NJ Governor Resorts to E-Cigarette Tax to Plug Deficit

Facing a $1 billion shortfall, tax would generate an estimated $35 million for the state.

May 06, 2014

TRENTON, N.J. – Facing a budget shortfall of more than $1 billion, New Jersey Governor Chris Christie is proposing a new tax on e-cigarettes to help close the gap, according to a report from Bloomberg News. The estimated $35 million in annual revenue would be used for general spending by the state.

The New Jersey Legislature already treats e-cigarettes as equivalent to conventional ones for purposes such as restricting sales to minors and smoke-free air laws. According to N.J. State Treasurer Andrew Sidamon-Eristoff, the motivation for the proposed tax on vapor cigarettes was public health.

“Tax parity is the logical next step,” said Sidamon-Eristoff. “Why should we favor one form of … tobacco-derived nicotine over another?”

The proposed tax highlights Christie’s struggle to return the state to fiscal stability. The 51-year-old Republican is trying to persuade Democratic lawmakers to trim spending after his administration overestimated revenue projections for three straight years.

Advertisement
Advertisement
Advertisement