SENATE LAW AND PUBLIC SAFETY COMMITTEE
STATEMENT TO
SENATE, No. 3944
STATE OF NEW JERSEY
DATED: DECEMBER 16, 2024
The Senate Law and Public Safety Committee reports favorably
Senate Bill No. 3944.
As reported by the committee, this bill clarifies that holders of
plenary retail consumption licenses for nonprofit theaters include
disregarded entities of certain nonprofit corporations.
Under current law, a municipalities are authorized to issue special
plenary retail consumption licenses, known as “theater licenses,” to
nonprofit corporations, exempt from federal income tax under section
501(c)(3) of the Internal Revenue Code that conduct musical or
theatrical performances or concerts on the licensed premises. This bill
clarifies that nonprofit corporations eligible for the license include
“disregarded entities” that are single-member limited liability
corporations disregarded for federal income tax purposes pursuant to
26 C.F.R. Part 301.