Tobacco & Vaping 101: Maine
Taxpayers Protection Alliance
February 3, 2022
Current Adult Smoking Rates
According to data from the Centers for Disease Control and Prevention’s (CDC) Behavioral Risk Factor Surveillance Survey (BRFSS), smoking rates continue to decline in the Pine Tree State.[i]
In 2020, 16.5 percent adults were classified as current smokers, amounting to 181,826 adults.[ii] This is a 6.3 percent decrease from 2019 when 17.6 percent of adults were current smokers. Further, this is a 34 percent decrease from 1995 when 25 percent of Maine adults reported smoking and the first year the BRFSS started collecting data on smoking rates.
In 2020, among adults, 13.1 percent reported smoking every day, 3.4 percent reported smoking some days, 29.8 percent reported being a former smoker, and 53.6 percent had never smoked. Daily smoking rates have decreased by 5.6 percent since 2019, and by 41 percent since 1995. Moreover, never-smokers increased by 3.1 percent between 2019 and 2020, and by 11.4 percent between 1995 and 2020.
Lower Income Persons More Likely to Smoke
Among current adult smokers in Maine, in 2020, 42.6 percent reported annual incomes of less than $15,000 and 27 percent of current smokers reported earning between $15,000 and $24,999 per year. In fact, more than two-thirds (69.6 percent) of all current adult smokers earned less than $24,999 per year in 2020. Only 9.8 percent of current adult smokers in Maine reported earning $50,000 or more a year in 2020.
Interestingly, smoking rates have declined more rapidly among higher income persons in the Pine Tree State than their low-income counterparts. Between 1995 and 2020, smoking rates among current smokers earning $24,999 or less increased by 10.8 percent. Conversely, among persons earning $50,000 or more, rates decreased by 37.6 percent during the same period. In fact, between 2019 and 2020, smoking rates increased by 3.6 percent among low-income earners, yet decreased by three percent among higher income smokers.
Adult Vaping Rates
Despite providing annual data on cigarette and smokeless tobacco use, the CDC’s BRFSS only reports on adult e-cigarette use for 2016 and 2017.
In 2017, according to the BRFSS, 4.1 percent of Maine adults were current e-cigarette users. Similar to income status among smokers, lower income persons are more likely to use vapor products. In 2017, among current adult e-cigarette users, 12.6 percent reported household incomes of $25,000 or less per year. Conversely, only 2.6 percent reported earning $50,000 a year or more.
Economic Impact of Vaping in Maine
In 2021, according to the analysis by the Vapor Technology Association, the industry created 241 direct vaping-related jobs in Maine. These jobs generated more than $7.2 million in wages.[iii] Moreover, the industry has created hundreds of secondary jobs in the Pine Tree State, bringing the total economic impact in 2021 to $19.4 million. In the same year, Maine received more than $4 million in state taxes attributable to the vaping industry.
Unfortunately, efforts by anti-vaping organizations and policymakers have negatively affected vape shops in the Pine Tree State. The number of employees has decreased by 23 percent from 313 in 2018 to 241 in 2021.[iv] Further, state tax collections in 2021 were down 1.9 percent from 2018’s level of $4.09 million. Overall, the economic output from the vaping industry in Maine increased by only 5.6 percent, from $51.4 million in 2018 to $54.3 million in 2021.
Youth Tobacco and Vaping Rates
The most recent data on youth tobacco and vapor product use in Maine comes from the 2019 Youth Risk Behavior Survey.[v] In 2019, 46.3 percent of Maine high school students reported ever-trying e-cigarettes, 30.2 percent reported past 30-day use, and 6.3 percent reported using vapor products daily.
It is worthy to note that youth combustible cigarette use is at an all-time low. In 2019, 6.8 percent of Maine high school students reported using a cigarette in the past 30 days, an 82 percent decrease from 1995 when 37.8 percent of high school students smoked cigarettes. Further, daily cigarette use has decreased by 91.9 percent from 16 percent of high school students reporting daily smoking in 1995 to 1.3 percent in 2019.
Moreover, nationally, the youth vaping rate continues to decline. In 2021, according to the National Youth Tobacco Survey (NYTS), an estimated 11.3 percent of high school students and 2.8 percent of middle school students reported having used a vapor product on a least one occasion in the month prior to the survey.[vi] Further, only 3.1 percent of high school students and less than one percent of middle schoolers reported daily e-cigarette use. The rate of decline is remarkable: among high school students, vaping rates have declined by 41.8 percent since 2020 and by 58.9 percent since 2019, when 27.5 percent reported using e-cigarettes.
Young Adult Smoking Rates
Electronic cigarettes and vapor products were first introduced to the U.S. in 2007 “and between 2009 and 2012, retail sales of e-cigarettes expanded to all major markets in the United States.”[vii] Moreover, between September 2014 and May 2020, e-cigarette sales in the U.S. increased by 122.2 percent.[viii]
Examining data from the CDC’s BRFSS finds that e-cigarettes’ market emergence has coincided with a significant reduction in smoking rates among young adults.
In 1998, among current adult smokers, 35.1 percent were 18 to 24 years old. In 2008, this had decreased by 47.6 percent to 18.4 percent of adult smokers in Maine being between 18 to 24 years old.
In the years after e-cigarette’s market emergence in the early 2010s, smoking rates among current smokers aged 18 to 24 years decreased by 46.8 percent. Indeed, in 2010, among current smokers in Maine, 23.1 percent were between 18 to 24 years old. In 2020, only 12.3 percent of current smokers were 18 to 24 years old.
Interestingly, e-cigarettes’ market emergence was associated with similar declines in average annual percent decreases. Between 1998 and 2008, the percentage of current smokers aged 18 to 24 years old decreased on average by 5.6 percent each year. Between 2010 and 2020, annual percentage decreases average at 5.5 percent.
Further, since 2016, when the U.S. surgeon general issued an alarm about youth e-cigarette use, smoking rates among adults aged 18 to 24 years in the Pine Tree State have decreased by 39 percent, with an average annual decrease of 9.7 percent.
Wasted Tobacco Dollars
Between 2000 and 2020, Maine collected an estimated $2.5 billion in cigarette taxes.[ix] During the same 20-year period, the Pine Tree State increased the tax rate on cigarettes twice. The last tax increase raised the rate by $1.00, to $2.00 per pack.
The last tax increase did lead to an immediate 64.9 percent increase in cigarette tax revenue the year after the tax was imposed, but this has steadily declined in the long-term. Between 2007 and 2020, cigarette tax revenue declined on average by 1.5 percent annually. In 2020, Maine collected $120.6 million in cigarette tax revenue, a 20.4 percent decrease from the $151.5 million in cigarette tax revenue that was collected in 2006.
In the mid-1990s, Maine sued tobacco companies to reimburse Medicaid for the costs of treating smoking-related health issues. And, in 1998 with 45 other states, the Pine Tree State reached “the largest civil litigation settlement in U.S. history” through the Master Settlement Agreement (MSA).[x]
Under the MSA, states receive annual payments – in perpetuity – from the tobacco companies, while relinquishing future claims against the participating companies. Between 2000 and 2020, Maine collected $1.1 billion in MSA payments.[xi]
Tobacco taxes and tobacco settlement payments are justified to help offset the costs of smoking, as well as prevent youth initiation. Like most states, Maine spends very little of existing tobacco moneys on tobacco control programs – including education and prevention.
Between 2000 and 2020, Maine allocated only $243.7 million in state funds towards tobacco control programs.[xii] This is 9.8 percent of what the state collected in cigarette taxes in the same 20-year time span and 22.1 percent of MSA payments. In total, in 20 years, Maine allocated only 6.8 percent of what the state received in tobacco taxes and settlement payments towards tobacco education and prevention efforts. In essence, for every $100 received in tobacco-related taxes and settlement payments, the state spent $6.80 funding tobacco control programs.
Summary Points:
- Smoking rates continue to decline in the Pine Tree State. In 2020, only 16.5 percent of adults were current smokers. This is a 6.3 percent decrease from 2019.
 - More than two-thirds (69.6 percent) of all current smokers earned less than $24,999 per year in 2020.
 - Nationally, current vapor product use among high school students has declined by 41.8 percent since 2020 and by 58.9 percent since 2019, when 27.5 percent reported using e-cigarettes on at least one occasion in the 30 days prior to the survey.
 - E-cigarettes’ market emergence is associated with low young adult smoking rates. In 2020, among current smokers in Maine, only 12.3 percent current smokers were 18 to 24 years old – a 46.8 percent decrease from 2010. Further, since 2016, smoking rates among young adults have decreased by 39 percent.
 - Maine’s vaping industry created $19.4 million in economic activity in 2021 while generating 241 direct vaping-related jobs and contributed more than $4 million in state taxes.
 - Unfortunately, anti-vaping efforts have reduced the industry’s economic impact. The number of employees decreased by 23 percent from 313 employees in 2018, state tax collections were down 1.2 percent from 2018’s $4.1 million, and overall economic activity had increased by only 5.5 percent from $51.4 million in 2018.
 - Maine continues to allocate very little of tobacco-related settlement payments and taxes on tobacco control programs, including education and prevention.
 
In 2020, the Pine Tree State collected $120.6 million in state cigarette excise taxes and $46.2 million in tobacco settlement payments, yet allocated only $11.8 million (7.1 percent) to tobacco control. In 20 years, for every $100 the state received in tobacco-related payments, it spent $6.80 funding tobacco control progra
[i] Centers for Disease Control and Prevention, “BRFSS Prevalence & Trends Data,” 2020, https://www.cdc.gov/brfss/brfssprevalence/.
[ii] Kids Count Data Center, “Total population by child and adult populations in the United States,” The Annie E. Casey Foundation, September 2021, https://datacenter.kidscount.org/data/tables/99-total-population-by-child-and-adult-populations#detailed/1/any/false/1729,37,871,870,573,869,36,868,867,133/39,40,41/416,417.
[iii] Vapor Technology Association, “The Economic Impact of the Vapor Industry Maine,” 2021, https://vta.guerrillaeconomics.net/reports/4324c615-72ce-4814-a141-7ad53e812f23?.
[iv] Vapor Technology Association, “The Economic Impact of the Vapor Industry Maine,” 2018, https://vta.guerrillaeconomics.net/reports/2027bdfd-f427-4bfa-a57b-5258c91973d1?.
[v] Centers for Disease Control and Prevention, “High School YRBS 2019 Results,” 2019, https://nccd.cdc.gov/Youthonline/App/Default.aspx.
[vi] Eunice Park-Lee PhD. et al., “Notes from the Field: E-Cigarette Use Among Middle and High School Students – National Youth Tobacco Survey, United States, 2021,” Morbidity and Mortality Weekly Report, Centers for Disease Control and Prevention, October 1, 2021, https://www.cdc.gov/mmwr/volumes/70/wr/mm7039a4.htm.
[vii] National Center for Chronic Disease Prevention and Health Promotion, “E-Cigarette Use Among Youth and Young Adults: A Report of the Surgeon General,” 2016, https://www.ncbi.nlm.nih.gov/books/NBK538679/.
[viii] Fatma Romeh M. Ali, PhD., et al., “E-cigarette Unite Sales, by Product and Flavor Type – United States, 2014 – 2020,” Morbidity and Mortality Weekly Report, Centers for Disease Control and Prevention, September 18, 2020, https://www.cdc.gov/mmwr/volumes/69/wr/mm6937e2.htm/.
[ix] Orzechowski and Walker, “The Tax Burden on Tobacco Historical Compilation Volume 55,” 2021. Print.
[x] Tobacco Control Legal Consortium, “The Master Settlement Agreement: An Overview,” August 2015, p. 1, http://publichealthlawcenter.org/sites/default/files/resources/tclc-fs-msa-overview-2015.pdf.
[xi] Campaign for Tobacco-Free Kids, “Actual Annual Tobacco Settlement Payments Received by the States, 1998 – 2021,” January 11, 2022, https://www.tobaccofreekids.org/assets/factsheets/0365.pdf.
[xii] Campaign for Tobacco-Free Kids, “Appendix A: History of Spending for State Tobacco Prevention Programs,” 2021, https://www.tobaccofreekids.org/assets/factsheets/0209.pdf.
Powered By EmbedPress