TRENTON, N.J. – Pennsylvania is one of only two U.S. state that doesn’t tax tax medium-to-large premium cigars. Assemblyman Brian Bergen (R-25) says New Jersey’s wholesale cigar tax needs to go so that New Jersey can compete with the approximately 200 PA cigar retailers located near the border of the two states.
“New Jersey currently taxes cigars at 30 percent of the wholesale price with no cap. Just across the border, Pennsylvania sells cigars with zero tax. We have fantastic tobacco shops and local cigar bars that offer hand-rolled and high-quality products, but they are having a hard time competing with our neighboring state because of costs,” said Bergen on Thursday.
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If it advances in the legislature, Assemblyman Bergen’s bill would cap cig taxation to 50 center per cigar under the Tobacco and Vapor Products Tax Act.
“While we can’t completely snuff out the competition, we can do something to encourage residents to shop from local independent cigar retailers,” added Bergen. “We must cut the tax if we want cigar smokers to spend more of their money in New Jersey. If we cut the cigar tax, we would see an increase in sales tax revenue because people would purchase more in the state,” explained Bergen. “Our excessive tax is only hurting small businesses and our opportunity to realize additional revenue.”
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