Things could get ugly in the state of New Jersey if S284 gets passed. The bill sponsored by Joseph Vitale (D-Middlesex) and Loretta Weinber (D-Bergen) calls for the raising of the OTP tax which includes cigars from 30% to 90% of the wholesale price. Meaning a cigar with the MSRP of $10.00 that currently costs $11.50 in the state would go up to $14.50 per cigar.
In addition to hurting the consumer, the bill would be crippling to tobacco shops as the bill calls for a floor tax. This means that retailers would have to pay the additional tax on products that are already in stock and was taxed at the lower rate.
The bill looks to bring the taxes in line with cigarette taxes and the money raised would go to the states Smoking Use Cessation Fund.
If the measure is passed it would take to effect immediately.
