Last month, two bills were introduced in the New Jersey legislature that would have raised the tax on cigars from 30 percent of the wholesale price to 90 percent. Now, there’s another set of proposals, this time increasing it form 30 percent of the wholesale price to $2.70 per cigar. The two bills—A1832 and S1867—would increase the tax on other tobacco products from 30 to 68 percent, although most of the products would have more specific rates. For cigars, that would be $2.70 per cigar. A cigar with a suggested retail price of $9.50 likely retails for around $12.35 due to the tax in New Jersey. If the new tax were passed, this would increase the price to $14.90. But where the cigar is particularly crippling is to any cigar that retails for less than $5. A cigar with a suggested retail price of $4.50 likely retails in New Jersey for around $5.85, but with the new tax this could be as high as $9.90. taxes on snuff would increase from 75 cents to $2.25 per ounce, taxes on cigarillos would be 54 cents per cigarillo, while little cigars would be taxed at 13.5 cents per cigar. Pipe tobacco would ...
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