Maine, USA, implements new tax law, ZYN nicotine bag price increases by more than 50%

Maine, USA, implements new tax law, ZYN nicotine bag price increases by more than 50%

Maine, USA, has implemented a 42% excise tax on nicotine pouch products, causing the prices of nicotine pouches such as ZYN to soar across the state, with the price of ZYN rising by 51.87%. The tax bill was passed amid partisan differences and is expected to bring additional revenue to the state government.

 

According to The mainewire on August 14, the price of nicotine pouches in Maine, USA, has now begun to soar across the state as the 42% excise tax has been extended to these products.

 

The passage of this tax bill was strictly divided along party lines, with only Democratic state legislators voting in favor and all Republican state legislators present voting against.

 

The state's governor, Janet Mills (Democrat), allowed the measure to become law in April without her signature.

 

Starting this week, ZYN nicotine pouches and other non-tobacco nicotine products will be subject to a wholesale tax increase of up to 42%, and this fee increase has already affected convenience stores within the state.

 

One gas station store, Nouria, said they will now be forced to increase the price of a box of ZYN nicotine pouches from $5.59 to $8.49 overnight, a price increase of 51.87%.

 

The company takes solace in the fact that New Hampshire has already imposed a similar tax on these products, and Massachusetts has already banned flavored nicotine products, making it likely that loyal ZYN users will continue to buy them in Maine stores because they have no better options.

Previously, Zyn and other nicotine salt-based products were not considered tobacco products under Maine tax law because they do not contain any tobacco.

 

However, during the recent legislative session, state Senator Nicole Grohoski proposed amending Maine law to extend the existing tobacco tax to products that do not contain tobacco.

 

The senator's bill redefines the concept of a tobacco product to include all products that contain nicotine; however, it is unclear whether the new tax law would also apply to smoking cessation products, such as nicotine gum or nicotine patches, which would appear to meet that definition.

 

According to the fiscal note accompanying the bill, the tobacco tax expansion is expected to collect $978,000 in revenue in fiscal year 2024.

 

In the coming years, the state government expects to collect more than $2.5 million in additional revenue.