Bill

Bill > A4132


NJ A4132

Imposes $0.10 per fluid milliliter tax related to sales of liquid nicotine.


summary

Introduced
06/11/2018
In Committee
06/18/2018
Crossed Over
06/21/2018
Passed
06/21/2018
Dead
Signed/Enacted/Adopted
07/01/2018

Introduced Session

2018-2019 Regular Session

Bill Summary

This bill extends the New Jersey tobacco products wholesale sales and use tax to liquid nicotine used in electronic cigarettes and similar devices, at the rate of $0.10 per milliliter of liquid nicotine. Electronic cigarettes and similar tobacco-substitute smoking devices are designed to deliver liquid nicotine to users of the product. The term "liquid nicotine" is defined in the bill to mean any solution containing nicotine that is designed or sold for use with an electronic smoking device. The bill imposes the tax at the rate of $0.10 per milliliter of liquid nicotine, and a proportionate rate on fractional parts of a milliliter of liquid nicotine, as listed by the manufacturer. The tax is imposed on the sale, use, or distribution of liquid nicotine within this State by a distributor or wholesaler to a retailer dealer or consumer. However, distributors and wholesalers who sell liquid nicotine at retail or otherwise use the liquid nicotine are required to pay a compensating use tax at the same rate. Finally, each wholesaler, distributor, and retail dealer is required to take a physical inventory of all liquid nicotine in that entity's possession in the State at the close of business on the first day of the first month next following the date of enactment, or such other date as permitted by the Director of the Division of Taxation in the Department of the Treasury, and is required file a return with the director, by the twentieth day of the third month next following the date of enactment, that indicates the amount of liquid nicotine in that entity's possession and then pay to the director the tax the amount of tax due on the liquid nicotine.

AI Summary

This bill extends the New Jersey tobacco products wholesale sales and use tax to liquid nicotine used in electronic cigarettes and similar devices, at the rate of $0.10 per milliliter of liquid nicotine. The bill defines "liquid nicotine" as any solution containing nicotine that is designed or sold for use with an electronic smoking device. The tax is imposed on the sale, use, or distribution of liquid nicotine within the state by a distributor or wholesaler to a retailer or consumer. Distributors and wholesalers who sell or use the liquid nicotine are also required to pay a compensating use tax at the same rate. Additionally, distributors, wholesalers, and retail dealers must take a physical inventory of their liquid nicotine holdings and file a return with the state, paying the applicable tax, within the first three months after the bill's enactment.

Committee Categories

Budget and Finance

Sponsors (5)

Last Action

Approved P.L.2018, c.50. (on 07/01/2018)

bill text


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