LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 3813
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MARCH 5, 2025
SUMMARY
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Synopsis: |
Establishes historic distillery license; allows consumption of licensee's products on and off licensed premises under certain circumstances. |
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Type of Impact: |
Annual State costs and revenue increase. |
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Agencies Affected: |
Department of Law and Public Safety. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
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Annual State Cost Increase |
Indeterminate |
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Annual State Revenue Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) finds that the bill will result in indeterminate increases in annual State revenues from the establishment of the historic distillery license. Revenues will accrue from the $1,000 license fee charged by the Division of Alcoholic Beverage Control in the Department of Law and Public Safety, from taxes paid on products sold, and potentially from penalties collected. The OLS lacks the informational basis to determine the number of historic distillery licenses that will be issued in a given year or the amount of tax and penalty revenue that will be collected to arrive at a revenue estimate for the bill.
· The OLS also anticipates an indeterminate increase in the division’s workload to issue the new licenses and to oversee the activities of the new license holders. The workload could likely be absorbed by current staff utilizing existing resources.
BILL DESCRIPTION
This bill establishes a historic distillery license to be issued for use in connection with a premises which is included in the New Jersey Register of Historic Places.
Under the bill, the license holder would be allowed to manufacture any distilled alcoholic beverages and rectify, blend, treat and mix, and fortify, blend, and treat fermented alcoholic beverages. In addition, the license holder would be entitled to sell distilled alcoholic beverages at retail to consumers on the licensed premises of the distillery for consumption on the premises and to provide samples. The license holder also would be entitled to sell this product for consumption off the premises in a quantity of not more than five liters per person. The license fee established would be $1,000.
The bill does not establish a limitation on the amount of distilled alcoholic beverages that the holder of this license would be entitled to manufacture. Under current law, the holder of a craft distillery license is limited to annually producing 20,000 gallons or less of distilled alcohol beverages.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill will result in indeterminate increases in annual State revenues from the establishment of the historic distillery license. Revenues will accrue from the $1,000 license fee charged by the Division of Alcoholic Beverage Control in the Department of Law and Public Safety, from taxes paid on products sold, and potentially from penalties collected. The OLS lacks the informational basis to determine the number of historic distillery licenses that will be issued in a given year or the amount of tax and penalty revenue that will be collected to arrive at a revenue estimate for the bill. The also anticipates an indeterminate increase in the division’s workload to issue the new licenses and to oversee the activities of the new license holders. The workload could likely be absorbed by current staff utilizing existing resources.
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Section: |
Law and Public Safety |
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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.).