Decreases Alcoholic Beverage Tax rate paid on certain liquors.

A195

ASSEMBLY, No. 195

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Decreases Alcoholic Beverage Tax rate paid on certain
liquors.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
decreasing the Alcoholic Beverage Tax rate paid on
certain liquors, amending
R.S.54:43-1
.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� R.S.54:43-1 is amended
to read as follows:

���� 54:43-1.� Tax rates. There are
hereby levied and imposed upon any sale of alcoholic beverages made within this
State or upon any delivery of alcoholic beverages made within or into this
State the following excise taxes:

���� a.���� Beer--From July 1, 1990
through June 30, 1992, at the rate of $0.10 a gallon or fraction thereof and on
or after July 1, 1992, at the rate of $0.12 a gallon or fraction thereof.

���� b.��� Liquors--From July 1,
1990 through June 30, 1992, at the rate of $4.20 a gallon, on or after July 1,
1992 through July 31, 2009, at the rate of $4.40 a gallon and on or after
August 1, 2009, at the rate of
$2.75 a gallon for liquors which are
manufactured in a distillery which produces no more than 20,000 gallons of
distilled alcoholic beverages per year, and
$5.50 a gallon
for liquors
manufactured in all other distilleries
.

���� c.���� (Deleted by amendment,
P.L.1972, c.53.)

���� d.��� (Deleted by amendment,
P.L.1972, c.53.)

���� e.���� Wines, vermouth and
sparkling wines--From July 1, 1990 through June 30, 1992, at the rate of $0.50
a gallon, on or after July 1, 1992 through July 31, 2009, at the rate of $0.70
a gallon; and on or after August 1, 2009, at the rate of $0.875 a gallon, provided
however, that cider containing at least three and two-tenths per centum (3 2/10
%) of alcohol by volume but not more than 7 per centum (7%) of alcohol by
volume shall be taxed at the rate of $0.15 a gallon.

(cf: P.L.2009, c.71, s.1)

���� 2.��� This act shall take
effect immediately and apply to all sales and deliveries made on or after the
first day of the first month of the reporting period next following the date of
enactment.

STATEMENT

���� This bill decreases the
Alcoholic Beverage Tax (ABT) rate paid on certain liquors.� Currently, the ABT
rate is $5.50 a gallon of liquor.� This bill revises the ABT rate to provide
that liquor which is manufactured in a distillery producing no more than 20,000
gallons of distilled alcoholic beverages per year shall be taxed at the rate of
$2.75 a gallon; the ABT rate for liquor manufactured in distilleries producing
more than 20,000 gallons remains $5.50 a gallon.� The form in which the
taxpayers must file the ABT rate will be prescribed by the Director, Division
of Taxation in accordance with the Director�s rule making authority.

���� By decreasing the tax burden
imposed on distilleries producing less than 20,000 gallons, the sponsor�s
intent is to encourage the start-up of additional distilleries in this State.�
Additionally, a lower ABT rate for small distilleries will allow these distilleries
to become competitive with larger distilleries, which have a scale of economies
by virtue of their size.�

���� � Currently, a taxpayer in
this State must file an ABT return bimonthly.� Accordingly, this bill will
become effective immediately and apply to all sales and deliveries made on the
first day of the bimonthly reporting period next following enactment of this
bill into law.