enlarge John Patriquin/Staff Photographer

Caleb Chiasson of Naples, who was smoking Friday on Exchange Street in Portland, says he won’t quit the habit when a tax hike raises the cost of a pack by 61 cents.

enlarge John Patriquin/Staff Photographer

Keith Costello says price increases are inevitable for smokers: “If you are going to smoke, you are going to pay.”

PORTLAND — Ken Jacobs made the switch to roll-your-own cigarettes a year ago to save money. With brand-name cigarettes going for $50 a carton, rolling his own cost only $8 to $10 for the same number of cigarettes.

But starting April 1, the roll-your-own cost will skyrocket because of a new federal tax on cigarettes and tobacco products.

"It's outrageous. It's insane," said Jacobs, who lives in Portland and was smoking Friday on Congress Street.

The federal tax on cigarettes is increasing 156 percent, from 39 cents per pack to $1 a pack, and the tax on most cigars is rising sixfold, from 5 cents to 35 cents. The tax on moist snuff is going from 4 cents to 11 cents a can, and on pipe tobacco from 6 cents to 18 cents an ounce.

With the tax increase, brand-name cigarettes will cost close to $6 or $7 a pack. But roll-your-own tobacco is going up the most, from $1.10 a pound to $24.78 a pound.

Congress raised tobacco and cigarette taxes in order to pay for the extra insurance coverage provided in the federal Children's Health Insurance Program, which was signed into law by President Obama on Feb. 4.

Some smokers and smoke shop owners say the tax is unfair, while health organizations are hailing the legislation. The American Lung Association of New England says tobacco use will drop in Maine and other states because of the federal tax.

Courtney King, association spokeswoman, said the adult smoking rate is 20.2 percent in Maine and the high school rate is 14 percent. King said the double whammy of the tax increase and the recession could help accelerate the quit rate.

"But we don't have any hard facts," she said.

Maine Revenue Services predicts the federal tax will result in a $10 million drop in revenue from lost state taxes as smokers either choose to quit, smoke less or obtain tobacco tax-free over the Internet or from the black market. All sellers are supposed to collect the taxes, but some online and under-the-table vendors do not.

Maine's tax is $2 a pack, and revenue from cigarettes and tobacco products is on the decline. In 2007, the state collected $158.9 million in cigarette and tobacco taxes, compared with $150.5 million in 2008.

Smoke shop owners say their businesses are going to suffer.

"It's ludicrous," said Dan Ducharme, owner of Dad's Cigar Parlor in Biddeford. He said smokers will switch to cheaper brands and buy less.

Ducharme said the government could bring about more positive change by discouraging inactivity, which leads to obesity, and should impose a tax on video games.

"They would make even more money than taxing a dying business, no pun intended," he said.

On the streets of Portland, smokers appeared to be resigned to the increasing cost of their nicotine habits. Caleb Chiasson of Naples said paying 61 cents more per pack of cigarettes is not enough of an extra cost for him to quit.

"It is not going to do anything for me," Chiasson said.

Keith Costello of Westbrook said price increases are inevitable for smokers.

"If you are going to smoke, you are going to pay," he said.

Tim Dunn of Saco said none of the tobacco taxes of the past have led him to quit. He said he is not sure whether the new increase on April 1 will prove to be the final straw.

"We will see," Dunn said.

Mark Audette of Portland said the federal tax might finally put cigarettes beyond his financial reach. He goes through more than a pack a day.

"You can't afford $200 to $250 a month. That is a car payment," he said.

Staff Writer Beth Quimby can be contacted at 791-6363 or at:

bquimby@pressherald.com