LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 2641

STATE OF NEW JERSEY

222nd LEGISLATURE

DATED: JULY 1, 2026

SUMMARY

Synopsis:	Permits farm brewery licensees to sell products to consumers for consumption on licensed premises.
Type of Impact:	Annual State revenue increases. Annual State and local expenditure increases.
Agencies Affected:	Department of Law and Public Safety; Department of the Treasury; municipalities.

Office of Legislative Services Estimate
Annual Fiscal Impact
State and Local Expenditure Increases	Indeterminate
State Revenue Increases	Indeterminate

· The Office of Legislative Services (OLS) finds that the bill will result in indeterminate increases in annual State revenues and State and local 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 licenses, application fees, sales tax on alcoholic beverages sold, and any penalty collections.

BILL DESCRIPTION

      This bill permits farm brewery licensees to sell products to consumers for consumption on the licensed premises and increases the quantity limitation on samples of malt alcoholic beverages.

      Under current law, the holder of a farm brewery license is entitled to brew any malt alcoholic beverages in a quantity to be expressed in the license not in excess of 2,500 barrels of 31 fluid gallons per year and to sell products to consumers for consumption off the licensed premises and to offer samples for sampling purposes only.  This bill allows holders of a farm brewery license to also sell products to consumers for consumption on the licensed premises.

      Current law defines sampling as the selling at a nominal charge or the gratuitous offering of an open container not exceeding one and one-half ounces of a malt alcoholic beverage. The bill increases the quantity limitation on samples of malt alcoholic beverages offered by farm brewery licensees to four ounces.

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 State and local 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 licenses, application fees, sales tax on alcoholic beverages sold, and any penalty collections.

State Revenue Impacts: The OLS anticipates that annual State revenue collections may increase from license fees from additional farm brewery licenses sold and from the sale of alcoholic beverages on site by farms that obtain a farm brewery license. The OLS anticipates that although the amount of beverages a location may produce does not increase, the bill may increase the number of patrons visiting the farm, thereby increasing the overall sale of alcoholic beverage products and increasing the amount of State taxes collected.

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 Expenditure Impacts: The bill may increase municipal expenditures associated with the annual regulation and 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.).