Sponsored by:
Assemblyman JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Imposes tax upon retail sales of liquid nicotine; repeals floor tax on liquid nicotine.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the taxation of liquid nicotine, amending P.L.1990, c.39 and P.L.2018, c.50, and repealing section 6 of P.L.2018, c.50.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1990, c.39 (C.54:40B-1) is amended to read as follows:
1. Sections 1 through 14 of P.L.1990, c.39 (C.54:40B-1 et seq.) shall be known and may be cited as the "Tobacco and Nicotine Products Excise Tax and Wholesale Sales and Use Tax Act."
(cf: P.L.2018, c.50, s.2)
2. Section 5 of P.L.2018, c.50 (C.54:40B-3.2) is amended to read as follows:
5. [a.] There is imposed a tax upon the sale [, use, or distribution] of all products containing liquid nicotine within this State by [a distributor or wholesaler to] a retail dealer [or] to a consumer at the rate of [$0.10 per fluid milliliter on the volume of the liquid nicotine as listed by the manufacturer, and a proportionate rate on all fractional parts of a fluid milliliter of volume of liquid nicotine as listed by the manufacturer] 3.5 percent of the retail sale price listed by the retail dealer for the product containing liquid nicotine.
[b. Unless liquid nicotine has already been or will be subject to the tax imposed in subsection a. of this section, if a distributor or wholesaler uses the liquid nicotine within the State, there is imposed upon the distributor or wholesaler a compensating use tax of $0.10 per fluid milliliter of the volume of liquid nicotine as listed by the manufacturer, and a proportionate rate on all fractional parts of a fluid milliliter of the volume of liquid nicotine as listed by the manufacturer.
c. Unless a tax is due pursuant to subsection b. of this section, if a distributor or wholesaler has not paid the tax imposed in subsection a. of this section upon a sale that is subject to the tax imposed in that subsection a., there is imposed upon the retail dealer or consumer chargeable for the sale a compensating use tax of $0.10 per fluid milliliter on the volume of the liquid nicotine as listed by the manufacturer, and a proportionate rate on all fractional parts of a fluid milliliter of the volume of liquid nicotine as listed by the manufacturer, which shall be collected in the manner provided in subsection b. of section 5 of P.L.1990, c.39 (C.54:40B-5).]
(cf: P.L.2018, c.50, s.5)
3. (New section) Within 90 days of the effective date of this act, the Director of the Division of Taxation shall refund the amount of any tax paid by a distributor, wholesaler, or retail dealer on liquid nicotine in the possession of the distributor, wholesaler, or retail dealer pursuant to section 6 of P.L.2018, c.50. The Director of the Division of Taxation shall not refund any tax paid pursuant to section 5 of P.L.2018, c.50 (C.54:40B-3.2) prior to the effective date of this act.
4. Section 6 of P.L.2018, c.50 is repealed.
5. This act shall take effect immediately.
STATEMENT
This bill imposes a 3.5 percent tax on the sale of all products containing liquid nicotine within this State by a retail dealer to a consumer. The bill is intended to replace the $0.10 per fluid milliliter tax upon liquid nicotine, which was approved by the Governor on July 1, 2018 as P.L.2018, c.50. The bill also repeals the temporary floor tax on liquid nicotine in the possession of the distributor, wholesaler, or retail dealer, which P.L.2018, c.50 imposed. The bill directs the Director of the Division of Taxation to refund the amount of any tax paid by a distributor, wholesaler, or retail dealer pursuant to section 6 of P.L.2018, c.50 within 90 days of the bill’s effective date.