ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 3509

STATE OF NEW JERSEY

DATED:  NOVEMBER 14, 2019

      The Assembly Appropriations Committee reports favorably Senate Bill No. 3509.

      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.

      As reported, this bill is identical to Assembly Bill No. 4732, as also reported by the committee.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) estimates that increasing the Alcoholic Beverage Tax dedication to $0.875 per gallon will increase the amount deposited in the “New Jersey Wine Promotion Account” by about $252,000, from $293,000 in FY 2019 to $545,000 in FY 2020.