Bill
Bill > A2298
NJ A2298
Limits "tobacco and vapor products tax" on cigars to up to $0.50 per cigar.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill limits the taxation of cigars under the Tobacco and Vapor Products Tax Act to a maximum of 50 cents per cigar. Currently, the tax on cigars is 30 percent of the wholesale price. Under this bill, the tax will still be 30 percent of the wholesale price, but the tax will be capped at 50 cents per cigar. The bill also amends current law to clarify tax payment responsibilities of tobacco product wholesalers and distributors. Every state imposes some tax on non-cigarette tobacco products. Ten states have adopted a tax cap per cigar. Cigar retailers with establishments in those states have claimed that prior to the establishment of the cap their retail sales prices suffered a serious competitive disadvantage with out-of-state, Internet, and catalog businesses that did not collect state tobacco products tax. Setting a maximum tax per cigar is proposed to encourage New Jersey consumers to make more of their cigar purchases from New Jersey "brick and mortar" retailers who are often small locally-owned businesses. A 50 cent per cigar tax cap will level the playing field for New Jersey retailers and potentially increase State revenues collected under the tax.
AI Summary
This bill limits the taxation of cigars under the Tobacco and Vapor Products Tax Act to a maximum of 50 cents per cigar. Currently, the tax on cigars is 30 percent of the wholesale price. Under this bill, the tax will still be 30 percent of the wholesale price, but the tax will be capped at 50 cents per cigar. The bill also amends current law to clarify tax payment responsibilities of tobacco product wholesalers and distributors. The purpose of this bill is to encourage New Jersey consumers to make more of their cigar purchases from New Jersey "brick and mortar" retailers by leveling the playing field with out-of-state, Internet, and catalog businesses that do not collect state tobacco products tax, potentially increasing state revenues collected under the tax.
Committee Categories
Health and Social Services
Sponsors (8)
Brian Bergen (R)*,
Wayne DeAngelo (D)*,
Jay Webber (R)*,
John DiMaio (R),
Dawn Fantasia (R),
Nancy Muñoz (R),
Gerry Scharfenberger (R),
Erik Simonsen (R),
Last Action
Introduced, Referred to Assembly Health Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A2298 |
BillText | https://pub.njleg.gov/Bills/2024/A2500/2298_I1.HTM |
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