This bill proposes significant changes to the taxation of tobacco and nicotine products in New Jersey. It increases the tax rate on tobacco products from 30% to 50% of the wholesale price and raises the tax on moist snuff from $0.75 to $1.50 per ounce. Additionally, the bill introduces a new definition for "oral nicotine pouch," categorizing it as a tobacco product subject to the wholesale tax. This definition clarifies that oral nicotine pouches are tobacco-free pouches containing nicotine, commonly marketed under brand names like ZYN.

Furthermore, the bill mandates that distributors, wholesalers, and retail dealers submit inventory reports to the state by the first day of the second month following the enactment of the bill. They will be required to pay the increased tax rates on any tobacco products and moist snuff held in inventory at the time the new tax rates take effect. The changes aim to modernize the tax structure for tobacco products and ensure that newer products like oral nicotine pouches are included in the tax framework.

Statutes affected:
Introduced: 54:40B-2, 54:40B-3, 54:40B-3.1