SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 1946

with Senate committee amendments

STATE OF NEW JERSEY

DATED: JUNE 5, 1997

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 1946 with amendments.

      Senate Bill No. 1946, as amended, 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 identical to the rate for beer. 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. Cider is currently taxed at the rate of wines, vermouths and sparkling wines.

COMMITTEE AMENDMENTS

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

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.