Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
Increases cigarette tax rate from $2.70 to $3.00 per pack.
CURRENT VERSION OF TEXT
As introduced.
An Act increasing the cigarette tax rate, and amending P.L.1948, c.65.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 301 of P.L.1948, c.65 (C.54:40A-8) is amended to read as follows:
301. Tax imposed; rate. A tax is hereby imposed on the sale, use or possession for sale or use within this State of all cigarettes at the rate of [$0.135] $0.15 for each cigarette.
(cf: P.L.2009, c.70, s.1)
2. (New section) a. Each licensed retail dealer under P.L.1948, c.65 (C.54:40A-1 et seq.) shall, on or before the first day of the second month after the effective date of P.L. , c. (pending before the Legislature as this bill), file a return under oath or certified under the penalties of perjury with the director on forms furnished by the director, showing the number of cigarettes in the licensed retail dealer’s possession in the State at :12:01 a.m. on the effective date of P.L. , c. (pending before the Legislature as this bill) and shall at the time of filing that return pay the tax to the director. Failure to obtain such forms shall not be an excuse for the failure to make a return containing the information required by the director.
b. Notwithstanding the provisions of section 401 of P.L.1948, c.65 (C.54:40A-11) to the contrary, each licensed distributor and licensed wholesale dealer under P.L.1948, c.65 (C.54:40A-1 et seq.) shall, on or before the first day of the second month after the effective date of P.L. , c. (pending before the Legislature as this bill), file a return under oath or certified under the penalties of perjury with the director on forms furnished by the director, showing the amount of cigarettes in the dealer’s or wholesaler’s possession in the State at the close of business prior to the effective date of P.L. , c. (pending before the Legislature as this bill). An amount of tax shall be due equal to the additional tax on the number of cigarettes bearing stamps, and unaffixed stamps on hand. Each licensed distributor and licensed wholesale dealer shall at the time of filing that return pay the tax to the director. Failure to obtain such forms shall not be an excuse for the failure to make a return containing the information required by the director.
3. This act shall take
effect on August 1, 2025.
STATEMENT
This bill increases the rate of tax imposed on cigarettes, as recommended as part of the Governor’s Fiscal Year 2026 Budget.
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 to $0.15 per cigarette, or $3.00 per pack of 20 cigarettes, and would take effect on August 1, 2025.
The Governor’s Fiscal Year 2026 Budget recommendations include the enactment of legislation to increase the cigarette tax rate by $0.30 per pack of 20 cigarettes. This bill is intended to implement this recommendation.