lawmakers last year before approving the final supplemental budget.
The Appropriations and Financial Affairs (AFA) Committee unanimously agreed to not include the proposed tax in the final version of the supplemental budget. Both the Democrat and Republican Committee reports were reflective of this decision.
[RELATED: Tax on Streaming Service Subscriptions Rejected by Maine Lawmakers]
On Tuesday evening, the governor delivered her 2025 State of the Budget address and was met with opposition from both Maine citizens and Republican lawmakers over the proposed spending and tax increases included in her budget.
In addition to the tax changes up for a public hearing Monday, Mills has also recommended increasing various fees and licensing costs.
Mills’ budget would also see new fees imposed on health care providers, including a 70 cent fee per prescription at pharmacies, a 6 percent fee on the net operating revenue of an ambulance service providers, and an unspecified fee for hospitals based on their number of inpatient beds, up to a total collection of $1.8 million annually.
Outside of the House chamber where the governor delivered her State of the Budget address Tuesday night, a crowd of Mainers gathered in protest these hikes.
Demonstrators told the Maine Wire that they had expected to be able to silently protest from the chamber’s upper gallery but found out they would not be able to do so when they arrived.
Unlike in prior years, the gallery was closed to the public during Tuesday’s State of the Budget Address.
[RELATED: Protestors Gather in Augusta for Gov. Janet Mills’ 2025 State of the Budget Address]
Unable to demonstrate during the governor’s speech, the protestors lined the hallway leading into the House chamber where both legislative leaders and the governor herself typically enter for the address.
Although many lawmakers did pass by the protest — where they were met with a chorus of boos and other shouts from the crowd — the governor did not.
Instead, Mills bypassed the demonstration, approaching the chamber via a door located directly next to to the House entrance.
Crowd welcomes Gov. Mills at the Maine State of the State! pic.twitter.com/uPfKtxJdr9
— The Maine Wire (@TheMaineWire) January 29, 2025
Republican lawmakers also spoke out Tuesday night against the proposed budget, as well as the message shared by the governor in her speech.
"She blamed everyone but herself for spending for six years."
— The Maine Wire (@TheMaineWire) January 29, 2025
Maine Republican lawmakers react to Governor Mills' State of the Budget Address. pic.twitter.com/8X5bR5aRNV
Janet Mills wants to tax your prescription, your ambulance services , your hospital,.
Read the article .
Janet Mills said last month that she wanted to lower Maines health and medical costs
Janet Mills is.a liar .
Janet Mills lies about everything .
That tax rebate Janet gave you for your new heat pump came from Joe Biden . He’s gone .
Next year Janet will start taxing your heat pump .
Catch 22
Only 1% of the control towers in America has meet it’s employment levels!
The DC tower was not fully staffed!
How is Portland and Bangor doing Governor?
One applicant for a controller’s job got a 100% on the test. He was not hired! Wrong skin color said Biden. How about that King, your airport. Think about Senator Sue!
Janet Janet Janet! You are not a good steward of Maine taxpayers’ money! Keep it simple and stop the STUPID STUPID STUPID ideological spending!
Think about necessities NOT YOUR FEELINGS.
It’s early in the year. Maybe people who work for a living should take a vacation day and go to Augusta.
I hope a good majority of we Mainers go to her public meeting and tell her exactly how we feel about her and all her new “taxes”.
When Trump’s pause on NGO funding takes effect. Maine budget will be a dumpster fire
I will purposely NOT go to Augusta to attend ANY hearings .
I don’t want to wind up in jail because of my potential behavior .
I don’t like these people . I did not vote for them .
I will never vote for them . I consider them enemies of the state .
I will pray for a change of direction in 2026 .
Ending the waste of hundreds? of millions on illegal aliens/bogus asylum seekers should produce a surplus for the benefit of American Citizens.
The true cost of bearing the burden of illegal alien/bogus asylum seeker welfare, crime, diseases, healthcare, education and other public services is being concealed by Communist Democrat government apparatchiks and their media toadies.
Gobankrates.com lists maine as having the 5th highest living wage requirement for a family of four in the US. Hawaii, Alaska, NY and Mass were the highest. Be sure to thank janet and her stooges running this state during the next election.
If there is no deficit spending , Janet Mills won’t be spending anything at all .
“ The highest living wage “ ….what the hell does that mean ?
Figures and numbers can be twisted and presented any of a hundred different ways .
Maine is out of money and running on fumes . THAT is the bottom line . Period .
Spin it any way you like .
Living wage. “A wage that is high enough to maintain a normal standard of living”.
You’re welcome.
Make it mean whatever you want. Remember when the democrats changed the requirements for a recession or when they changed the definition for gain of function? “I did not have sexual relations with that woman” good one.
The taxation on cannabis products is absolutely absurd. They don’t tax tomato or bean seeds, yet cannabis seeds and plants are hit with excessive levies. Even with proposed reductions—like lowering the tax on trim from $94 to $63 per pound or cutting seed taxes from 30 cents to 20 cents each—these rates remain unjustifiably high. It’s time to stop treating cannabis like a cash grab and start taxing it fairly, like any other agricultural product.
NORMAL STANDARD OF LIVING
W.T.F. Does Janet Mills and Your Website define as a “ Normal “ standard of living ….
That’s Great …..Now Augusta determines what is a normal standard of living .
Oh yeah I’m not liking this . This really authoritarian bullshit . This IS like 1984 .
Who’s standard of normal ? Who decides that ? The Democrats ?
So you’re telling me that the same people who want to offer free health care , free housing , free food , free education , free college , pretty much free everything , to a bunch of people who don’t look anything like , or have a cultural background even close to , that of the traditional Mainer , are going to decide for ME what’s normal ? I don’t think so dear .
I think you need a cup of herbal tea and a copy of cosmopolitan magazine .
You obviously don’t get what’s being discussed here ,
I just started 3 weeks ago this web income system that my friend recommended to me and I’ve gotten 2 checks for a total of $9,200… this is the best decision I made in a long time! This extra cash has changed my life in so many ways, v2 thank you!
Here is I started_______ Rebrand.ly/homejobs20?/03
No tax on illegal China wed?
“Firefighters arrived to find a well-developed fire involving a wind turbine.”
Does the Governor have $ set aside for any wildfires which start up as a result of a turbine fire? Free solar panels but who pays for their disposal and how much?
After WWI ended a couple of fellows told the Proletariat that their economy was great and that they should support the new Revolution for the betterment of society. One of the boys named Lenin called them the Useful Idiots. Janet Mills would have aligned with them like a hog on a slop pile.
No one wants to raise taxes but the democrats are hell bent on doing it. So in order for everyone to have skin on the game why not just raise the sales tax to 6%?
How could anyone vote for such a hideous creature ? Northern rural Maine needs to secede from the south……