This bill proposes an increase in the tax rates on liquid nicotine and container e-liquid in New Jersey, as part of the Governor's Fiscal Year 2026 Budget recommendations. Specifically, the tax on liquid nicotine will rise from $0.10 to $0.30 per fluid milliliter, and the tax on container e-liquid will increase from 10 percent to 30 percent of the listed retail sale price. These changes are reflected in the amendments to Section 5 of P.L.2018, c.50 and Section 5 of P.L.2019, c.147, where the previous tax rates are deleted and replaced with the new rates.

Additionally, the bill introduces new requirements for distributors, wholesalers, and retailers of liquid nicotine. They will be mandated to file returns with the Director of the Division of Taxation by the first day of the second month following the bill's effective date, detailing their inventory of liquid nicotine and the corresponding tax due. The provisions of this bill are set to take effect on August 1, 2025.

Statutes affected:
Introduced: 54:40B-3.2, 54:40B-3.4