An Act To Prevent and Reduce Tobacco Use with Adequate Funding and by Raising the Tax on Tobacco Products
Maine Legislature, Session 129, LD 1028
Committee Amendment CA_A_H622 (House)
Amends: 36 MRSA §4401, 36 MRSA §4403

COMMITTEE AMENDMENT .. f1" to H.P. 758, L.D. 1028, Bill, "An Act To 
Prevent and Reduce Tobacco Use with Adequate Funding and by Raising the Tax on 
Tobacco Products" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Prevent and Reduce Tobacco Use with Adequate Funding and by 
Equalizing the Taxes on Tobacco Products' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 36 MRSA §4401, sub-§§2-A, 2-B and 7-A are enacted to read: 
2-A. Electronic smoking device. "Electronic smoking device" means a device used 
to deliver nicotine or any other substance intended for human consumption that may be 
used by a person to simulate smoking through inhalation of vapor or aerosol from the 
device, including, without limitation, a device manufactured, distributed, marketed or 
sold as an electronic cigarette, electronic cigar. electronic pipe. electronic hookah or 
so-called vape pen. 
2-B. Hookah. "Hookah" means a device used for smoking tobacco that consists of a 
tube connected to a container where the smoke is cooled by passing through water. 
7-A. Smoking. "Smoking" includes carrying or having in one's possession a lighted 
or heated cigarette. cigar or pipe or a lighted or heated tobacco or plant product intended 
for human consumption through inhalation whether natural or synthetic in any manner or 
in any form. "Smoking" includes the use of an electronic smoking device. 
Sec. 2. 36 MRSA §4401, sub-§9, as amended by PL 2005, c. 627, §4, is further 
amended to read: 
9. 
Tobacco products. 
"Tobacco products" means cigars; cheroots; stogies; 
electronic smoking devices and liquids used in electronic smoking devices whether or not 
they contain nicotine: periques, granulated, plug cut, crimp cut, ready rubbed; and other 
smoking tobacco; snuff; snuff flour; snus; cavendish; plug and twist tobacco; finecut and 
COMMITTEE AMENDMENT 
a~s. 
COMMITTEE AMEND~T .,4,, to H.P. 758, L.D. 1028 
other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of 
tobacco; and other kinds and forms of tobacco, prepared in such manner as to be suitable 
for ehewmg or smokiB:g in a pipe or otherwise, or both for shewing and smokiB:g; 1*lt 
does not ineluae tobaeeo produets that are subjeet to the tax proviaed by ehapter 703 
intended for human consumption or is likely to be consumed. whether smoked, heated, 
chewed, absorbed, dissolved. inhaled or ingested by any other means. 
"Tobacco 
products" does not include: 
A. Products that are subject to the tax provided by chapter 703: 
B. Drugs, devices or combination products authorized for sale by the United States 
Department of Health and Human Services, Food and Drug Administration, as those 
terms are defined in the Federal Food, Drug, and Cosmetic Act: or 
C. Any product that contains adult use marijuana subject to tax under Title 28-B, 
section 1001. 
Sec. 3. 36 MRSA §4403, sub-§1, as repealed and replaced by PL 2009, c. 213, 
Pt. H, §1 and affected by §3, is amended to read: 
1. Smokeless tobacco. A tax is imposed on smokeless tobacco, including chewing 
tobacco and snuff, at the rate of: 
A. On amounts of smokeless tobacco packaged for sale to the consumer in a package 
that contains one ounce or more of smokeless tobacco, $2.02 per ounce and prorated; 
and 
B. On smokeless tobacco packaged for sale to the consumer in a package that 
contains less than one ounce of smokeless tobacco, $2.02 per package. 
Beginning January 2. 2020. the tax rates in this subsection are subject to adjustment 
pursuant to subsection 5. 
Sec. 4. 36 MRSA §4403, sub-§2, as amended by PL 2005, c. 627, §8, is further 
amended to read: 
2. Other tobacco. A tax is imposed on cigars, pipe tobacco and other tobacco 
intended for smoking at the rate of 20% of the wholesale sales price beginning October 1, 
2005. Beginning January 2, 2020, a tax is imposed on all tobacco products, other than 
those subject to tax under subsection 1, at the rate of 43% of the wholesale sales price. 
Beginning January 2, 2020. the tax rate imposed pursuant to this subsection is subject to 
adjustment pursuant to subsection 5. 
Sec. 5. 36 MRSA §4403, sub-§5 is enacted to read: 
5. Equivalence. If the tax on cigarettes under chapter 703 is increased after January 
2. 2020, the assessor shall calculate a rate of tax on other tobacco products under 
subsections 1 and 2 that is equivalent to the same percentage change in the tax rate for 
one cigarette. The adjusted rates calculated by the assessor take effect at the same time as 
the increase in the tax on cigarettes. 
Sec. 6. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
COMMITTEE AMENDMENT 
\\ (1, ~. 
COMMITTEEAMENDMENT'fl"toH.P. 758,L.D.1028 
Revenue Services, Bureau of 0002 
Initiative: Provides funding for one Tax Examiner position and related costs to review 
and process additional tobacco products tax returns. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF 
Maine Center for Disease Control and Prevention 0143 
2019-20 
2020-21 
1.000 
1.000 
$65,492 
$85,661 
$12,089 
$2,700 
$77,581 
$88,361 
2019-20 
2020-21 
$77,581 
$88,361 
$77,581 
$88,361 
Initiative: Appropriates funds for evidence-based tobacco use prevention and cessation, in 
accordance with the United States Health and Human Services, Centers for Disease 
Control and Prevention best practices. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
Medical Care - Payments to Providers 0147 
2019-20 
$5,100,000 
$5,100,000 
2020-21 
$5,100,000 
$5,100,000 
Initiative: Appropriates and allocates funds for tobacco use cessation medications and 
counseling provided to MaineCare members. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2019-20 
$1,000,000 
$1,000,000 
COMMITTEE AMENDMENT 
2020-21 
$750,000 
$750,000 
ad~· 
COMMITTEE AMENDMENT ;A," to H.P. 758, L.D. 1028 
FEDERAL EXPENDITURES FUND 
All Other 
FEDERAL EXPENDITURES FUND TOTAL 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
FEDERAL EXPENDITURES FUND 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
FEDERAL EXPENDITURES FUND 
SECTION TOTAL - ALL FUNDS 
2019-20 
$1,776,235 
$1,776,235 
2019-20 
$6,100,000 
$1,776,235 
$7,876,235 
2019-20 
$6,177,581 
$1,776,235 
$7,953,816 
2020-21 
$1,332,177 
$1,332,177 
2020-21 
$5,850,000 
$1,332,177 
$7,182,177 
2020-21 
$5,938,361 
$1,332,177 
$7,270,538 
Sec. 7. Effective date. Those sections of this Act that amend the Maine Revised 
Statutes, Title 36, section 4401, subsection 9 and that enact Title 36, section 4401, 
subsections 2-A, 2-B and 7-A take effect January 2, 2020.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment strikes the bill and instead increases the tax on tobacco products, 
other than cigarettes, to 43% of the wholesale sales price, beginning January 2, 2020, and 
includes electronic smoking devices and liquids used in electronic smoking devices in the 
defmition of "tobacco products." The amendment provides that, if the tax: on cigarettes is 
increased after January 2, 2020, the tax on smokeless tobacco and other tobacco products 
will be adjusted by a rate that is equivalent to the percentage change in the tax rate for 
one cigarette. 
The amendment provides ongoing funding of $5,100,000 in each year of the 
biennium to the Department of Health and Human Services, Maine Center for Disease 
Control and Prevention for tobacco use prevention and cessation in order to align with the 
COMMITTEE AMENDMENT 
i.d.~ 
COMMITTEE AMENDMENT A" to H.P. 758, L.D. 1028 
United States Department of Health and Human Services, Centers for Disease Control 
and Prevention recommendations. The bill also provides $1,000,000 in fiscal year 2019-
and $750,000 in fiscal year 2020-21 for tobacco use cessation medications and 
counseling for MaineCare members. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 06/14/19 ;!;?ac 
LD 1028 
LR493(03) 
An Act To Prevent and Reduce Tobacco Use with Adequate Funding and by Raising the Tax on 
Tobacco Products 
Fiscal Note for Bill as Amended by Committee Amendment,~( H-~~l.) 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Federal Expenditures Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY2019-20 
$311,498 
$6,177,581 
$1,776,235 
$5,866,083 
$15,331 
FY 2020-21 
($4,727,245) 
$5,938,361 
$1,332,177 
$10,665,606 
$27,874 
Projections 
FY2021-22 
($4,714,011) 
$5,940,930 
$1,332,177 
$10,654,941 
$27,846 
Projections 
FY2022-23 
($4,676,409) 
$5,967,877 
$1,332,177 
$10,644,286 
$27,818 
This bill increases the tobacco products tax from 20% to 43% of the wholesale sales price and adds electronic 
smoking devices and liquids used in these devices to the definition of tobacco products. These provisions increase 
General Fund revenue by $5,866,083 in fiscal year 2019-20. and $10,665,606 in fiscal year 2020-21. They also 
increase Local Government Fund revenue by $15,331 in fiscal year 2019-20 and $27,874 in fiscal year 2020-21. 
The bill includes General Fund appropriations to the Department of Health and Human Services of $6, 100,000 in 
fiscal year 2019-20 and $5,850,000 in fiscal year 2020-21 for evidence-based tobacco use prevention and cessation 
services and tobacco use cessation medications and counseling provided to MaineCare members. Federal 
Expenditures Fund allocations are also included for the FMAP match. 
The bill also includes General Fund appropriations of $77,581 in fiscal year 2019-20 and $88,361 in 2020-21 to the 
Department of Administrative and Financial Services for one Tax Examiner position and related costs to review and 
process additional tobacco products tax returns. 
LR0493(03) - Fiscal Note - Page I of I