Official Site of The State of New Jersey

Tobacco and Vapor Products Tax Overview

Description
The Tobacco and Vapor Products Tax is imposed on the sale of tobacco and nicotine products, other than cigarettes, by a distributor or a wholesaler to a retail dealer or consumer. Cigarettes are exempt from this tax.

P.L. 2019, c. 147, signed into law on June 30, 2019, amends the Tobacco and Nicotine Products Wholesale Sales and Use Tax Act now named the Tobacco and Vapor Products Tax Act (N.J.S.A. 54:40B-1 et seq.). The amendments impose a 10 percent tax on the retail sale of container e-liquid. The law exempts container e-liquid from the 10-cent per fluid milliliter wholesale Liquid Nicotine Tax (N.J.S.A. 54:40B-3.2). Container e-liquid cannot be sold at retail stores in New Jersey except by a licensed vapor business.

Rate
The Tobacco and Vapor Products Tax is imposed at the rate of 30% on the wholesale price the distributor pays to buy the products from the manufacturer.

Distributors and wholesalers who also sell tobacco prod­ucts at retail or otherwise use the tobacco products must pay a compensating use tax of 30% measured by the sales price of a similar tobacco product to a distributor.

The Tobacco and Vapor Products Tax on moist snuff is imposed upon the sale, use, or distribution of moist snuff within New Jersey by a distributor or wholesaler to a retail dealer or consumer at the rate of $0.75 per ounce on the net weight as listed by the manufacturer and a proportionate rate on all fractional parts of an ounce of the net weight of moist snuff.

Distributors and wholesalers who also sell moist snuff at retail or otherwise use the moist snuff must pay a compensating use tax at the rate of $0.75 per ounce of moist snuff, with a proportionate tax rate for fractional parts of an ounce of the net weight of moist snuff.

Tobacco and Vapor Products Tax on liquid nicotine is imposed upon the sale, use, or distribution of liquid nicotine within New Jersey by a distributor or wholesaler to a retail dealer or consumer at the rate of $0.10 per fluid milliliter based 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.

Distributors and wholesalers who also sell liquid nicotine at retail or otherwise use the liquid nicotine must pay a compensating use tax at the rate of $0.10 per fluid milliliter based on the volume of the liquid nicotine, with a proportionate tax rate for fractional parts of a fluid milliliter of volume of liquid nicotine.

Effective November 1, 2019, the Tobacco and Vapor Products Tax on container e-liquid is imposed upon the sale of container e-liquid within New Jersey by a retail dealer at the rate of 10 percent of the retail sales price. The law exempts container e-liquid from the 10-cent per fluid milliliter wholesale Liquid Nicotine Tax (N.J.S.A. 54:40B-3.4).

Disposition of Revenues
Revenues are deposited in the State Treasury for general State use.

Tobacco and Vapor Products Subjected to Sales Tax