SENATE LAW AND PUBLIC SAFETY COMMITTEE

STATEMENT TO

SENATE, No. 3944

STATE OF NEW JERSEY

DATED:  DECEMBER 16, 2024

      The Senate Law and Public Safety Committee reports favorably Senate Bill No. 3944.

      As reported by the committee, this bill clarifies that holders of plenary retail consumption licenses for nonprofit theaters include disregarded entities of certain nonprofit corporations.

      Under current law, a municipalities are authorized to issue special plenary retail consumption licenses, known as “theater licenses,” to nonprofit corporations, exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code that conduct musical or theatrical performances or concerts on the licensed premises. This bill clarifies that nonprofit corporations eligible for the license include “disregarded entities” that are single-member limited liability corporations disregarded for federal income tax purposes pursuant to 26 C.F.R. Part 301.