New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 6 - UNFAIR CIGARETTE SALES ACT RULES
Subchapter 1 - GENERAL PROVISIONS
Section 18:6-1.1 - Definitions
The following words and phrases, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise.
"Basic cost of cigarettes" means the invoice cost of cigarettes to the retailer or wholesaler, as the case may be, or the replacement cost of cigarettes to the retailer or wholesaler, as the case may be, in the quantity last purchased, whichever is lower, less all trade discounts and the normal discount for cash, afforded for prompt payment, but excluding any special, extraordinary, or anticipatory discounts for payment within a shorter period of time than the prompt payment date required for eligibility for the normal discount for cash, plus the total face value of any stamps required by the New Jersey Cigarette Tax Act and by any municipal ordinance now in effect or hereafter enacted, if not already included in the invoice or replacement cost. The trade discount and normal discount for cash is deemed to be two percent of the invoice cost or replacement cost of cigarettes.
"Business day" means any day other than a Sunday or a legal holiday.
"Cigarette" means any roll for smoking, made wholly, or in part, of tobacco, or of any other substance or substances other than tobacco, irrespective of size, shape, or flavoring, the wrapper or cover of which is made of paper or any other substance or material excepting tobacco.
"Cigarette Tax Act" or "Act" means the Public Laws of 1948, Chapter 65, as amended and supplemented (N.J.S.A. 54:40A-1 et seq.).
"Cost of doing business" means and includes without limitation, as evidenced by the standards and methods of accounting regularly employed in the allocation of overhead costs and expenses, paid or incurred:
1. Labor (including salaries of executives and officers);
2. Rent;
3. Depreciation;
4. Selling costs;
5. Maintenance of equipment;
6. Delivery costs;
7. Licenses of all types;
8. Taxes;
9. Insurance;
10. Advertising;
11. In the absence of the filing with the Director of satisfactory proof of a lesser or higher cost of doing business, the cost of doing business is to be as follows:
i. For a retailer, eight percent of the basic cost of cigarettes to the retailer;
ii. For a wholesaler, 5 1/4 percent of the basic cost of cigarettes to the wholesaler, plus cartage to the retailer outlet if performed or paid for by the wholesaler, which cartage cost in the absence of the filing with the Director of satisfactory proof of a lesser or higher cost is deemed to be 3/4 of one percent of the basic cost of cigarettes to the wholesaler.
"Cost to the retailer" means the basic cost of cigarettes to the retailer plus the cost of doing business by the retailer.
"Cost to the wholesaler" means the basic cost of cigarettes to the wholesaler plus the cost of doing business by the wholesaler.
"Director" means the Director of the Division of Taxation. Wherever in these rules and regulations the word "Director" is used, it shall mean and include any employee or employees of the Division of Taxation, deputized or authorized, either generally or specifically, to act on behalf of the Director.
"Manufacturer" means any person, wherever resident or located, who manufactures or produces, or causes to be manufactured or produced, cigarettes and sells, uses, stores, or distributes the cigarettes, regardless of whether they are intended for sale, use, or distribution within or outside the State of New Jersey.
"Manufacturer's representative" means any person, employed by a manufacturer, who, for promotional purposes, sells, stores, handles, or distributes cigarettes within the State of New Jersey, limited exclusively to cigarettes manufactured by the employing manufacturer.
"Person" means any individual, firm, association, company, partnership, corporation, joint stock company, club, agency, syndicate, municipal corporation, or other political subdivision of the State of New Jersey, trust, receiver, trustee, fiduciary, and conservator.
"Retailer" means any person who operates a store, stand, booth, or concession for the purposes of making sales of cigarettes at retail.
"Sale" means any transfer for a consideration, exchange, barter, gift, offer for sale, and distribution in any manner or by any means whatsoever.
"Sell at retail," "sale at retail," and "retail sales" mean any transfer of title to cigarettes for a valuable consideration, made in the ordinary course of trade or usual conduct of the seller's business, to the purchaser for consumption or use.
"Sell at wholesale," "sale at wholesale," and "wholesale sales" mean any bona fide transfer of title to cigarettes for a valuable consideration, made in the ordinary course of trade or in the usual conduct of the wholesaler's business, to a retailer for the purpose of resale.
"Wholesaler" means any person who:
1. Purchases cigarettes directly from the manufacturer; or
2. Purchases cigarettes from any other person who purchases from the manufacturer and who acquires such cigarettes solely for the purpose of bona fide resale to retail dealers or to other persons for the purposes of resale only; or
3. Services retail outlets by the maintenance of an established place of business for the purchase of cigarettes, including, but not limited to, the maintenance of warehousing facilities for the storage and distribution of cigarettes.
