New Maine laws, policies, and a handful of tax increases will take effect starting on Jan. 1.

The new year means new taxes. Mainers will see major changes such as increases on cigarette and cannabis tax and a new tax put on streaming services.

“I think it’s already pretty expensive,” said Annabelle Hennessey.

Starting January 1, streaming services such as Netflix, Spotify, and Hulu will be subject to the state’s 5.5 percent sales tax.

Streaming apps on a TV (SBG)

Some Mainers said they are not in favor of the decision made by the Legislature earlier this year.

“I think it is ridiculous, there’s already been a ton of new fees and the hike in subscription prices already,” Dean Preston said.

“For a lot of families, it will be unaffordable. I think people may have to go back to cable,” Hennessey said.

This changes prior law which taxes cable and satellite TV but not streaming subscriptions.

Another big tax change is coming on tobacco sales. The state tax on a pack of cigarettes will rise to $3.50. It’s the first tobacco tax increase in Maine in 20 years.

There will also be varying sales tax increases on vapes, nicotine pouches, and chewing tobacco.

“Maine has the highest adult smoking rate and the second highest youth smoking rate in New England,” Gov. Janet Mills said.

FILE – A man holds a lit cigarette while smoking in San Francisco, Wednesday, Dec. 2, 2020. (AP Photo/Jeff Chiu, File)

Public health officials hope the move will discourage tobacco use, especially among younger generations.

“They haven’t increased their tax in 20 years so it’s long overdue but a very positive step forward,” said Thomas Carr, with American Lung Association.

The sales tax on recreational marijuana is also going up.

“We’ll see an increase of four percent to the consumer through the increase of the taxes. The base price of the products aren’t changing at all,” said Jackson McLeod, the CEO of Atlantic Farms.

All three changes were part of the state budget agreement passed earlier this year.

The streaming subscription and cannabis tax increases go into effect January 1.

Marijuana products. (WGME)

The cigarette tax increase starts January 5.

The streaming service tax will show up on your bill.

These three tax changes are expected to generate more than $100 million for the state over the next two years.