LEGISLATIVE FISCAL ESTIMATE TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 1230

STATE OF NEW JERSEY

DATED: JANUARY 7, 1997

      Assembly Committee Substitute for Assembly Bill No. 1230 of 1996 would increase the annual brand registration fee for all alcoholic beverages from $20 to $23. The bill also eliminates the renewal brand registration filings and fee requirements for vintage wines. Current law requires all alcoholic beverage labels to be registered annually with the Division of Alcoholic Beverage Control (ABC) in the Department of Law and Public Safety. Thus, the bill would eliminate the current annual $20 renewal fee for these wines.

      The ABC indicated that 18,500 brand registrations for all alcoholic beverages were made in FY 1995, which amounted to $370,000 in revenues. Of these brand registrations, 1500 were for the renewal of vintage wines. The ABC assumes that the same number of alcoholic beverage registrations would be made in succeeding years. Based on the ABC's assumption, 17,000 brand registrations for alcoholic beverages, excluding vintage wines, would be subject to the $3 registration fee increase, which would amount to a gross revenue gain of $51,000.

      This gross revenue gain would be offset by a gross revenue loss of $30,000 in foregone renewal fees at $20 for 1,500 vintage wines, as proposed by the bill. Thus, the net State revenue gain under this bill would be $21,000 in the first year following enactment.

      The Office of Legislative Services (OLS) concurs.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.