This bill amends the "Unfair Cigarette Sales Act of 1952" by increasing the presumed "cost of doing business by the retailer" from eight percent to 16 percent of the "basic cost of cigarettes" to the retailer. The changes include new legal language that specifies the costs to be included in the calculation, such as labor, rent, depreciation, and various operational expenses. Additionally, for retailers receiving both retailer and wholesaler discounts, the bill mandates that the cost of doing business includes the wholesaler's costs as well.

The intent of this legislation is to modernize the calculation of retailers' presumed operating costs, reflecting the impact of inflation and rising overhead expenses. By updating the presumed mark-up margin, the sponsors believe that the new percentage will provide a more accurate foundation for determining minimum retail prices for cigarettes, ensuring that retailers can adequately cover their costs while remaining compliant with the law. The bill is set to take effect on the first day of the third month following its enactment.

Statutes affected:
Introduced: 56:7-21