An Act To Reduce the Burden of Tobacco-related Illness by Increasing Revenue from the Cigarette Tax for Use for Tobacco Cessation
Maine Legislature, Session 128, LD 0945
Committee Amendment CA_A_H560 (House)
Amends: 36 MRSA §4365-F, 36 MRSA §4365-G, 36 MRSA §4366-A, 36 MRSA §4366-E

COMMITTEE AMENDMENT «ff» to H.P. 673, L.D. 945, Bill, "An Act To 
Reduce the Burden of Tobacco-related Illness by Increasing Revenue from the Cigarette 
Tax for Use for Tobacco Cessation" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §4365-F, as enacted by PL 2005, c. 457, Pt. AA, §3 and 
affected by §8, is repealed. 
Sec. 2. 36 MRSA §4365-G is enacted to read: 
§4365-G. Application of cigarette tax rate increase on or after November 1, 2017 
The following provisions apply to cigarettes held for resale on November 1, 2017 to 
November 1, 2021. 
1. Stamped rate. Cigarettes stamped at the rate that applies on October 31st of each 
year and held for resale after October 31st are subject to tax at the rate specified in this 
subsection on the immediately following November 1st, as follows: 
A. For cigarettes held on October 31, 2017, 115 mills per cigarette; 
B. For cigarettes held on October 31, 2018, 130 mills per cigarette; 
C. For cigarettes held on October 31, 2019, 145 mills per cigarette: 
D. For cigarettes held on October 31, 2020, 160 mills per cigarette; and 
E. For cigarettes held on October 31, 2021, 175 mills per cigarette. 
2. Liability. A person possessing cigarettes for resale is liable for the difference 
between the tax rate that applies October 31st and the tax rate that applies on the 
immediately following November 1st as provided in subsection 1. Stamps indicating 
payment of the tax imposed by this section must be affixed to all packages of cigarettes 
held for resale as of November 1st, except that cigarettes held in vending machines as of 
that date do not require that stamp. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"#" to H.P. 673, L.D. 945 
3. Vending machines. Notwithstanding any other provision of this chapter, it is 
presumed that all cigarette vending machines are filled to capacity on November 1st and 
the tax imposed by this section must be reported on that basis. A credit against this 
inventory tax must be allowed for cigarettes stamped at the rate that applies on November 
I st per cigarette placed in vending machines before November 1st. 
4. Payment. Payment of the tax imposed by this section must be made to the 
assessor by January 1st of the year after the increase, accompanied by forms prescribed 
by the assessor. 
Sec. 3. 36 MRSA §4366-A, sub-§2, ,in, as amended by PL 2007, c. 438, §93, is 
further amended to read: 
D. For stamps at the face value of 100 mills, the discount rate is 1.15%,; and 
Sec. 4. 36 MRSA §4366-A, sub-§2, ~ 
is enacted to read: 
E. For stamps sold at a face value exceeding 100 mills, the assessor shall calculate a 
discount value that is prop01tional to the discount value under paragraph D. 
Sec. 5. 36 MRSA §4366-E is enacted to read: 
§4366-E. Additional tax 
Beginning November 1, 2017, an additional tax is imposed on all cigarettes imported 
into this State or held in this State by any person for sale at the rate of 15 mills for each 
cigarette. The additional tax is increased to 30 mills on November 1, 2018, 45 mills on 
November 1, 2019, 60 mills on November 1, 2020 and 75 mills on November 1, 2021. 
The tax imposed under this section must be added to the tax imposed under section 4365 
and collected and administered in the same manner as the tax under that section. Payment 
of the tax is evidenced by the affixing of stamps to the packages containing the cigarettes. 
Revenue collected under this section must be deposited in a special account to be 
administered by the Depattment of Health and Human Services, Maine Center for 
Disease Control and Prevention for tobacco use prevention and cessation, 
Sec. 6. 
Appropriations and allocations. 
The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides funding to reflect an increase in the cigarette tax of 15 mills per 
cigarette annually until the total tax reaches 175 mills per cigarette on November 1, 2021. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2017-18 
$31,000 
$31,000 
COMMITTEE AMENDMENT 
2018-19 
$31,000 
$31,000 
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¢.:.· 
COMMITTEE AMENDMENT «t,: to H.P. 673, L.D. 945 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
2017-18 
2018-19 
$31,000 
$31,000 
$31,000 
$31,000 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS) 
Maine Center for Disease Control and Prevention 0143 
Initiative: Appropriates funds for tobacco use prevention and cessation. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY DHS) 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
SECTION TOTAL - ALL FUNDS 
2017-18 
$8,655,574 
$8,655,574 
2017-18 
$8,655,574 
$8,655,574 
2018-19 
$21,617,768 
$21,617,768 
2018-19 
$21,617 ,768 
$21,617,768 
2017-18 
2018-19 
$8,686,574 
$21,648,768 
$8,686,574 
$21,648,768 
SUMMARY 
This amendment phases in the increase in the cigarette tax by 15 mills per year until 
it reaches 175 mills on November 1, 2021 and provides that the revenue from the 
additional tax be deposited in a special account to be administered by the Department of 
Health and Human Services, Maine Center for Disease Control and Prevention for 
tobacco use prevention and cessation. 
COMMITTEE AMENDMENT 
I 
COMMITTEE AMENDMENT" ffto H.P. 673, L.D. 945 
This amendment also adjusts the appropriations and allocations to reflect the phasing 
in of the tax increase as proposed in the amendment. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/18/17 feac::.. 
LD945 
LR 1860(02) 
An Act To Reduce the Burden of Tobacco-related Illness by Increasing Revenue from the Cigarette 
Tax for Use for Tobacco Cessation 
Fiscal Note for Bill as Amended by Committee Amendment/1"1 lH-5 /p 6 ) 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY2017-18 
$0 
$8,686,574 
$8,686,574 
$2,898 
FY 2018-19 
$0 
$21,648,768 
$21,648,768 
$6,994 
Projections 
FY2019-20 
$0 
$33,355,301 
$33,355,301 
$25,410 
Projections 
FY2020-21 
$0 
$43,966,088 
$43,966,088 
$31,150 
The bill includes General Fund appropliations to the Department of Health and Human Services of $8,655,574 in 
fiscal year 2017-18 and $21,617,768 in fiscal year 2018-19 for tobacco use prevention and cessation services. 
The bill increases the cigarette tax by 15 mills per cigarette annually until the total tax reaches 17 5 mills per cigarette 
and would increase General Fund revenue by $8,686,574 in fiscal year 2017-18 and $21,648,768 in fiscal year 2018-
19. It would also increase Local Government Fund revenue by $2,898 in fiscal year 2017-18 and $6,994 in fiscal year 
2018-19. The bill includes General Fund appropliations of $31,000 in fiscal years 2017-18 and 2018-19 to reflect an 
increase in the cigarette tax of 15 mills per cigarette annually until the total tax reaches 175 mills per cigarette. 
LR1860(02) - Fiscal Note - Page 1 of 1