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. The new tax rates will apply to sales, use, or distribution of these products, with the changes taking effect on August 1, 2025.

Additionally, the bill mandates that distributors, wholesalers, and retailers of liquid nicotine file returns with the Director of the Division of Taxation by the first day of the second month following the effective date. These returns must detail the inventory of liquid nicotine held by the businesses and include payment for the additional tax due. This requirement aims to ensure compliance with the new tax rates and facilitate proper tax administration.

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