Levies an additional tax on certain tobacco products and levies a tax on vapor products and electronic cigarettes
Impact
The impact of HB 427 is significant as it aims to generate increased revenue for the state and lower tobacco usage through higher costs. The legislation is seen as an avenue to fund health initiatives and tobacco regulation enforcement. By raising these taxes, supporters argue that it will help discourage tobacco consumption, particularly among youth, contributing to public health goals. Conversely, critics may argue that increased taxes could lead to economic burdens on local businesses and individuals who consume these products.
Summary
House Bill 427 aims to increase the tax rates on various tobacco products, which includes cigars, cigarettes, smokeless tobacco, and introduce a new tax on vapor products and electronic cigarettes. The proposed changes raise the tax on cigars invoiced at $120 per thousand from 8% to 16%, and for those invoiced at more than $120 from 20% to 40%. Cigarette taxes will rise from 36 cents per pack to $1.08, and the tax rate on smoking tobacco will increase from 33% to 66%. Additionally, an excise tax of five cents per milliliter will be levied on vapor products and electronic cigarettes. These adjustments are set to take effect on July 1, 2015.
Sentiment
The sentiment surrounding HB 427 appears to be mixed. Proponents, including public health advocates, are likely to view the bill positively, seeing it as a necessary move to curb tobacco usage, fund health programs, and promote a healthier population. Detractors, including some consumers and retailers, may express concerns about the economic implications of increased taxes on essential goods, fearing potential declines in sales and increased smuggling of tobacco products.
Contention
Notable points of contention include the extent to which higher taxes will effectively reduce tobacco consumption and the potential impact on state revenue collection. Proponents argue that the long-term health benefits and reduced healthcare costs will outweigh short-term economic drawbacks, while opponents fear it may unfairly impact lower-income individuals and lead to a black market for tobacco products. The debate reflects broader discussions about public health policy, individual choice, and state revenue needs.
Continues a portion of the excise tax levied on cigarettes in statute and authorizes a reduced excise tax rate on certain tobacco products (OR DECREASE GF RV See Note)
(Constitutional Amendment) Levies an additional tax on cigarettes and other tobacco products and authorizes the dedication of such monies (OR +$64,000,000 GF RV See Note)
Requires school districts to provide instruction on dangers of electronic cigarette usage as part of New Jersey Student Learning Standards in Comprehensive Health and Physical Education.
Requires school districts to provide instruction on dangers of electronic cigarette usage as part of New Jersey Student Learning Standards in Comprehensive Health and Physical Education.