New Jersey Assembly Bill A4080

New Jersey 2024-2025 Regular Session

• Introduced: 3/18/24
• Refer: 3/18/24

Caption

Provides phased-in increases in cigarette tax rate over four-year period.

Impact

This bill will impact state laws by amending the existing tax framework surrounding cigarette sales, directly affecting both distributors and retailers. The increase in tax is expected to raise significant revenue for the State, particularly benefiting the General Fund. Notably, the current law ensures that a portion of the existing cigarette tax revenue is allocated to smoking cessation initiatives and healthcare funding. A4080 does not alter these existing dedications, meaning that additional revenues will also contribute to these vital public health programs.

Summary

Assembly Bill A4080 proposes a phased-in increase in the cigarette tax rate over a four-year period, aiming to enhance state revenue while addressing public health concerns. Under the current law, the tax rate is set at $0.135 per cigarette, which has remained unchanged since 2009. A4080 seeks to incrementally raise this rate, starting from $3.25 per pack in 2024, reaching up to $4.00 per pack by 2027. This strategic increase aligns with efforts to encourage smoking cessation and promote healthier lifestyles among the population.

Contention

While supporters argue that increasing the cigarette tax is a necessary step towards reducing smoking rates and improving public health, opponents may raise concerns about the burden on consumers and the potential impacts on smoking-related businesses. Raising the tax could lead to non-compliance or illegal trade, as consumers might seek cheaper alternatives or purchase cigarettes from outside the state. These points of contention are critical as legislators weigh the potential benefits against the negative economic implications for both consumers and businesses involved in the sale of tobacco products.