SENATE ECONOMIC GROWTH COMMITTEE

STATEMENT TO

SENATE, No. 3509

STATE OF NEW JERSEY

DATED:  JUNE 17, 2019

      The Senate Economic Growth Committee reports favorably Senate Bill No. 3509.

      As reported, this bill increases the dedication of certain revenues to the “New Jersey Wine Promotion Account” in the Department of Agriculture.

      Under current law, wines, vermouth, and sparkling wines are subject to a $0.875 per gallon tax pursuant to the “Alcoholic Beverage Tax Law.” Of the $0.875 per gallon tax currently imposed, an amount equal to $0.47 per gallon on all sales of wines, vermouth, and sparkling wines produced by New Jersey wineries is dedicated to the “New Jersey Wine Promotion Account.”  The bill increases the dedication rate from $0.47 per gallon to $0.875 per gallon, which equals 100 percent of the tax imposed on these beverages.