The growing e-cigarette industry is waging a battle against New Jersey's hefty proposed tax on the devices, worrying that such a levy could set a precedent as states start to grapple with the new products.

Gov. Chris Christie and some New Jersey legislators say they want to place a 75% wholesale tax on e-cigarettes and some related gear, mirroring what New Jersey charges on traditional smokes, currently $2.70 for a pack of 20.

No...