UPDATES FROM CASAA's WEBSITE:

NEWLY PROPOSED A4391 - CLICK HERE TO GO TO CASAA'S WEBSITE
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, A4913 provides for refunds of taxes collected under the current law.


NEWS ON A4132 - CLICK HERE TO GO TO CASAA'S WEBSITE
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 (cigalikes) 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.