LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 5258
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JANUARY 15, 2026
SUMMARY
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Synopsis: |
Permits certain wineries to sell their products by the glass for consumption in licensed salesrooms. |
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Type of Impact: |
Annual State revenue and expenditure increases. Annual municipal expenditure increase. |
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Agencies Affected: |
Department of Law and Public Safety; Department of the Treasury; Municipalities; State, County, and Municipal Law Enforcement. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
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Annual State and Local Expenditure Increases |
Indeterminate |
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Annual State Revenue Increases |
Indeterminate |
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· The Office of Legislative Services (OLS) finds that the bill will result in indeterminate increases in annual State and municipal revenues and expenditures. The OLS, however, cannot assess the direction of the net effect of these increases due to the lack of information on workload increases for the Division of Alcoholic Beverage Control and municipalities, as well as the potential revenue collected from increased sales tax on products sold and any penalty collections resulting from serving certain products by the glass.
· This bill may increase State revenue from increased sales tax collections resulting from increased products sold by the holders of plenary winery licenses and farm winery licenses. Additionally, the OLS projects that the provisions in this bill may incentivize winery license holders and farm winery license holders to open additional salesrooms, if they have not reached the maximum number allowed, which may result in increased State revenue from the $250 sales room permit fee.
BILL DESCRIPTION
This bill permits plenary winery license holders and farm winery license holders to sell their products by the glass for consumption in their licensed salesrooms. Under the bill, “by the glass” is defined as the selling of an individual portion of wine, or wine mixed with non-alcoholic beverages, in an open container. The bill prohibits a salesroom from being located on the premises of a restaurant.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill will result in indeterminate increases in annual State and municipal revenues and expenditures. The OLS, however, cannot assess the direction of the net effect of these increases given the absence of information on workload increases for the Division of Alcoholic Beverage Control and municipalities, as well as the potential revenue collected from increased sales tax on products sold and penalty collections from selling additional products.
State Revenue Impacts: The OLS anticipates that this bill may increase the overall sale of alcohol beverage products, thus increasing the amount of State sales tax collected by the Division of Taxation in the Department of the Treasury. Additionally, the OLS notes that the provisions in this bill may incentivize winery license holders and farm winery license holders to open additional salesrooms if they have not reached the maximum number allowed, which may result in increased State revenue from the $250 sales room permit fee.
State and Municipal Expenditure Impacts: The bill may increase costs to the Division of Alcoholic Beverage Control and municipalities associated with the regulation of the bill’s provisions. The OLS also notes that the State and municipalities may incur additional public safety costs if additional law enforcement officers need to be employed or paid overtime to enforce alcoholic beverage laws.
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Section: |
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Analyst: |
Lead Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).