New Jersey Bill Seeks to Cap Cigar Tax

A bill has been introduced that would limit the state taxes on cigars sold in the state of New Jersey.

If passed, S.B. 2765 would limit the tax on cigars at no more than 50 cents per cigar. Currently, cigars are taxed at 30 percent of the wholesale price in the state of New Jersey.

The 30 percent tax means that S.B. 2765 would likely affect any cigar with an MSRP of $3.40 or more. Any cigar that is priced over $9 at the register in New Jersey will likely drop at least $1 per halfwheel estimates.

For example, a cigar with an MSRP of $9.50 likely sells for around $12.35 right now, it would sell for $10.50 if passed.

Sen. Paul A. Sarlo,  D-Woodridge, and Sen. Anthony R. Bucco, R-Denville, are listed as co-sponsors of S.B. 2765.

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 have written about the cigar industry for more than a decade, covering everything from product launches to regulation to M&A. In addition, I handle a lot of the behind-the-scenes stuff here at halfwheel. I enjoy playing tennis, watching boxing, falling asleep to the Le Mans 24, wearing sweatshirts year-round and eating gyros. echte liebe.