ASSEMBLY APPROPRIATIONS COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 2851

 

with Assembly committee amendments

 

STATE OF NEW JERSEY

 

DATED: JUNE 9, 1997

 

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 2851, with committee amendments.

      Assembly Bill No. 2851, as amended provides an alcoholic beverage tax rate for alcoholic apple cider that is similar to the tax rate on beer, instead of taxing that cider at the same rate as wine.

      Currently, the alcoholic beverage tax is imposed on beer at the rate of $.12 per gallon and on wine at the rate of $.70 per gallon. This bill provides a tax rate of $.12 per gallon for cider that has an alcoholic content of 3.2% or more up to 7%, a rate more similar to the rate for beer.

 

FISCAL IMPACT:

      According to the Department of Treasury, the enactment of this bill would result in a revenue loss to the State of approximately $160,000 annually. Other estimates put the revenue loss in a range of approximately $163,000 to $191,000 annually.

 

COMMITTEE AMENDMENTS

      The committee amended the bill to clarify the definition of cider and to change the effective date.