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," which is a tobacco-free pouch containing nicotine intended for oral use. This inclusion ensures that these products are explicitly recognized under the tobacco wholesale tax framework.

Furthermore, the bill mandates that distributors, wholesalers, and retail dealers file 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 in response to evolving tobacco product markets and to enhance state revenue from these products.

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