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S2641 1R FISCAL ESTIMATE
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.).