This bill proposes a phased increase in the cigarette tax rate in New Jersey over a four-year period, starting from July 1, 2024. The current tax rate of $0.135 per cigarette will be raised incrementally, reaching $0.20 per cigarette by July 1, 2027. Specifically, the tax will increase to $0.1625 in 2024, $0.175 in 2025, $0.1875 in 2026, and finally to $0.20 in 2027. This change will result in the price of a pack of 20 cigarettes rising from $2.70 to $4.00 over the same period.

Additionally, the bill mandates that licensed retail dealers and distributors file returns with the Director of the Division of Taxation on specific dates each year, detailing the amount of cigarettes in their possession and paying the corresponding tax. The bill does not alter existing provisions that allocate a portion of cigarette tax revenues for smoking cessation initiatives and the Health Care Subsidy Fund. The new tax rates and filing requirements are designed to enhance state revenue while maintaining support for health-related programs.

Statutes affected:
Introduced: 54:40A-8