Maine Hikes Tobacco & Cannabis Taxes to Boost Budget

Maine’s Legislature has approved a new $320 million supplemental budget, now awaiting Gov. Janet Mills’ signature. This update tops off the nearly $11.3 billion fiscal framework passed in April, plugging holes and supporting key state services.

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Why the Raise?

• Closing Medicaid gaps: The state’s Medicaid program was running a deficit, and this boost helps stabilize it.
• Investing in families: Additional funding will support child welfare, affordable housing, and other community needs.
• Addressing revenue shortfalls: The supplemental plan aims to fill budget shortfalls without cutting current services.

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What’s Getting Taxed?

Item	New Tax Proposal
Cigarettes	+$1.50 per pack (a total of $3.50 tax)
Cannabis	Increased tax modeled after tobacco hikes
Streaming services	New digital tax on subscriptions
Paint (per gallon)	+$0.50 in excise tax
Online private pensions	Additional tax levy
Hunting/fishing licenses	Increased licensing fees

Governor Mills had initially supported a $1-per-pack increase on cigarettes, but legislative amendments upped it to $1.50 to cover more ground and generate extra revenue.

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Voices from the Capitol

• Rep. Drew Gattine (D‑Westbrook) praised the budget as timely and robust: “It addresses the biggest issues Maine people are facing, and protects critical investments … in health care, food security, education, housing and child care.” aol.com+3justthenews.com+3twitter.com+3
• Sen. Bruce Bickford (R‑Androscoggin) warned against what he sees as excessive government spending: “Mainers already experience the fifth highest tax burden in the country… it’s time to stop bleeding Mainers dry.” justthenews.com
• Rep. Nina Milliken (D‑Blue Hill), one of six Democrats who initially opposed the bill, criticized the tax structure’s fairness: “This proposed budget is balanced on the backs of some of Maine’s poorest residents through regressive taxation.” justthenews.com

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The GOP Response

Republicans attempted a “people’s veto” effort to reverse the supplemental package via referendum. Although they did gather signatures, the petition fell short of the required amount, meaning the budget remains headed to the governor’s desk as-is.

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Bottom Line

Maine’s latest budget patch expands funding for essential services—healthcare, welfare, and education—but finances it through broad-based tax hikes on everyday goods such as tobacco, cannabis, streaming media, and paint. Supporters say it’s a pragmatic approach to preserving vital services, while critics warn that it places an unfair burden on low-income residents.


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