Bill Text: NJ A4080 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides phased-in increases in cigarette tax rate over four-year period.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-03-18 - Introduced, Referred to Assembly Health Committee [A4080 Detail]
Download: New_Jersey-2024-A4080-Introduced.html
Sponsored by:
Assemblywoman ALIXON COLLAZOS-GILL
District 27 (Essex and Passaic)
SYNOPSIS
Provides phased-in increases in cigarette tax rate over four-year period.
CURRENT VERSION OF TEXT
As introduced.
An Act providing for phased-in increases in the cigarette tax rate over a four year period and amending P.L.1948, c.65.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 301 of P.L.1948, c.65 (C.54:40A-8) is amended to read as follows:
301. Tax imposed; rate. A tax is hereby imposed on the sale, use or possession for sale of use within this State of all cigarettes at the rate of:
a. $0.135 for each cigarette beginning on July 1, 2009, but before July 1, 2024;
b. $0.1625 for each cigarette beginning on July 1, 2024, but before July 1, 2025;
c. $0.175 for each cigarette beginning on July 1, 2025, but before July 1, 2026;
d. $0.1875 for each cigarette beginning on July 1, 2026, but before July 1, 2027; and
e. $0.20 for each cigarette beginning on July 1, 2027.
(cf: P.L.2009, c.70, s.1)
2. (New section) a. Each licensed retail dealer under P.L.1948, c.65 (C.54:40A-1 et seq.), shall, on or before September 1, 2024, September 1, 2025, September 1, 2026, and September 1, 2027, respectively, file a return under oath or certified under the penalties of perjury with the Director of the Division of Taxation in the Department of the Treasury on forms furnished by the director, showing the amount of cigarettes in the licensed retail dealer's possession in the State at 12:01 a.m. on July 1 of each year referenced hereinabove, and shall at the time of filing that return pay the tax to the director. Failure to obtain such forms shall not be an excuse for the failure to make a return containing the information required by the director.
b. Notwithstanding the provisions of section 401 of P.L.1948, c.65 (C.54:40A-11) to the contrary, each licensed distributor and licensed wholesale dealer under P.L.1948, c.65 (C.54:40A-1 et seq.), shall, on or before September 1, 2024, September 1, 2025, September 1, 2026, and September 1, 2027, respectively, file a return under oath or certified under the penalties of perjury with the director on forms furnished by the director, showing the amount of cigarettes in the dealer's or wholesaler's possession in the State at the close of business prior to July 1 of each respective year referenced hereinabove. An amount of tax shall be due equal to the additional tax on the number of cigarettes bearing stamps, and unaffixed stamps on hand. Each licensed distributor and licensed wholesale dealer shall at the time of filing that return pay the tax to the director. Failure to obtain such forms shall not be an excuse for the failure to make a return containing the information required by the director.
3. This act shall take effect July 1, 2024.
STATEMENT
This bill provides for a phased-in increase in the cigarette tax rate over a four-year period.
Under current law, the State imposes a tax on cigarettes at a rate of $0.135 per cigarette, or $2.70 per pack of 20 cigarettes, which tax rate has been in effect since 2009. This bill would increase this tax rate over a four-year period, as follows:
(1) beginning on July 1, 2024, the cigarette tax rate would increase by 55 cents to $3.25 per pack of 20 cigarettes;
(2) beginning on July 1, 2025, the cigarette tax rate would increase an additional 25 cents to $3.50 per pack of 20 cigarettes;
(3) beginning on July 1, 2026, the cigarette tax rate would increase an additional 25 cents to $3.75 per pack of 20 cigarettes effective July 1, 2026; and
(4) beginning on July 1, 2027, the cigarette tax rate increases an additional 25 cents to $4.00 per pack of 20 cigarettes, which rate would remain in effect each year thereafter.
Current law dedicates one percent of cigarette tax revenues for smoking cessation and prevention initiatives funded through the Department of Health and $391.5 million in cigarette tax revenues to the Health Care Subsidy Fund for payments to acute care hospitals in New Jersey that provide necessary inpatient and outpatient services to patients regardless of ability to pay. This bill does not alter these dedications. Accordingly, any additional revenue collections resulting from the proposed increases in the cigarette tax would be received in the General Fund as State revenue, except as otherwise dedicated for these purposes.
