A new bill introduced in the New Jersey Assembly could substantially lower the tax on cigars in the state.

Rep. Brian Bergen, R-Denville, has introduced A.B. 4936 which would introduce a tax cap of 50 cents per cigar for cigars sold in the state of New Jersey. This would keep New Jersey’s current tax rate of 30 percent of the wholesale price but would limit the total tax to no more than 50 cents per cigar.

It likely wouldn’t affect the price of cigars that have an MSRP of $3.34 or less because those cigars pay 50 cents or less in tax. But, for every other cigar—the vast majority of the cigars sold in the U.S.—there would be savings.

In New Jersey, a cigar with an MSRP of $9.50 likely costs around $12.35 before sales tax. That would change to $10.50 if A.B. 4936 is enacted.

The more expensive the cigar, the better the savings will be. A cigar with an MSRP of $15 will likely be reduced by $3.50 in retail price, while a cigar that has an MSRP of $20—which likely retails for around $26 in New Jersey—would cost $21 if the bill is passed.

A.B. 4936 currently has 11 total sponsors.

Charlie Minato

I am an editor and co-founder of halfwheel.com/Rueda Media, LLC. I previously co-founded and published TheCigarFeed, one of the two predecessors of halfwheel. I handle the editing of our written content, the majority of the technical aspects of the site and work with the rest of our staff on content management, business development and more. I’ve lived in most corners of the country and now entering my second stint in Dallas, Texas. I enjoy boxing, headphones, the Le Mans 24-hour, wearing sweatshirts year-round and gyros. echte liebe.