Section 54:40B-3 - Tax of 30 percent imposed on certain tobacco products; exceptionsa. There is imposed a tax of 30% upon the wholesale price upon the sale, use, or distribution of a tobacco product within this State, except that if the product is:(1) moist snuff, the tax shall be imposed as provided in section 3 of P.L. 2006, c. 37(C.54:40B-3.1); or(2) liquid nicotine, the tax shall be imposed as provided in section 5 of P.L. 2018, c. 50(C.54:40B-3.2).b. Unless a tobacco product has already been or will be subject to the wholesale sales tax imposed in subsection a. of this section, if a distributor or wholesaler uses a tobacco product within this State, there is imposed upon the distributor or wholesaler a compensating use tax of 30% measured by the sales price of a similar tobacco product to a distributor, except that if the product is moist snuff or liquid nicotine, the tax shall be imposed as provided in section 3 of P.L. 2006, c. 37(C.54:40B-3.1) or section 5 of P.L. 2018, c. 50(C.54:40B-3.2), respectively.c. Unless a wholesale use tax is due pursuant to subsection b. of this section, if a distributor or wholesaler has not paid the wholesale sales tax imposed in subsection a. of this section upon a sale that is subject to the wholesale sales tax imposed in that subsection a., there is imposed upon the retail dealer or consumer chargeable for the sale a compensating use tax of 30% of the price paid or charged for the tobacco product, except that if the product is moist snuff or liquid nicotine, the tax shall be imposed as provided in section 3 of P.L. 2006, c. 37(C.54:40B-3.1) or section 5 of P.L. 2018, c. 50(C.54:40B-3.2), respectively, which shall be collected in the manner provided in subsection b. of section 5 of P.L. 1990, c.39 (C.54:40B-5).Amended by L. 2018, c. 50,s. 4, eff. 9/29/2018.Amended by L. 2006, c. 37, s. 5, eff. 7/15/2006.L.1990, c.39, s.3; amended 1997 c. 264, s. 3; 2001 c. 448, s. 2, eff. March 1, 2002. L. 2006, c. 37, s. 8, states, "This act shall take effect July 15, 2006 and sections 3 through 5 shall apply to sales, uses or distributions occurring on or after the first day of the first month following enactment."