LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 4113
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JANUARY 8, 2026
SUMMARY
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Synopsis: |
Permits certain winery license holders to sell wine produced by other winery licensees under certain circumstances; establishes supplemental wine production facility license. |
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Type of Impact: |
Annual State revenue and expenditure increases. |
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Agencies Affected: |
Department of Law and Public Safety; Department of the Treasury. |
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Office of Legislative Services Estimate |
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Annual Fiscal Impact |
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State Expenditure Increase |
Indeterminate |
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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 and expenditures. The OLS, however, cannot assess the magnitude of the increases given the absence of information on the potential revenue collected from the total number of plenary and farm winery sublicenses that may be issued annually, the future license fees, and sales tax on products sold. It is unknown if there will be additional revenues from penalty collections which would be offset to some extent by increased expenditures for regulation and enforcement of the new licenses and additional costs for the division’s increased workload.
BILL DESCRIPTION
This bill permits plenary and farm winery license holders who produce not more than 250,000 gallons per year to sell a portion of their production to other plenary or farm winery license holders for the purchaser to sell on the purchaser’s premises to or to sell to a winery out of State, in accordance with the laws of the other state. Under the bill, the sold wine would not count toward the gallons produced by the seller, but toward the amount produced by the purchasing winery.
The bill also establishes a supplemental wine production facility sublicense with a fee of $750. Under the bill, a holder of a plenary or farm winery license who produces wine at their licensed premises would be entitled to produce wine at a supplemental wine production facility in the State owned or leased by the license holder if the supplemental wine production facility is operated by the license holder. Any wine produced at the supplemental production facility that is not sold to another winery license holder would be considered when calculating the total gallons per year of wine produced by the licensee for purposes of determining any fees, limitations, and eligibility for privileges that may pertain to the holder of a plenary winery license or farm winery license. The sale of wine to retail consumers on the premises of the supplemental wine production facility is prohibited by the bill.
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 and expenditures. The OLS, however, cannot assess the magnitude of the increases given the absence of information on the potential revenue collected from the total number of plenary and farm winery sublicenses that may be issued annually, the future license fees, and sales tax on products sold. It is unknown if there will be additional revenues from penalty collections which would be offset to some extent by increased expenditures for regulation and enforcement of the new licenses and additional costs for the division’s increased workload.
State Revenue Impact: The bill will increase annual State revenue collections through expanding the use of an existing licensed plenary winery or farm winery, creating a secondary business which would also require a plenary winery license ($938) or farm winery license ($63 to $375). Any winery in the State meeting these criteria could apply for the new supplemental wine production facility sublicense ($750).
According to publicly available records published by the Division of Alcohol and Beverage Control in October 2025, there are 46 active plenary winery license holders and 12 active farm winery license holders that would be eligible for the sublicense. The OLS estimates $43,500 in revenue if all eligible license holders were granted the supplemental wine production facility sublicense. The OLS anticipates that increased sales would also increase the amount of State sales tax collected, albeit by an indeterminate amount dependent upon the amount sold.
State Expenditure Impact: The bill may increase the annual administrative workload of the Division of Alcoholic Beverage Control related to 1) processing new applications, and 2) the regulation and enforcement of the new sublicenses and new provisions for existing license holders. The OLS finds these potential costs to be indeterminate.
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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
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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.).