New Jersey Senate Bill S1853

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Creates new taxable category of alcoholic beverages called flavored malt beverages, imposes separate rate of taxation on new category pursuant to alcoholic beverages tax and allocates associated revenue.

Impact

The passage of S1853 will modify the existing New Jersey alcoholic beverage tax structure by incorporating flavored malt beverages into the tax code. The tax revenue generated from this new category will be distributed equally between the Alcohol Education, Rehabilitation and Enforcement Fund and the state's General Fund. This allocation aims to support public health initiatives and the state's financial infrastructure, reflecting a targeted approach to both fund educational programs and contribute to general state revenue.

Summary

Senate Bill S1853 introduces a new taxable category for alcoholic beverages known as 'flavored malt beverages.' This category specifically targets drinks that typically contain an alcohol content of 0.5% or more by volume and are produced using distilled spirits, resulting in products that have characteristics akin to beer yet utilize different production methods. Some examples of flavored malt beverages might include alcoholic lemonades and cooler-type drinks. The bill proposes a taxation rate of $4.40 per gallon for these beverages, aiming to appropriately account for the added distilled spirits used in their production.

Contention

While the bill appears to have garnered support for addressing the taxation gap related to flavored malt beverages, there are notable concerns regarding its potential implications. Stakeholders may debate the effectiveness of allocating this new tax revenue, particularly in terms of how it might influence the price of alcoholic beverages and consumer behavior in New Jersey. Furthermore, the definitions and criteria for what constitutes a flavored malt beverage may lead to discussions about the regulatory framework and enforcement of the proposed taxes, ultimately shaping the landscape of alcohol sales in the state.