The Garden State Liquor Retailers Association (GSLRA), representing hundreds of independent liquor retailers across New Jersey, is calling on state lawmakers to reject proposed increases to the alcohol excise tax, warning it would severely harm small businesses, raise consumer prices, and ultimately reduce state revenue.
“As small, family-run retailers, we’re already managing inflation, increased overhead, and supply chain disruptions,” said Amrish Vakil, president of GSLRA. “Layering on an alcohol tax hike—on top of federal tariffs that could increase import costs by more than 20%—is a one-two punch that many of us cannot absorb.”
In his final budget, Gov. Phil Murphy proposed a 10% tax increase on alcoholic beverages that some estimates say would bring in $18.5 million. According to the state Division of Taxation, the alcoholic beverage tax is applied to the first sale or delivery of alcohol to New Jersey retailers and is based on the number of gallons sold or disposed of in New Jersey. This includes the sales of beer, liquor, still wine, vermouth, sparkling wine, mead, and hard apple ciders. The tax is collected from licensed manufacturers, wholesalers, distributors, breweries, wineries, and distilleries. The tax will be passed on to the consumer.
The association said that New Jersey’s current alcohol excise tax structure gives the state a competitive edge, drawing customers from neighboring states like New York and Pennsylvania. They say a tax hike would erase this advantage, reduce cross-border sales and lead to a possible decline in overall tax revenue.
“We see shoppers everyday who travel across state lines to buy legally and affordably in New Jersey,” said Prakash Patel, owner of Cherry Hill Spirits and Wine in Camden County. “If this tax passes, those sales—and that revenue—will disappear overnight.”
“Retailers like me operate on razor-thin margins,” added Nikul Patel, owner of Joe Canal’s Discount Liquors in Morris County. “We’re not big-box stores—we’re families and community businesses. This tax doesn’t just hurt sales, it hurts people.”
GSLRA is urging members of the Senate and Assembly Budget Committees to work with stakeholders on more balanced and sustainable revenue strategies. The Garden State Liquor Retailers Association was formed in 2023.
