LEGISLATIVE FISCAL ESTIMATE
[Third Reprint]
ASSEMBLY, No. 4666
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 29, 2026
SUMMARY
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Synopsis: |
Permits certain for-profit movie theaters to sell alcoholic beverages under specified conditions. |
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Type of Impact: |
Annual State and municipal revenue and expenditure increases. |
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Agencies Affected: |
Department of Law and Public Safety; Department of the Treasury; and municipalities. |
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Office of Legislative Services Estimate |
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Annual Fiscal Impact |
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State and Local Expenditure Increases |
Indeterminate |
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State and Local Revenue Increases |
Indeterminate |
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· The Office of Legislative Services (OLS) finds that the bill’s provisions of establishing a new commercial movie theater category of the plenary retail consumption license 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 to be collected from the total number of licenses, application fees, sales tax on alcoholic beverages sold, or potential penalty collections.
· Under the bill, the fee for the initial issuance of the new commercial movie theater category of the plenary retail consumption license is set to not exceed $250,000 and is to be remitted to the governing board or body of a municipality.
· A license issued under the bill would not count toward the number of licenses a municipality may have under the population formula.
BILL DESCRIPTION
This bill permits certain for-profit movie theaters to sell alcoholic beverages under specified conditions.
Under current State law, nonprofit movie theaters, such as community theaters and art house cinemas, can obtain a theater (type 37) plenary retail consumption license.
Under the bill, the governing board or body of any municipality, upon the approval of the Director of the Division of Alcoholic Beverage Control in the Department of Law and Public Safety, may issue a plenary retail consumption license to a for-profit entity that operates a motion picture exhibition facility, commonly known as a movie theater, to sell alcoholic beverages at certain times.
The bill requires the application for the initial issuance and renewal of each license be made to the municipal governing board or body on an annual basis. The fee for the initial issuance of the license is not to exceed the average sale price of the three most recent plenary retail consumption license transfers, assignments, sales, or pledges in the municipality where the license is being issued during the preceding five years, or $250,000, whichever is the lesser amount. The bill provides, however, that if the movie theater is located within the boundaries of two or more municipalities, the fee for the initial issuance of the license is not to exceed the highest average sale price of a plenary retail consumption license issued within the two or more municipalities within the last five years, or $250,000, whichever is the lesser amount. If less than three plenary retail consumption licenses have been transferred, assigned, sold, or pledged in the municipality or municipalities, as the case may be, within the previous five years, the fee for the initial issuance of the license is not to exceed $250,000.
Under current law, a municipality may issue one plenary retail consumption license for each 3,000 of its population. In accordance with the bill’s provisions, a license issued under the bill would not count toward the number of licenses a municipality may have under the population formula.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill’s provisions of establishing a new commercial movie theater category of the plenary retail consumption license 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 to be collected from the total number of licenses, application fees, sales tax on alcoholic beverages sold, and any potential penalty collections.
State Revenue Impacts: The OLS anticipates that annual State revenue collections would increase from licensing fees and from the sale of alcoholic beverages by commercial movie theaters that obtain the license. Additionally, the OLS anticipates that this would increase the number of patrons, thereby increasing the overall sale of alcohol beverage products and increasing the amount of State sales tax collected by the Division of Taxation in the Department of the Treasury.
State Expenditure Impacts: The bill would indeterminately impact the Division of Alcoholic Beverage Control’s workload depending on the number of licenses issued. 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 the sale of plenary retail consumption licenses. Under the bill, the fee for the initial issuance of the license would not exceed $250,000.
Municipal Expenditure Impacts: The bill may increase municipal expenditures associated with the annual regulation and enforcement of alcoholic beverage statutes and ordinances.
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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.).