Bill > S4505

Introduced Session

This bill provides for a phased-in increase in the cigarette tax rate over a four-year period. Under current law, the State imposes a tax on cigarettes at a rate of $0.135 per cigarette, or $2.70 per pack of 20 cigarettes, which tax rate has been in effect since 2009. This bill would increase this tax rate over a four-year period, as follows:(1) beginning on July 1, 2024, the cigarette tax rate would increase by 55 cents to $3.25 per pack of 20 cigarettes;(2) beginning on July 1, 2025, the cigarette tax rate would increase an additional 25 cents to $3.50 per pack of 20 cigarettes; (3) beginning on July 1, 2026, the cigarette tax rate would increase an additional 25 cents to $3.75 per pack of 20 cigarettes effective July 1, 2026; and(4) beginning on July 1, 2027, the cigarette tax rate increases an additional 25 cents to $4.00 per pack of 20 cigarettes, which rate would remain in effect each year thereafter. Current law dedicates one percent of cigarette tax revenues for smoking cessation and prevention initiatives funded through the Department of Health and $391.5 million in cigarette tax revenues to the Health Care Subsidy Fund for payments to acute care hospitals in New Jersey that provide necessary inpatient and outpatient services to patients regardless of ability to pay. This bill does not alter these dedications. Accordingly, any additional revenue collections resulting from the proposed increases in the cigarette tax would be received in the General Fund as State revenue, except as otherwise dedicated for these purposes.

AI Summary

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Joe Vitale (D)*, 

Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee (on 05/22/2025)

Official Document