Provides temporary deduction for food and beverage establishments from certain sales and use tax remittances.

S3594

SENATE, No. 3594

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� ANTHONY M. BUCCO

District 25 (Morris and Passaic)

SYNOPSIS

���� Provides temporary deduction for food and beverage
establishments from certain sales and use tax remittances.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
providing a temporary deduction for food and beverage
establishments from remittances under the �Sales and Use Tax Act,� P.L.1966,
c.30 (C.54:32B-1 et seq.).

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

���� 1.��� a. A seller operating a
restaurant establishment, mobile food services establishment, or alcoholic
beverages establishment may deduct from the remittance required under section 18
of the �Sales and Use Tax Act,� P.L.1966, c.30 (C.54:32B-18), the amount of
taxes collected from not more than $70,000 in taxable sales received per
eligible business location during each month of the relief period.� The
deduction allowed pursuant to this section shall not exceed the amount of taxes
collected at the business location during the month for which the deduction is
claimed.

���� b.��� (1) If a seller operates
an alcoholic beverages establishment or a restaurant establishment, the seller
may claim the deduction for no more than five business locations, except that
no deduction shall be allowed for:

���� (a)�� nonphysical sites that
are established for the purposes of reporting taxable sales; or

���� (b)�� a temporary business
location or special event.

���� (2)�� If a seller operates a
mobile food services establishment, the seller may claim the deduction for no
more than five motorized vehicles or nonmotorized carts.

���� (3)�� If a seller operates
both a restaurant establishment and a mobile food services establishment, the
seller may claim the deduction for no more than five business locations and may
also claim the deduction for no more than five motorized vehicles or
nonmotorized carts.

���� c.���� A seller may claim the
deduction on the monthly or quarterly return filed to the Director of the
Division of Taxation in the Department of the Treasury pursuant to section 17
of P.L.1966, c.30 (C.54:32B-17).� The seller shall retain the collections of
any taxes for which the deduction is claimed.

���� d.��� As used in this section:

���� �Alcoholic beverages
establishment� means a business primarily that is engaged in preparing and
serving alcoholic beverages for immediate, on-premises consumption, and that
may also prepare and serve meals or other food items for on-premises
consumption.� The term includes, but is not limited to, breweries,
distilleries, wineries, and brew pubs.

���� �Mobile food services
establishment� means a business primarily engaged in preparing and serving
meals, snacks, or nonalcoholic beverages for immediate consumption from
motorized vehicles or nonmotorized carts.� The term does not include businesses
that deliver food prepared by third parties, or businesses that prepare and
deliver meal kits, heat-at-home meals, or other unprepared food to consumers
for home consumption.

���� �Relief period� means the
four-month period beginning on the first day of the second month next following
the effective date of P.L. , c. (pending
before the Legislature as this bill) and ending on the last day of the fifth
month next following the effective date of P.L. , c. (pending
before the Legislature as this bill).

���� �Restaurant establishment�
means a business primarily engaged in preparing and serving meals and other
food items that are primarily intended for on-premises consumption.� The term
does not include fast-food restaurants that dispense food intended to be ordered,
prepared, and served quickly, with minimal or no table service.

���� 2.��� Notwithstanding any
provision of the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et
seq.) to the contrary, the Director of the Division of Taxation in the
Department of the Treasury shall adopt, immediately upon filing with the Office
of Administrative Law, and no later than the 30th day after the effective date
of this act, such rules and regulations as the director deems necessary to
implement the provisions of
P.L. , c.
(pending
before the Legislature as this bill).

���� 3.��� This act shall take
effect immediately and expire on the 21st day of the eighth month next
following the date of enactment.

STATEMENT

���� This bill provides a temporary
deduction for food and beverage establishments from remittances under the
�Sales and Use Tax Act,� P.L.1966, c.30 (C.54:32B-1 et seq.).� Through this
deduction, these establishments would retain a portion of the sales taxes that
are collected at certain business locations.

���� Under the bill, a qualifying
food or beverage establishment may deduct from the remittance required under
the �Sales and Use Tax Act,� P.L.1966, c.30 (C.54:32B-1 et seq.), the amount of
taxes collected from not more than $70,000 in taxable sales received per
eligible business location during each month of a four-month relief period.�
However, the deduction may not exceed the amount of taxes collected at the
business location during the month for which the deduction is claimed.� After
claiming the deduction, a qualifying food or beverage establishment would
retain the collection of any taxes for which the deduction is claimed.

���� The following food and
beverage establishments would qualify for the deduction: (1) alcoholic beverage
establishments, including breweries, wineries, distilleries, and brew pubs; (2)
restaurant and food establishments, not including fast-food restaurants, and
(3) mobile food service establishments, including food trucks and food stands.

���� The bill allows a qualifying
food or beverage establishment to claim the dedication for not more than five
business locations.� However, if a seller operates both a restaurant
establishment and a mobile food services establishment, the deduction could be
claimed for not more than five business locations and not more than five
motorized vehicles or nonmotorized carts.

���� Under the bill, the four-month
relief period would begin on the first day of the second month following the
date of enactment and conclude on the last day of the fifth month following the
date of enactment.