From Augusta to Your Storefront

Legislative Changes and Their Impact

BY KYLE MAY

The 2024 elections are now behind us, setting the stage for the 2025 legislative session in Augusta. Nationwide and in Maine, Republicans fared well, picking up multiple seats in the Maine House of Representatives and Senate. They also maintained control of the United States House of Representatives, gained the United States Senate, and won the Presidency, creating a fundamental shift for federal policymakers.

Many small businesses are eager to see what these changes mean for their day-to-day operational challenges. One segment under continuous pressure is the tobacco and nicotine category, which represents nearly one-third of inside sales for the average convenience store. Unfortunately, there are no crystal balls to foresee exactly what will happen.

What we do know is that Maine has introduced a tobacco flavor ban every year since 2021. Fortunately, that bill has stalled in one form or another each year. It is likely a legislator will introduce similar legislation in 2025. However, the collective voice of small businesses from Presque Isle to Portland has been critical in highlighting the economic impact such a bill would have.

Unfortunately, localities continue to advance flavor bans, ignoring the inevitable nature of cross-border purchases. Bangor, Bar Harbor, Brunswick, Falmouth, Hallowell, Portland, and South Portland have each enacted bans on the sale of flavored tobacco products. We must remain vigilant in other localities to prevent the spread of these local flavor bans.

Another issue of concern is the possibility of an increased excise tax on the sale of tobacco products at the state level. Over the past few years, we’ve seen states like New York and Maryland raise the excise tax on cigarettes to $5.00 per pack or more. It has been proven time and time again that cigarette taxes are an unstable revenue stream and impact lower income communities the hardest. Additionally, they encourage cross-border purchases, which entirely removes revenue from one state and gives it to another, ultimately creating a system of winners and losers for both the state and locally owned small businesses.

"To defeat negative proposals out of Augusta...it is critical that convenience store owners make their voices heard. If legislators do not hear from local business owners like yourselves, they will never understand the true impact of these proposals."

We remain optimistic that the state of Maine will instead focus its efforts on the growing problem of illicit vapor products. A recent Truth Initiative study found that more than 86% of e-cigarettes on the market are illegal products under federal law. The proliferation of such a large illicit market harms law-abiding retailers, like MEMA members, and must be addressed.

To defeat negative proposals out of Augusta or advance thoughtful policy like a crackdown on illicit vapor, it is critical that convenience store owners make their voices heard. Antitobacco lobbyists, funded from D.C. by activist billionaires, have nearly bottomless pockets and work every day to downplay the impact these proposals will have on your business. If legislators do not hear from local business owners like yourselves, they will never understand the true impact of these proposals. Whether you are a convenience store owner, fuel supplier, or in any way involved in the convenience store industry, we must understand that our legislative issues are intertwined. A reduction in in-store sales driven by negative tobacco policy reduces business income, making it more difficult to invest in forecourt development and vice versa. Our collective voice is loud and one that legislators want to hear. When we work together, I am confident that the best days for the convenience gas industry are still ahead of us.

Kyle May is the Director of External Relations for Reynolds American Inc..