The U.S. state of Maine has imposed a 42% excise tax on nicotine pouch products, causing the price of nicotine pouches, such as ZYN, to skyrocket across the state, with the price of ZYN increasing by 51.87%. The tax bill, which passed through partisan conflict, is estimated to bring in additional revenue to the state.
The US state of Maine has introduced a new tax law
As reported by The Mainewire on August 14, the price of nicotine pouches in Maine, USA, has begun to skyrocket across the state as a 42% excise tax has been extended to these goods.
This tax law is strictly partisan, with only Democratic state legislators voting yes and all Republican state legislators present voting no.
Gov. Janet Mills (a Democrat), allowed the measure to become law in April without her signature.
Prices have risen by more than 50%
Beginning this week, non-cigarette nicotine items such as ZYN nicotine pouches will be subject to a wholesale tax of up to 42 percent, which is already affecting convenience stores in the state.
One gas station store, Nouria, said they will now be forced to raise the price of a box of ZYN nicotine pouches from $5.59 to $8.49 overnight, a 51.87 percent increase.
To the comfort of businesses, New Hampshire has already imposed a similar tax on such products and Massachusetts has banned flavored nicotine products, making it likely that loyal ZYN customers will continue to buy from Maine stores for lack of a better option.
Previously, Zyn and other nicotine salt-based items were not considered cigarette products under Maine tax law because they did not contain any cigarettes.
However, during the recent legislative session, State Senator Nicole Grohoski (D-Maine) made changes to Maine law to extend the existing tobacco tax to smokeless goods.
The Senator’s bill redefines the concept of cigarette products to include all products containing nicotine. However, it is unclear whether the new tax law also applies to smoking cessation products, such as nicotine bubble gum or nicotine patches. Those products appear to fit that definition.
The tobacco tax expansion is expected to collect $978,000 in fiscal year 2024, according to fiscal information accompanying the bill.
Shortly, the state expects to collect more than $2.5 million in additional revenue.
