Sponsored by:
Senator LORETTA WEINBERG
District 37 (Bergen)
SYNOPSIS
Increase tax rates on liquor and wines, vermouth, sparkling wines and hard cider and dedicates additional revenue to the Health Care Subsidy Fund.
CURRENT VERSION OF TEXT
As introduced.
An Act increasing the excise tax on alcoholic beverages other than beer and dedicating additional revenue to the Health Care Subsidy Fund, amending R.S.54:43-1 and supplementing P.L.1992, c.160 (C 26:2H-18.51 et seq.).
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 [and] , on or after July 1, 1992 through June 30, 2009, at the rate of $4.40 a gallon and on or after July 1, 2009, at the rate of $5.50 a gallon.
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 [and] , on or after July 1, 1992 through June 30, 2009, at the rate of $0.70 a gallon; and on or after July 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 [$0.12] $0.15 a gallon.
(cf: P.L.1997, c.153, s.2)
2. (New section) Commencing with fiscal years beginning on and after July 1, 2009, there shall be deposited annually in the Health Care Subsidy Fund established pursuant to section 8 of P.L.1992, c.160 (C.26:2H-18.58), the sum of $22,000,000 from the revenue collected annually pursuant to the "Alcoholic Beverage Tax Law," R.S.54:41-1 et seq.
3. This act shall take effect July 1, 2009.
STATEMENT
This bill increases the alcoholic beverage tax rate on liquor, wines, vermouth and sparkling wines by 25%. The tax rate on liquor is increased from $4.40 a gallon to $5.50 a gallon and on wines, vermouth and sparkling wines from $0.70 a gallon to $0.875 a gallon. The rate on certain hard cider is increased from $0.12 a gallon to $0.15 a gallon.
The bill also annually dedicates $22,000,000 of alcoholic beverage tax revenue to the Health Care Subsidy Fund beginning in State fiscal year 2010.