Bill > S2731

Introduced Session

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 $0.20 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 $0.20 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.

Committee Categories

Paul Sarlo (D)*, 

Substituted by A4132 (1R) (on 06/21/2018)