Gov. Janet Mills (D) signed the $320 million supplemental budget into law Monday that contains a number of increased taxes and fees for Mainers, including on tobacco, streaming services, high-value real estate transactions, hunting licenses and fishing licenses, concealed carry permits, and others.
Although the governor had originally proposed a handful of other new fees in her initial draft of the budget, these were ultimately removed before the bill took its final form.
Among the now-removed fees were a proposed 70 cent per prescription fee on pharmacy providers and a six percent fee on the net operating revenue of ambulance service providers.
The vast majority of the new “revenue raisers,” however, were ultimately included in the final, 357-page version of the budget signed by Gov. Mills on Monday.
Part E of the supplemental budget increases the tax on smokeless tobacco from $2.02 per ounce to $3.54 per ounce. The tax on a pack of 20 cigarettes was also raised from $2 to $3.50. The per cigarette fee rose from 15 cents to 17.5 cents. These increases will take effect beginning on January 5, 2026.
A number of changes were made to cannabis excise and sales taxes under Part F of the budget, including by increasing the sales tax on adult use cannabis from 10 percent to 14 percent.
Accompanying this, however, were several reductions to cannabis-related excise 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, immature cannabis plants or seedlings sold from $1.50 each to $1 each, mature cannabis plants sold from $35 to $23, and cannabis seeds sold from 30 cents each to 20 cents each.
A new 5.5 percent tax on streaming service subscriptions was imposed under Part G of the supplemental budget. Although the governor proposed this same tax last year, lawmakers at the time decided against advancing it. This year, however, the tax made the legislature’s final cut.
Alongside this new tax, the six percent service provider tax was decreased to 5.5 percent.
[RELATED: Live in Maine? Your Streaming Service Subscriptions May Soon Be Subject to a New Tax]
Under Part T of the supplemental budget, the fee to renew or obtain an annual arborist license increases from $75 to $180.
Manufacturers or wholesalers of paint in Maine are required under Part RR of the budget legislation to pay a higher per gallon fee on the product sold, with proceeds going toward the Lead Poisoning Prevention Fund, more specifically, the per gallon fee will increase from 25 cents to 75 cents.
Part NNN of the budget raises the cost of a number of hunting and fishing licenses for both residents and non-residents by $5 across the board.
The cost of a resident combination hunting and fishing license, as well as a combination archery hunting and fishing license, will rise from $43 to $48. A resident fishing licenses would also increase from $25 to $30.
The price of nonresident combination hunting and fishing license will increase from $150 to $169.
The fee for a super pack license will go from $207 to $212 for residents and from $182 to $187 for those holding two or more lifetime licenses.
Costs for a number of other shorter-term hunting and fishing licenses will also increase by $7 under this budget.
Part VVV of this budget will also raise the cost associated with applying for or renewing a concealed carry permit for a handgun. As of now, the application fee for a new permit is $35, while the cost of a renewal is $20. These costs will now rise to $50 and $35 respectively.
Click Here to Read the Full 357-Page Budget
“Earlier this year, I proposed a balanced, fiscally responsible budget that prioritized keeping the State’s key promises to Maine people,” said Mills in a statement Monday
“At the same time, with so much uncertainty coming from Washington, and so much uncertainty in our economy, maintaining fiscal restraint has never been more important,” she said. “The budget bill enacted by the Legislature, like all lawmaking, is the product of various tradeoffs and compromises.”
“Although I might not agree with every single provision, I appreciate the diligence and hard work of the Appropriations Committee to produce this bill, which makes important investments in Maine families, children, and seniors, our higher education institutions, housing, and more.”
