Discount cigarette tobacco

NEW JERSEY: Tobacco Tax: Rules on Cigarette Tax Act Readopted and Amended

Various rules regarding the New Jersey cigarette tax that were slated to expire on june 6,2004, are readopted and amended to conform to the Cigarette Tax Act.

The rules reflect the increase in the cigarette tax from $1.50 to $2.05 per pack of 20 cigarettes, which took effect july 1, 2003, pursuant to Ch. 115 (A.B. 3711), Laws 2003.

The rules also are amended to reflect changes in the denominations of cigarette revenue tax stamps as follows: (1) Heat decalcomania tax stamps applied by machine in denominations of $2.05 (formerly, 4O??) are sold only in multiples of 30,000 stamps. (2) Heat decalcomania tax stamps applied by machine in denominations of $2.5625 (formerly, 5O??) are sold only in multiples of 7,200 stamps. (3) Heat decalcomania tax stamps applied by hand in denominations of $1.025 (formerly, 2O??), $2.05 (formerly, 4O??), and $2.5625 (formerly, 5O??) are sold in blocks of individual sheets of 100 stamps and only multiples of 1,000 stamps.

The following stamp discounts are allowed on all sales of tax stamps to licensed distributors: (1) A discount of 0.0023707% (formerly, 0.01215%) is allowed on all sales of hand-applied tax stamps in denominations of $1.025 when the number purchased is 1,000 stamps or more. (2) A discount of 0.0021951% (formerly, 0.01125%) is allowed on all sales of hand-applied tax stamps in denominations of $2.05 when the number purchased is 1,000 stamps or more, or in multiples of 30,000 stamps for machine-applied stamps. (3) A discount of 0.0017561% (formerly, 0.009%) is allowed on all sales of hand-applied tax stamps in denominations of $2.5625 when the number purchased is 1,000 stamps or more, or in multiples of 7,200 stamps for machine-applied stamps.

The Attorney General or other legal representative of the State of New Jersey may inspect the reports, records, and files of any tobacco product distributor or manufacturer for any period in which they are not in compliance with the Act. Licensed distributors and other entities will be penalized for stamping, selling, or offering for sale cigarettes of tobacco product manufacturers who are not in compliance with the law. (N.J.A.C. 18:5-2.3, 3.2, 3.4, 5.3, 5.5, 6.2, 6.27, 8.4, and 8.8, New Jersey Division of Taxation, effective April 19, 2004.)