NJ A1046

Caps the New Jersey tobacco and vapor products tax on cigars at a maximum of $0.50 per cigar, while maintaining the existing 30 percent wholesale price tax rate for amounts below the cap

Adds a formal definition of "cigar" to state tax law as any roll of tobacco wrapped in leaf tobacco or tobacco-containing material, offered to consumers without a mouthpiece, tip, or filter

Applies the $0.50 cap across all three categories of tobacco tax liability: wholesale sales tax on distributors, compensating use tax on distributors/wholesalers, and compensating use tax on retail dealers/consumers

Takes effect on the first day of the second month after enactment, applying to cigar sales, use, or distribution on and after that date

Aims to help New Jersey brick-and-mortar cigar retailers compete with out-of-state and online sellers that often do not collect state tobacco taxes