Bill
Bill > S2569
NJ S2569
Limits "tobacco and vapor products sales tax" on cigars to up to $0.50 per cigar.
summary
Introduced
02/08/2024
02/08/2024
In Committee
02/08/2024
02/08/2024
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, often small locally-owned businesses, by leveling the playing field with out-of-state, internet, and catalog businesses that do not collect state tobacco products tax.
Committee Categories
Health and Social Services
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee (on 02/08/2024)
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/S2569 |
BillText | https://pub.njleg.gov/Bills/2024/S3000/2569_I1.HTM |
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