LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 2160

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: DECEMBER 3, 2025

 

 

SUMMARY

 

Synopsis:

Allows seasonal retail consumption alcoholic beverage license holder to exchange license for full-year consumption license.

Type of Impact:

Annual State and municipal revenue and expenditure increases.

 

Agencies Affected:

Department of Law and Public Safety; Department of the Treasury; municipalities.

 

Office of Legislative Services Estimate

Fiscal Impact

 

 

 

Annual State and Local Expenditure Increases

Indeterminate

Annual State and Local Revenue Increases

Indeterminate

 

·         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 the 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 the total number of converted licenses, application fees, sales tax on alcoholic beverages sold, and any penalty collections.

 

·         The bill may increase municipal revenues from seasonal retail consumption licenses being converted to annual plenary retail consumption licenses for a one-time fee not to exceed $250,000.

 

 

BILL DESCRIPTION

 

      This bill allows a person who held a seasonal retail consumption license prior to the bill’s effective date to surrender the license to the issuing authority, which then may exchange the license for a plenary retail consumption license.  This license will permit the licensee to sell alcoholic beverages for consumption on the licensed premises throughout the entire year.

      Under the bill, a person who exchanges a seasonal retail consumption license would have the same privileges and be entitled to sell alcoholic beverages during the same times and days as other plenary retail consumption license holders in the same municipality.  The fee to convert a seasonal license would not exceed $250,000.  A person who exchanges a license would also be required to pay the same annual fee as a plenary retail consumption license holder.

 

 

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 the increases given the absence of information on workload increases for the Division of Alcoholic Beverage Control in the Department of Law and Public Safety and municipalities as well as the potential revenue collected from the total number of converted licenses, application fees, sales tax on alcoholic beverages sold, and any penalty collections.

 

      State Revenue Impacts:    The OLS anticipates that annual State revenue collections would increase from licensing fees and from an overall increase in sales by licensees who will have additional months to sell alcoholic beverages, thus increasing the amount of State sales tax collected.

      According to the Division of Alcoholic Beverage Control’s online licensing system, there are currently nine seasonal retail consumption licenses.  A seasonal retail consumption license allows for the sale of alcoholic beverages for on-site consumption for a limited time during the summer or winter season.  A license issued during the summer season allows the licensee to serve alcoholic beverages from May 1 through November 14.  The holder of a winter seasonal license may sell alcoholic beverages from November 15 to April 30.  To date, a winter seasonal license has not been issued.

 

      State Expenditure Impacts:  The bill would indeterminately impact the Division of Alcoholic Beverage Control’s workload depending on the number of converted licenses.

      The OLS notes that any increased sales of alcoholic beverages may affect the workload of the Division of Taxation in the Department of the Treasury.

 

      Municipal Revenue Impacts:  The OLS anticipates the bill would increase municipal revenues from seasonal retail consumption licenses being converted to annual plenary retail consumption licenses for a one-time fee not to exceed $250,000.  All annual fees are still required.

 

      Municipal Expenditure Impacts:  The bill may increase municipal expenditures associated with the regulation and enforcement of converted licenses.

      Additionally, it appears that the establishments holding seasonal retail consumption licenses are primarily located in shore towns.  The OLS notes that these municipalities may employ additional law enforcement due to the increased cost of public safety, as there may be an increased need for enforcement of alcoholic beverage statutes and ordinances.

Section:

Law and Public Safety

Analyst:

Kristin Brunner Santos

Lead Fiscal Analyst

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.).