(Update – 09.17.18)

On Thursday, September 13, Assembly Member John Burzichelli (D-03) introduced A4391, which would repeal the floor tax and change the tax on nicotine-containing vapor products from 10c/ml to a 3.5% retail tax. The bill is assigned to the Assembly Committee on Appropriations. Asm. Burzichelli is the chairman of this committee.

Although CASAA considers any extra tax on vapor products to be unjustifiable, A4391 is a response to a tax structure (10c/ml) that will punish New Jersey vapor consumers and put specialty retailers at an unfair competitive disadvantage. With just under two weeks before the current tax takes effect, A4391 provides for refunds of taxes collected under the current law.

Please take a few minutes today and send a message to your New Jersey lawmakers urging them to support A4391.

Take Action – Send a Message!

(Update – 07.02.18)

On June 21st, the New Jersey legislature passed A4132 (1R) which would enact a 10c/mL tax on e-liquid containing nicotine. This bill also requires wholesalers, distros, and retailers to pay a one-time inventory tax (also referred to as a floor tax) on the nicotine-containing e-liquid they have in stock on the first day of the first month after enactment. (However, this deadline is at the discretion of the Director of Taxation and there is a possibility that it will not be strictly enforced.)

On Sunday, July 1st,, with a government shutdown looming, Governor Murphy signed A4132 (1R) and the state’s budget into law. The signing of A4132 on July 1st is significant because of the floor tax. At the very least, vapor businesses in New Jersey have a full month to prepare for a 10c/mL tax on all nicotine-containing e-liquid they have in their inventory as of August 1st, 2018.

CASAA has become aware that an effort is underway by industry stakeholders to work with leadership in the general assembly to establish a different tax rate that is more equitable for both sellers of closed systems (cig-a-likes) and open system products (bottled e-liquid). A. 4132 was amended in committee to include a 90-day effective date so that stakeholders and lawmakers could have time to discuss alternative tax schemes and work toward something that is fair.

While CASAA acknowledges that steps are being taken to mitigate the worst parts of the vapor tax in New Jersey, we must remind all stakeholders that the only appropriate extra tax on low-risk, smoke-free products is $0.00.

Although industry stakeholders and lawmakers appear to have settled on some sort of tax being imposed on vapor products, this is still an opportunity to engage with legislators and share our experiences. Please take a moment today to “thank or spank” New Jersey lawmakers based on their vote for or against the vapor tax.

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(Update – 06.16.18)

Two versions of the vapor tax are reportedly racing toward floor votes.

A 4132 – Would enact a tax of 10c/mililiter on e-liquid containing nicotine.

S 2731 – Would enact a tax of 20c/milliliter on e-liquid containing nicotine.

Both of these bills are likely to be heard in their respective budget committees on Monday, June 18th. NOW (this weekend) IS THE TIME TO MAKE CALLS AND SEND EMAILS urging lawmakers to reject these bills!

Please call:

Assembly Budget Committee Chair, Eliana Pintor Marin

(973) 589-0713

Senate Budget Committee Chair, Paul Sarlo

(201) 804-8118

Points to discuss on your call:

Tell them you are opposed to A.4132 and S.2731 and any bill that would impose extra taxes on low-risk vapor products. Urge both of the committee chairs to withdraw their bills.

This legislation unfairly favors products made by large tobacco companies sold in C-stores and gas stations. This puts independent vape shops in danger of closing, which means consumers lose a valuable community resource.

By making vapor products less affordable and less available, this legislation would make it more likely that people would return to smoking.

Share your story about switching to vaping. If a local vape shop is playing a role in helping you live smoke-free, share that too.

If the voicemail boxes are full, please send an email instead:

Take Action – Send a Message

(Update – 06.15.18)

It has come to CASAA’s attention that the tax bill, A.4321 (details below), is being added to the agenda for

Monday, June 18, 2018

1:00 PM (changed)

Assembly Budget Committee

Room 11, 4th Floor

State House Annex

Trenton

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Take Action – Send a Message

(Update – 06.13.18)

The proposal to tax the living daylights out of vapers in New Jersey is shifting to a 10¢ per milliliter tax on e-liquid containing nicotine. While this is effectively a tax reduction for small, closed system devices compared to the governor’s 75% wholesale tax proposal, those who use bottled e-liquid will be paying the lion’s share of the tax.

A.4132, introduced by Assembly Member Eliana Pintor Marin (D-A029), would also impose a one-time floor tax on wholesalers, distributors, and retailers when the bill becomes effective. A similar measure in Pennsylvania forced dozens of vapor shops to close within months of taking effect and put dozens more at risk of going out of business within the following year.

A.4132 has been referred to the Assembly Budget Committee. At the time of this post, there is no hearing scheduled for this bill. The Asm. Budget Committee meeting for this week (Thursday, June 14) is cancelled.

Take Action – Send a Message

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Text of A.4132

(Update – 04.23.18)

Public hearings regarding New Jersey’s FY2019 budget have concluded, but the Assembly and Senate Budget Committees are still discussing the details. By all accounts, a 75% wholesale tax on vaping is still on the table.

Now is the time to reach out to Budget Committee members and urge them to oppose this crippling tax on safer nicotine products

Take Action – Send a Message

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(Original Post – 03.21.18)

On March 13th, New Jersey Governor Phil Murphy announced his budget proposal for FY 2019. The governor’s first budget includes a new 75% wholesale tax on vapor products and a tax hike for smokeless tobacco raising it from 30% to 68% of wholesale. CASAA has been informed that the rates for these taxes come from bills in the House (A.1586) and Senate (S.1184).

The budget process in New Jersey includes two public hearings by the budget committees in both houses. If you are interested in participating, you can register to speak here.

Time for presenting testimony will likely be limited to five minutes, so please plan accordingly. Budget committee members tend to ask questions and you should be prepared to answer or defer to someone you know will be speaking later. If you would like some ideas on points to make in your testimony, please see our talking points on state taxes here.

The dates and times for the public hearings are listed below.

Assembly Budget Public Hearings

WEDNESDAY, MARCH 28, 2018

9:30 AM

PUBLIC HEARING

State House Annex, Committee Room 11, 4th Floor

Trenton, New Jersey

MONDAY, APRIL 9, 2018

9:30 AM

PUBLIC HEARING

State House Annex, Committee Room 11, 4th Floor

Trenton, New Jersey

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Senate Budget Public Hearings

THURSDAY, MARCH 29, 2018

10:00 AM

PUBLIC HEARING

New Jersey Institute of Technology

Campus Center Atrium, 150 Bleeker Street

Newark, New Jersey

TUESDAY, APRIL 3, 2018

10:00 AM

PUBLIC HEARING

Rowan University

Engineering Hall, Room 320, 600 North Campus Drive

Glassboro, New Jersey

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