S3509 —

S3509 AAPAbsolute StatementVeto 11/14/19SENATE ASSEMBLYBILL APPROPRIATIONSNO. COMMITTEE   STATEMENT TO   SENATE, No.

3509   STATETo OFthe NEWSenate: JERSEY   DATED:

 NOVEMBER     14,Pursuant 2019to  Article      V, TheSection AssemblyI, AppropriationsParagraph Committee14 reportsof favorablythe New Jersey Constitution, I herewith return Senate Bill No.

3509.3509 without my approval.

      This bill increaseswould increase the annual dedication of certain revenues to the “New Jersey Wine Promotion Account” in the Department of Agriculture.

      New UnderJersey’s currentWine law,Promotion wines,Account vermouth,promotes and sparkling wines are subject to a $0.875 per gallon tax pursuant to the “Alcoholic Beverage Tax Law.” Of the $0.875 per gallon tax currently imposed, an amount equal to $0.47 per gallon on all sales of wines, vermouth, and sparkling wines produced by New Jersey winerieswine isand dedicatedsupports to the “Newresearch Jerseyand Winedevelopment Promotionof Account.”wine-making  Thein bill increases the dedicationState. rate from $0.47 per gallon to $0.875 per gallon, which equals 100 percent of the tax imposed on these beverages.

      Presently, Asthe reported,Wine thisPromotion billAccount isreceives identical53.7% toof Assemblythe Billtotal No.tax revenue collected on the sale of wines, vermouth, and sparkling wines.

4732, The asremaining alsorevenue reportedis bydeposited into the committee.General Fund.

  This FISCALbill IMPACT:would increase the allocation by 46.3%, dedicating the entirety of the tax revenue generated by the sale of wines, vermouth, and sparkling wine to the Wine Promotion Account.

     Since Theassuming Officeoffice, ofmy LegislativeAdministration Serviceshas (OLS)been estimatesa thatproud increasingadvocate thefor AlcoholicNew BeverageJersey’s Taxburgeoning dedicationwine toindustry. $0.875 per gallon will increase the amount deposited in the “New Jersey Wine Promotion Account” by about $252,000, from $293,000 in FY 2019 to $545,000 in FY 2020.

 In collaboration with my colleagues in the Legislature, I have signed into law two important measures to support and grow New Jersey viticulture.  The first, P.L.2019 c.241, established a marketing and advertising campaign in the Department of Transportation to raise awareness of New Jersey’s diverse viticulture attractions.  The “Viticulture Trail Sign Program” guides residents and visitors to wineries located throughout our great State.  The second, P.L.2019 c.34, established a loan program to assist wineries and vineyards with capital expenses that is critical to the growth and success of the industry.  Beyond these legislative actions, the First Lady and I have demonstrated our strong personal commitment to – and, enjoyment of – New Jersey’s high quality wines by exclusively serving New Jersey wines at Drumthwacket receptions and events.

While I fully support New Jersey’s wineries and vineyards and am committed to this vital component of New Jersey’s agricultural industry and its undeniable contributions to our dynamic tourism economy, I cannot endorse this legislation.

 The more appropriate approach to dealing with funding choices such as those contemplated in this bill is through the annual budget process.  Funding decisions should not be made in a vacuum or through an ad hoc approach that segregates certain tax revenue and dedicates it to a particular purpose without consideration of the broader process of allocating resources to the competing programs, services, interests, and obligations of the State that our taxpayers ultimately fund.  I am confident, however, that the actions my partners in the Legislature and I have already taken to support and promote New Jersey’s wineries and vineyards will help ensure the growth and well-being of the industry without the additional funding provided by this bill.   Accordingly, I herewith return Senate Bill No.

3509 without my approval.

                                  Respectfully,      [seal]                                   /s/ Philip D.

Murphy                                     Governor     Attest:

  /s/ Matthew J.

Platkin   Chief Counsel to the Governor