Bill > A4245

Introduced Session

This bill decreases the Alcoholic Beverage Tax (ABT) rate paid on certain liquors. Currently, the ABT rate is $5.50 a gallon of liquor. This bill revises the ABT rate to provide that liquor which is manufactured in a distillery producing no more than 20,000 gallons of distilled alcoholic beverages per year shall be taxed at the rate of $2.75 a gallon; the ABT rate for liquor manufactured in distilleries producing more than 20,000 gallons remains $5.50 a gallon. The form in which the taxpayers must file the ABT rate will be prescribed by the Director, Division of Taxation in accordance with the Director's rule making authority. By decreasing the tax burden imposed on distilleries producing less than 20,000 gallons, the sponsor's intent is to encourage the start-up of additional distilleries in this State. Additionally, a lower ABT rate for small distilleries will allow these distilleries to become competitive with larger distilleries, which have a scale of economies by virtue of their size. Currently, a taxpayer in this State must file an ABT return bimonthly. Accordingly, this bill will become effective immediately and apply to all sales and deliveries made on the first day of the bimonthly reporting period next following enactment of this bill into law.

AI Summary

Committee Categories

Dawn Fantasia (R)*, 

Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee (on 05/02/2024)

Official Document