N.J. Admin. Code § 2:76-27.7

Current through Register Vol. 56, No. 19, October 7, 2024

Section 2:76-27.7 - Financial reporting procedures for winery special occasion events

(a) Upon request by the Board or Committee, the winery will be required to provide additional documentation within 60 calendar days from the date of request, as may be necessary for the Board or Committee to verify compliance with N.J.S.A. 4:1C-32.7 et seq. The documentation shall be prepared consistent with the winery's accounting method as designated in the winery's Federal income tax return for the annual accounting period. The additional documentation provided must conform to the following procedures:

1. The winery will be required to submit accounting records and related documentation/schedules to allow the Committee to verify compliance with this section. These accounting records include the following:

i. All calendar year New Jersey Alcoholic Beverage Tax forms as filed (with supporting schedules), including, but not limited to, Winery Manufacturer's Tax Sales Report (Form R-1-W) and Inventory Control of Wineries (Form R-41);

ii. All calendar year New Jersey Sales and Use Tax forms as filed;

iii. Detailed schedules of annual gross income and annual gross income from special occasion events from the following:

(1) On-premises tasting room sales--wine only;

(2) On-premises tasting room sales--non-wines, and by type;

(3) Off-premises tasting--wine sales;

(4) Off-premises non-wine sales;

(5) Wine sales at special occasion events;

(6) Non-wine sales at special occasion events; and/or

(7) Admission fees, rental fees, setup, breakdown, cleaning fees, catering fees, food sales, and all other revenue that is not directly a result of the sale of the agricultural output of the winery, but is generated by the winery in conjunction with conducting special occasion events.

iv. Names and addresses of any controlled group of entities connected to the winery that are involved in special occasion events, and annual gross income associated with each entity.

v. Winery accounting records for the annual accounting period to support wine/non-wine sales including:

(1) Internal point-of-sale (POS) sales reports;

(2) Accounting books and records (that is, QuickBooks, Excel, or similar accounting software).

2. The winery shall supply copies of its most recent Federal income tax return to the Board or Committee and shall include copies of its accounting records and financial statements as may be necessary to support the entries on its Federal income tax return, as for example, a reconciliation of any difference between accounting records, financial statements, and the Federal income tax return. The winery's annual accounting period, for purposes of compliance with this subchapter, shall be the calendar year even if a fiscal year is utilized for preparation of Federal income tax returns.

N.J. Admin. Code § 2:76-27.7

Adopted by 49 N.J.R. 3585(a), effective 11/20/2017