New Massachusetts Report on Increased Illegal Tobacco Seizures Should Serve as a Warning to Maine

Could Maine become the site of a radical uptick in black market tobacco sales? If the experience of a nearby state that got regulation wrong is any example, it certainly could. In addition to that, increased Maine taxes on tobacco products will likely drive sales across state lines, and hurt local businesses.

The Massachusetts Multi-Agency Illegal Tobacco Task Force recently released its annual report which shows a nearly 21,000% increase in illegal tobacco product seizures following Massachusetts’ implementation of high tobacco taxes and a comprehensive flavored tobacco sales ban: not a 21% increase in illegal tobacco seizures, but an alarming 21,000% increase. This incredibly high rate of tobacco-related crime demands immediate attention from policymakers across the Northeast and beyond.

The findings outlined in the report paint a clear picture: Massachusetts’ well-intentioned but fundamentally flawed policies have inadvertently established the state as a thriving hub for black-market tobacco products. In just one year, vape seizures soared from 1,326 units to an astounding 279,432. This unprecedented surge is an alarming indicator that excessively prohibitive measures are not deterring consumption but are instead pushing products underground, creating a lucrative opportunity for criminal enterprises.

The fiscal ramifications of such policies are severe. Massachusetts has forfeited nearly $240 million in excise tax revenue since 2018, revenue desperately needed for critical state services. As the CEO of the Northeast Wholesalers Association, I’m deeply concerned by this lost revenue which not only hurts the state but undermines the stability and viability of legitimate businesses that employ thousands and responsibly contribute to local economies.

Consider the story of Byron Carver, owner of the Moosabec Variety in Jonesport, Maine. Like many small, independent businesses throughout the state, Byron relies heavily on the sale of tobacco products to keep his doors open. His business, strictly regulated and fully licensed, diligently follows all laws, checks IDs rigorously, pays substantial taxes and effectively prevents tobacco products from reaching minors. Byron’s establishment is more than just a convenience store—it is a cornerstone of the local community, providing essential goods and services, creating employment opportunities, and offering solid wages to local workers.

Yet Byron and countless others like him face enormous challenges from excessively burdensome regulations and skyrocketing taxes. These punitive measures, like Maine Governor Janet Mills’ proposed 1.00 per pack tax hike on cigarettes and 65% tax increase on e-cigs, snuff, nicotine pouches, and chew, push their customers across state lines where tobacco taxes are significantly lower. Take New Hampshire, for instance, where the tax on cigarettes is $1.78 per pack as opposed to Maine’s current $2.00 per pack tax. If Governor Mills has her way, then the tax will be $3.00 per pack. Byron’s customers will simply cross Maine’s borders, incentivized by the lower taxes.

Massachusetts’ experience serves as a stark warning to other jurisdictions contemplating similar prohibitive regulations. Such policies, although appealing in theory, do not alter or eliminate targeted behaviors; they merely conceal and complicate them. The inevitable outcomes include increased criminal activity, greater challenges for law enforcement, and substantial economic losses for the states and for businesses.

Governor Mills and policymakers throughout Maine and neighboring states should heed Massachusetts’ cautionary tale. Effective tobacco policy must balance public health objectives with economic realities, avoiding overly punitive measures that inadvertently empower illegal operations.

Rather than imposing burdensome taxes and regulations that harm local businesses and drive revenue across state borders and to the illicit market, lawmakers should support businesses like Byron Carver’s, which serve as vital community hubs and economic engines. Thoughtful and balanced regulations, rather than draconian measures, offer the best way to protect public health and economic integrity.

V.J. Mayor is the CEO of the Northeast Wholesalers Association (NEWA), which is a regional trade association representing the interests of corporations and individuals involved in the manufacturing, sales, and distribution of convenience products.