Maine consumers will soon see a new line on their monthly Netflix and Hulu bills. Starting Jan. 1, digital streaming services will be included in the state’s 5.5% sales tax.
The new charge — billed by the state as a way to level the playing field around how cable and satellite services and streaming services are taxed — is among a handful of tax changes coming in the new year.
The sales tax on adult-use cannabis will increase from 10% to 14%, also on Jan. 1. Taxes on cigarettes will increase $1.50 per pack — from $2 to $3.50 — on Jan. 5.
All three changes are part of the $320 million budget package lawmakers approved in June as an addition to the baseline $11.3 billion two-year budget passed in March.
Here are a few things to know about the streaming tax:
1. Why is this new tax taking effect?
Taxes on streaming services have been a long time coming in Maine. Former Republican Gov. Paul LePage proposed the idea in 2017, and it was pitched by Gov. Janet Mills, a Democrat, in 2020 and 2024. The idea was rejected all three times — until this year.
State officials said last spring the change creates fairness in the sales tax as streaming services become more popular and ubiquitous. It’s also expected to generate new revenue for the state.
2. What services are impacted?
Currently, music and movies that are purchased and downloaded from a website are subject to sales tax, but that same music and those same movies are not taxed when streamed online.
The new changes add sales tax to monthly subscriptions for movie, television and audio streaming services, including Netflix, Hulu, Disney Plus, Spotify and Pandora. Podcasts and ringtones or other sound recordings are also included.
3. How much is it likely to cost you?
The new tax would add less than $1 to a standard Netflix subscription without ads priced at $17.99 per month. An $89.99 Hulu live television subscription would increase by about $5 per month.
Beginning Jan. 1, providers will be required to state the amount of sales tax on customers’ receipts or state that their price includes Maine sales tax.
4. How much new revenue is this generating for the state?
The digital streaming tax is expected to bring in $5 million in new revenue in fiscal year 2026, which ends June 30. After that, it’s projected to bring in $12.5 million annually, with that figure expected to increase to $14.3 million by 2029.
The tax increase on cigarettes, which also includes an equivalent hike on other tobacco products, is expected to boost state revenues by about $75 million in the first year.
The cannabis sales tax increase, meanwhile, will be offset in part by a reduction in cannabis excise taxes, which are paid by cultivation facilities on transfers to manufacturers or retailers. The net increase in state revenue will be about $3.9 million in the first full year, the state projects.
Defensemen Max Wanner was re-assigned to the Maine Mariners from the Providence Bruins on Thursday. Defenseman Michael Underwood was also re-assigned to Maine.
Wanner, 22, was acquired by the Boston Bruins when they traded Trent Federic to Edmonton last March. He played in 15 games for the AHL Providence Bruins at the end of last season, and seven this season.
Underwood returns for his second stint with the Mariners. He appeared in 67 games with Maine last season.
Some hot new titles have been arriving late at Maine libraries in recent months, after the closing of one the country’s major library book distributors.
Baker & Taylor, based in North Carolina, began winding down its operations in the fall and expects to close entirely this month. The company’s demise has left many Maine libraries scrambling to buy books through other sources, including local book stores, and to endure deliveries taking twice as long.
That means patrons expecting to get new books on or near publication dates are waiting longer to start turning pages.
At the Portland Public Library, “Heart The Lover” by Maine author Lily King wasn’t available to patrons until nearly a month after its Sept. 30 publication date, even though it was ordered in July. At the Libby Memorial Library in Old Orchard Beach, John Grisham’s Oct. 21 release “The Widow” took six weeks to arrive. Staff at the Kennbunk Free Library weren’t sure how long they’d have to wait for “The Correspondent” by Virginia Evans, so they bought two copies at a local store, Octopus Bookshop. As of this week, there were 28 holds on the book.
“Baker & Taylor closing has totally rocked the library world nationwide. It has long been the preferred vendor among many Maine libraries, and their closure is certainly having an impact on us,” said Sarah Skawinski, associate director of the Portland Public Library and president of the Maine Library Association. “I think we’re over the hump now, though.”
Skawinski and other librarians say Baker & Taylor had been having problems getting books from publishers and had been slow with some deliveries, a problem that began during the COVID pandemic. Last year when it became apparent Baker & Taylor was likely going out of business, many libraries switched to the nation’s other major distributor, Ingram Content Group, as well as another company called Brodart Library Supplies. But with increased demand, both those companies have been slow in filling some orders in the last couple months, too.
Industry publications reported that Baker & Taylor’s problems were mostly financial, beginning in the pandemic and included the failed acquisition of another company. An email to Baker & Taylor asking for more information on its closure was not answered Wednesday.
Not every Maine library bought the majority of its books from Baker & Taylor; some used other distibutors instead. Staff at the Waterville Public Library, for instance, say they rarely used the company and weren’t impacted. The Lithgow Public Library in Augusta was only getting about four books a month from Baker & Taylor, said Director Sarah Curra Schultz-Nielsen. Those included children’s books, reference books and travel guides. Finding other distributors for those books, including Brodart and Bookshop, a company that sells mainly to independent bookstores, has been “mildly inconvenient” for staff and has not impacted patrons, Schultz-Nielsen said.
But other libraries used Baker & Taylor for most of its new releases, including fiction and non-fiction, as well to replacements for worn-out books. Stephen King’s books, for instance, have to be replaced pretty regularly, some librarians said.
The Portland Public Library had been ordering about 1,000 items a month from Baker & Taylor, mostly printed books. The library has about 359,000 physical items in its collection. Now, new books are coming to the library from Ingram, but will take maybe four weeks to arrive, compared to one to two weeks when Baker & Taylor was running smoothly.
And there is added work for librarians: While Baker & Taylor sent books that had already been catalogued and ready to be shelved, with bar codes and spine labels, Ingram is not yet offering that service, said Nicole Harkins, cataloging librarian at the Portland library.
“Patrons are aware it’s taking longer and they’re being patient,” Harkins said.
” data-image-caption=”<p>Rosanne Barnes, an adult services reader’s advisor, shelves new fiction books at Portland Public Library on Wednesday. (Brianna Soukup/Staff Photographer)
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Rosanne Barnes, an adult services reader’s advisor, shelves new fiction books at Portland Public Library on Wednesday, (Brianna Soukup/Staff Photographer)Kennebunk Free Library also switched to Ingram, and staff are spending more time prepping books, including putting protective plastic covers on them, said Allison Atkins, assistant director and head of adult services. Atkins said library staff wrote about their “book ordering troubles” in a library newsletter and on social media, so patrons would understand why new books were slow to arrive. The library used to get about 100 books a month from Baker & Taylor and despite still being “way behind” on new books, patrons have been patient, Atkins said.
For smaller libraries with smaller staffs, finding a new supplier is not always easy. Baker & Taylor was the major books supplier for Davis Memorial Library in Limington. The staff there is so small that they didn’t have time to research or compare new suppliers, so they waited until early this month, said Heidi Libby, the library’s director. As a result, the library has very few new arrivals on its shelves right now and has been filling the “new book” shelves with donated books as well as ordering from Amazon.
” data-image-caption=”<p>Volunteer Jim Perry covers books with protective covering at the Kennebunk Free Library on Wednesday. (Gregory Rec/Staff Photographer)
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Volunteer Jim Perry covers books with protective covering at the Kennebunk Free Library on Wednesday. (Gregory Rec/Staff Photographer)
Several librarians said this week that local book stores have been a big help during this period, getting books quickly and pricing them affordably. Sherman’s Maine Coast Bookshops, which has 10 stores across the state, saw its sales to local libraries increase from $50,000 in 2024 to nearly $100,000 in 2025, said Jeff Curtis, owner and CEO of Sherman’s.
The Auburn Public Library would sometimes get more than 300 books a month from Baker & Taylor, including books for adults, teens, and children, as well as fiction and nonfiction as well as some large print books and CDs, said Nancy O’Toole, collections manager at the library.
When Baker & Taylor started having problems, the library bought books from Amazon and the local Bull Moose music and book store chain. Now, with Baker & Taylor closing, the library has switched to Ingram, but has seen delivery delays as that company has been inundated with new customers. This week the library got an order of books that were released in November, including “Exit Strategy” by Lee Child and Andrew Child, “The Seven Rings” by Nora Roberts and “Return of the Spider” by James Patterson.
“The hope is that now that the holidays are over, shipping from Ingram will expedite. But just to be safe, we are choosing to buy certain books elsewhere, including titles by big-name authors, popular series, or anything tied to a fast-approaching holiday,” said O’Toole. “Patrons want to see those titles on the shelf in a timely manner, and we want to make sure we fulfill those expectations.”
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Equipment at Woodland Pulp in Maine roared back to life in mid-December after a 60 day pause in operations, and now one of the state’s largest mills is again accepting wood from New Brunswick producers.
“On Monday, we restarted purchasing fibre for the mill,” company spokesperson Scott Beal said.
“We’re back in the market. We are bringing in some fibre from suppliers in Canada, hardwood and chips.”
The general manager of the Carleton Victoria Forest Products Marketing Board says the news is welcome but not nearly enough to help embattled private woodlot owners in the province.
“Everything is good news at this point, but it is not as good as it could be,” Kim Jensen said. “We’re not back where we were.”
With sales down by about two-thirds from last year, Jensen said some woodlot owners are deciding to pack it up, while others struggle on.
“We have had some older ones who’ve left, they’ve just, they’ve had enough and they’ve left,” she said.
“The people who have invested in the business, have bought processors and forwarders, they have to stay in business. And if you have $1,000,000 worth of equipment there, your payments are $40,000 to $60,000 a month and you have to work. You can’t just go somewhere else and get a job.”
Duty rates on New Brunswick wood were set at 35 per cent in September, when U.S. President Donald Trump announced an additional 10 per cent tariff on lumber imports.
The sudden increase was too much for Woodland Pulp to bear. The mill relied on New Brunswick wood for about a third of its supply prior to October.
“It certainly adds cost to the business and, you know, like other wood users, I mean we’re always looking and hoping and trying to source fibre at the least cost,” Beal told CBC News in October.
The Baileyville-based mill has rehired all of the 144 people laid off during its two month shut-down, and Beal said it will likely take some time to ramp up to accept the amount of wood it previously did.
And with the difficult and uncertain tariff environment, Beal said, it’s hard to say how long the mill would be able to continue purchasing Canadian wood.
“It’s a very challenging pulp market,” he said.
“The tariffs remain in place. That hasn’t changed. So it’s not reasonable to think that that won’t be a headwind for the business.”
The federal government did create a $1.25 billion fund to help the industry survive, but Jensen says that hasn’t meant support for individual private woodlot owners.
In October, Jensen told CBC News that sales of timber by the marketing board’s members totalled about $1 million for all of 2024. They have fallen to about $200,000 over the past 12 months.
And the cost of cross-border business has continued to rise.
Before Woodland Pulp stopped taking Canadian timber, the company had a lumberyard in Florenceville ,where producers could drop off wood. Woodland would then take responsibility for shipping it the rest of the way to the mill.
Now it’s up to individual producers to source transportation and to arrange a broker to help meet cross-border requirements. That’s adding between $60 and $100 per load of timber heading to the U.S.
“The markets are tightening up, and the prices are going down, and you can only go down so far before it’s just done,” Jensen said.
“A mill can stop and start up, maybe. But a private guy who loses his equipment, he’s lost everything. He’s not coming back.”
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