New Jersey Imposes Tax on Liquid Nicotine

New Jersey will tax liquid nicotine at a rate of $0.10 per fluid milliliter. Enacted legislation imposes the tobacco products wholesale sales and use tax on liquid nicotine used in electronic cigarettes and similar devices. A proportionate rate is imposed on fractional parts of a milliliter of liquid nicotine.

Imposition of Tobacco Tax

The tobacco sales and use tax is imposed on the sale, use, or distribution of liquid nicotine within New Jersey. Taxable sales are made by a distributor or wholesaler to a retail dealer or consumer.

Distributors and wholesalers are required to pay a compensating use tax at the same rate if they:

  • sell liquid nicotine at retail; or
  • otherwise use the liquid nicotine .

Liquid Nicotine

“Liquid nicotine” means a solution containing nicotine that designed or sold for use with an electronic smoking device.

Electronic Smoking Device

“Electronic smoking device” means a nonlighted, noncombustible device that uses a mechanical heating element, battery, or circuit, to produce vaporized nicotine for inhalation. It includes:

  • e-cigarettes;
  • e-cigars;
  • e-pipes;
  • e-hookahs;
  • vape pens;or
  • other similar product.

Ch. 50 (A.B. 4132), Laws 2018, effective September 30, 2018

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