Bergen bill would cut cigar tax

Assemblyman Brian Bergen (R-Denville) introduced a bill that would severely reduce the tax on cigars sold in New Jersey stores.

“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,” Bergen said. “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.”

Bergen’s bill would cap that tax at 50 cents per cigar, a move he said would help the state’s tobacco shops compete with ones across the Delaware River.

“While we can’t completely snuff out the competition, we can do something to encourage residents to shop from local independent cigar retailers,” said Bergen. “We must cut the tax if we want cigar smokers to spend more of their money in New Jersey.”