Last week, a bill was introduced that would increase the tax rate for cigars sold in New Jersey from the current rate of 30 percent to 50 percent of the wholesale price.
Sen. Joe F. Vitale, D-Woodbridge, has introduced S. 4820, which would modify the state’s tax rates for other tobacco products, including cigars. Currently, a cigar is charged a state excise tax of 30 percent of its wholesale price, typically half of the MSRP. This means for a cigar with an MSRP of $9.50, the wholesale price is likely $4.75. That cigar is charged 30 percent of the $4.75, which would be $1.425. This is then added to the price a consumer pays, meaning that $9.50 cigar likely retails for $10.93 before the state’s 6.625 percent sales tax is added at the register.
If S. 4820 the tax would increase to $2.375, meaning the price would be $11.88 before sales tax.
In addition, S. 4820 would change the moist snuff tax rate from $.75 per ounce to $1.50 per ounce. Currently, the bill has no other sponsors; there does not appear to be a companion bill in the New Jersey General Assembly.
If passed, New Jersey would go from having the 13th-highest tax rate for cigars to the 7th-highest in the nation.
Trending Products
XIFEI Acrylic Humidor Jar with Humi...
Bald Eagle Cigar Humidor, Handmade ...
Boveda Main Collection
BAIHILIU Cigar Humidor for 20-30 Ci...
Triple Torch Lighter 5-in-1 with V ...
TOMOLO Cigar Lighter Triple Jet Fla...
Five Flags Windproof Torch Lighter ...
5-in-1 Torch Lighter with Cutter, P...
Butane Torch Lighter with V Cutter,...