Increases amount of cigarette and other tobacco products tax revenues dedicated to anti-smoking initiatives from one to three percent.

S3221

SENATE, No. 3221

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 2, 2026

Sponsored by:

Senator� SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Increases amount of cigarette and other tobacco
products tax revenues dedicated to anti-smoking initiatives from one to three
percent.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the disposition of certain cigarette
and other tobacco products tax revenue and amending P.L.1997, c.264.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 4 of P.L.1997,
c.264 (C.26:2H-18.58g) is amended to read as follows:

���� 4.��� Notwithstanding the
provisions of any other law to the contrary,

���� a.���� commencing July 1, 1998
and ending June 30, 2006: after the deposit required pursuant to section 5 of
P.L.1982, c.40 (C.54:40A-37.1), the first $150,000,000 of revenue collected
annually from the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et
seq.) and the first $5,000,000 of revenue collected annually from the
"Tobacco Products Wholesale Sales and Use Tax Act," P.L.1990, c.39
(C.54:40B-1 et seq.), shall be deposited into the Health Care Subsidy Fund
established pursuant to section 8 of P.L.1992, c.160 (C.26:2H-18.58); and the
next $390,000,000 of revenue collected annually from the "Cigarette Tax
Act," P.L.1948, c.65 (C.54:40A-1 et seq.) shall be appropriated annually
for health programs, and the next $50,000,000 of revenue collected annually
from the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.)
shall be appropriated annually to the New Jersey Economic Development Authority
for payment of debt service incurred by the authority for school facilities
projects and in fiscal years commencing July 1, 2002 and July 1, 2003, the next
$30,000,000 of revenue collected annually from the "Cigarette Tax
Act," P.L.1948, c.65 (C.54:40A-1 et seq.) shall be directed to the
Department of Health to fund anti-smoking initiatives, except that the amount
shall be $40,000,000 in the fiscal year commencing July 1, 2004 and $45,000,000
in the fiscal year commencing July 1, 2005;

���� b.��� commencing with fiscal
years beginning on and after July 1, 2006, after the deposit required pursuant
to section 5 of P.L.1982, c.40 (C.54:40A-37.1), the first $150,000,000 of
revenue collected annually from the "Cigarette Tax Act," P.L.1948, c.65
(C.54:40A-1 et seq.) and the first $5,000,000 of revenue collected annually
from the "Tobacco Products Wholesale Sales and Use Tax Act,"
P.L.1990, c.39 (C.54:40B-1 et seq.), shall be deposited into the Health Care
Subsidy Fund established pursuant to section 8 of P.L.1992, c.160
(C.26:2H-18.58).� In addition, commencing with fiscal years beginning on and
after July 1, 2006 but before July 1, 2009, there shall be deposited
$215,000,000 of revenue collected annually from the "Cigarette Tax
Act," P.L.1948, c.65 (C.54:40A-1 et seq.) in accordance with the
provisions of section 5 of P.L.2004, c.68 (C.34:1B-21.20), and, commencing with
fiscal years beginning on and after July 1, 2009, there shall be deposited
$241,500,000 of revenue collected annually from the "Cigarette Tax
Act," P.L.1948, c.65 (C.54:40A-1 et seq.) in accordance with the
provisions of section 5 of P.L.2004, c.68 (C.34:1B-21.20).� In addition,
commencing with fiscal years beginning on and after July 1, 2018, an amount
equal to
[
one
]

three

percent of the total revenues collected annually from the "Cigarette Tax
Act," P.L.1948, c.65 (C.54:40A-1 et seq.) and the "Tobacco Products
Wholesale Sales and Use Tax Act," P.L.1990, c.39 (C.54:40B-1 et seq.)
shall be directed to the Department of Health to fund and implement
evidence-based tobacco control programs that align with the federal Centers for
Disease Control and Prevention Best Practices for Comprehensive Tobacco Control
Programs and that include the goals of preventing youth initiation of tobacco
usage, reducing exposure to secondhand smoke, and promotion of cessation.�
Funding priority shall be given to programs that aim to reduce the incidence of
smoking among the State's Medicaid population and youth; and

���� c.���� commencing with fiscal
years beginning on or after July 1, 2025, $2,000,000 of revenue collected
annually from the tax on liquid nicotine pursuant to section 5 of P.L.2018,
c.50 (C.54:40B-3.2) and the tax on container e-liquid pursuant to section 5 of
P.L.2019, c.147 (C.54:40B-3.4) shall be deposited into the Health Care Subsidy
Fund established pursuant to section 8 of P.L.1992, c.160 (C.26:2H-18.58).

(cf: P.L.2025, c. 68, s.7)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill increases, from one
to three percent, the

amount of
cigarette and other tobacco products tax revenues
dedicated

to anti-smoking initiatives
.� Under existing
law, these revenues are to be
directed
to the Department of Health to fund tobacco control programs to prevent youth
initiation of tobacco usage, reducing exposure to secondhand smoke, and
promotion of cessation.
� Moreover, priority for the funding is to be
given to programs that aim to reduce the incidence of smoking among the State's
Medicaid population and youth.� In FY 2023, these revenues are projected to
provide approximately $5 million for anti-smoking initiatives.� Under the bill,
that amount would increase to approximately $15 million.