Bill Text: NJ A1726 | 2016-2017 | Regular Session | Introduced
Bill Title: Reduces the alcoholic beverage excise tax rate on liquor, wine, vermouth, sparkling wine, and hard cider and eliminates the dedication of that tax to the Health Care Subsidy Fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (N/A - Dead) 2016-01-27 - INT 1RA REF ARO [A1726 Detail]
Download: New_Jersey-2016-A1726-Introduced.html
STATE OF NEW JERSEY
217th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION
Sponsored by:
Assemblyman LOUIS D. GREENWALD
District 6 (Burlington and Camden)
SYNOPSIS
Reduces the alcoholic beverage excise tax rate on liquor, wine, vermouth, sparkling wine, and hard cider and eliminates the dedication of that tax to the Health Care Subsidy Fund.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act reducing the excise tax on certain alcoholic beverages and eliminating the dedication of that tax to the Health Care Subsidy Fund, amending R.S.54:43-1 and repealing section 2 of P.L.2009, c.71.
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, on or after July 1, 1992 through July 31, 2009, at the rate of $4.40 a gallon [and] , on or after August 1, 2009 through June 30, 2010, at the rate of $5.50 a gallon, and on or after July 1, 2010, at the rate of $4.40 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, on or after July 1, 1992 through July 31, 2009, at the rate of $0.70 a gallon [; and] , on or after August 1, 2009 through June 30, 2010, at the rate of $0.875 a gallon, and on or after July 1, 2010, at the rate of $0.70 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 [$0.15] $0.12 a gallon.
(cf: P.L.2009, c.71, s.1)
2. Section 2 of P.L.2009, c.71 (C.26:2H-18.58h) is repealed.
3. This act shall take effect July 1, 2010.
STATEMENT
This bill reduces the
alcoholic beverage excise tax rate imposed on liquor, wine, vermouth, sparkling
wine, and hard cider. Beginning on July 1, 2010, the rate of tax imposed on
liquor is
decreased from $5.50 per gallon to $4.40 per gallon; the rate of tax imposed on
wine, vermouth, and sparkling wine is decreased from $0.875 per gallon to $0.70
per gallon; and, the rate of tax imposed on hard cider (cider with an alcohol
content by volume of at least 3 2/10% but not more than 7%) is deceased from
$0.15 per gallon to $0.12 per gallon.
This bill also repeals the dedication of $22 million of the annual revenue collected pursuant to the alcoholic beverage excise tax to the Health Care Subsidy Fund. The $22 million in annual tax revenue is approximately the amount of tax revenue collected annually that is attributed to the tax rate increases made in 2009 that are reversed by this bill.
