New Jersey Statewide Rule
New Jersey Cottage Food Operator Permit: $50,000 Cap, Shelf-Stable Food Only, No Mail Order
Key Facts
- Permit
- Cottage Food Operator Permit, NJ Department of Health, Public Health and Food Protection Program
- Rules and effective date
- N.J.A.C. 8:24-11, adopted as R.2021 d.087, effective October 4, 2021
- Sales cap
- $50,000 gross annual sales before deduction of taxes and operating expenses
- Fee and term
- $100.00 application, valid two years, $100.00 renewal, file renewal 45 days before expiry
- Allowed food
- Non-TCS food only, in 19 listed categories, plus other non-TCS food approved on written application
- Where you may sell
- Operator's home with no onsite eating, consumer's NJ home, NJ farmers' market or farm stand, NJ temporary retail food establishment
- Prohibited outlets
- United States postal mail, common carrier, interstate commerce, wholesalers, retail food establishments
- Required label line
- "This food is prepared pursuant to N.J.A.C. 8:24-11 in a home kitchen that has not been inspected by the Department of Health."
Summary
New Jersey allows for-profit home food production only through a Cottage Food Operator Permit issued by the Department of Health's Public Health and Food Protection Program under N.J.A.C. 8:24-11, rules that took effect on October 4, 2021. The permit lets you make cottage food products in the private kitchen of your own residence and at no other location, and to sell them without health authority inspection, but gross annual sales before taxes and operating expenses may not exceed $50,000. Only non-TCS food qualifies, meaning food that does not need time or temperature control for safety, and the rule lists 19 categories from baked goods and candy to fruit jams, dried pasta, nut butters and roasted coffee. Delivery is limited to five places inside New Jersey, and a cottage food operator may not ship by United States postal mail or common carrier, sell across state lines, sell to a retail food establishment or a wholesaler, or let customers eat on the premises.
(a) A Cottage Food Operator Permit authorizes a holder thereof: 1. To produce cottage food products in the private kitchen of the operator's residence and at no other location; and 2. Subject to N.J.A.C. 8:24-11.5, to distribute cottage food products to consumers thereof without being subject to initial or periodic inspection by a health authority and other requirements applicable to retail food establishments pursuant to this chapter and the Public Health Practice Standards of Performance for Local Boards of Health in New Jersey at N.J.A.C. 8:52, other than as specified in this subchapter. ... (a) A cottage food operator shall not deliver or relinquish cottage food products: 1. At a location other than: i. The home of the cottage food operator, but not for onsite consumption; ii. The home of the consumer, provided the home is in New Jersey; iii. A New Jersey farmers' market or farm stand; iv. To consumers, at a New Jersey temporary retail food establishment; or v. In New Jersey, to the consumer, provided applicable law does not otherwise prohibit the delivery or relinquishment at the location; ... (b) The gross annual sales (that is, before deductions of taxes and operating expenses) that a cottage food operator generates from the sale of cottage food products shall not exceed $ 50,000.
Full Breakdown
The gateway rule is N.J.A.C. 8:24-11.1(a): anyone who produces, distributes or sells food to consumers must either hold a Cottage Food Operator Permit or comply with the laws that apply to retail food establishments. Because N.J.A.C. 8:24-2.1(c)1 forbids running a retail food establishment in a private home, the permit is the only lawful route for a home kitchen in New Jersey. The application goes to the Public Health and Food Protection Program on the form at the N.J.A.C. 8:24-11 Appendix, with three attachments: a certificate showing the applicant is a food protection manager in good standing with an accredited program, proof of safe water, and the nonrefundable fee. Proof of water is a microbiological total coliform analysis of the private well, using samples collected no earlier than 60 days before the filing date, if the kitchen is on a well, or a copy of the most recent water bill if it is not. The Department runs a completeness review and writes to the applicant about any deficiency; an application not corrected within 30 days of that notice is deemed abandoned. Once the application is complete the Department shall issue the permit.
The fee structure is set at N.J.A.C. 8:24-11.6. The application fee is $100.00, the permit runs for two years from the date of issuance, renewal is another $100.00, and the rule tells operators to file the renewal no later than 45 days before the current permit expires to avoid a lapse. There is no per-inspection fee, because N.J.A.C. 8:24-11.2(a)2 exempts a permit holder from the initial and periodic inspections and from the other retail food establishment requirements in chapter 24 and in the Public Health Practice Standards of Performance for Local Boards of Health at N.J.A.C. 8:52.
What you may make is defined rather than left open. A cottage food product is non-TCS food, and the definition at N.J.A.C. 8:24-1.5 enumerates baked goods including bread, rolls, biscuits, cakes, cupcakes, pastries and cookies; candy including brittle and toffee; chocolate-covered nuts and dried fruit; dried fruit; dried herbs, seasonings and mixtures of them; dried pasta; dry baking mix; fruit jams, jellies and preserves; fruit pies, fruit empanadas and fruit tamales, expressly excluding pumpkin; fudge; granola, cereal and trail mix; honey and sweet sorghum syrup; nuts and nut mixtures; nut butters; popcorn and caramel corn; roasted coffee and dried tea; vinegar and mustard; and waffle cones and pizzelles. Anything else must be cleared first: the nineteenth item is other non-TCS food approved upon written application to the Public Health and Food Protection Program. Cheesecake, custard pies, buttercream that needs refrigeration and anything else requiring temperature control fall outside the permit entirely.
Where you may hand the food over is the tightest part of New Jersey's scheme. N.J.A.C. 8:24-11.3(a) permits delivery only at the operator's own home but not for onsite consumption, at the consumer's home if that home is in New Jersey, at a New Jersey farmers' market or farm stand, to consumers at a New Jersey temporary retail food establishment, or anywhere else in New Jersey to the consumer where other law does not prohibit it. The same subsection bars delivery to anyone who is not the consumer, to a wholesale establishment as defined at N.J.A.C. 8:21-9, to a retail food establishment, by United States postal mail or common carrier, and in interstate commerce. So a New Jersey cottage food operator cannot mail cookies to a customer in Pennsylvania, cannot supply a local coffee shop, and cannot put out tables for people to eat at the house. N.J.A.C. 8:24-11.2(b) does allow the internet and the telephone for everything short of handing over the goods: order placement, payments, marketing and advertising, and other business activities are permitted ancillary transactions so long as the delivery itself happens in New Jersey under 11.3(a). The money ceiling is at N.J.A.C. 8:24-11.3(b): gross annual sales, before deductions of taxes and operating expenses, may not exceed $50,000.
Labelling and disclosure are prescriptive. Under N.J.A.C. 8:24-11.4(c) every product carries labels or tags stating the common name, the ingredients in descending order of predominance by weight, the word "Contains" followed by any major food allergens, the operator's name, business name and Cottage Food Operator Permit number, the name of the municipality where the product is prepared followed by "New Jersey" or "NJ", and the sentence "This food is prepared pursuant to N.J.A.C. 8:24-11 in a home kitchen that has not been inspected by the Department of Health." At a farmers' market or any point of sale away from the operator's or the consumer's home, the permit and a placard bearing that same sentence must be on conspicuous and unobstructed display. At the operator's or consumer's home the permit only has to be produced for inspection on request.
The permit does not displace municipal control. N.J.A.C. 8:24-11.1(e) requires an applicant to ascertain and comply with the applicable local laws of the municipality where the applicant seeks to operate, which is why New Jersey's own application process asks for local zoning approval before the state will act. And the exemption from routine inspection is not an exemption from entry: N.J.A.C. 8:24-11.5 preserves the power of a health authority under N.J.S.A. 24:1-1 et seq., 24:2-1 et seq., 24:3-1 et seq. and 26:1A-16 through 19 to enter, examine and survey any premises including a cottage food operator's home kitchen, both to confirm compliance and to investigate complaints of contamination, foodborne illness, misbranding or adulteration.
Violations & Penalties
C. 8. A. A. 26:1A-10, and may suspend, revoke or refuse to issue or renew a Cottage Food Operator Permit, where the applicant or holder fails to comply with subchapter 11, with Titles 24 and 26 of the Revised Statutes, or with any other applicable rule, or where a health authority determines the person poses a threat to public health, safety or welfare. A summary suspension takes effect on the date it is issued when continued operation poses an immediate or serious threat, and the operator then has 30 days from the notice to petition the Commissioner in writing for emergency relief or forfeit that right; the suspension stays in force unless relief is granted by the Department or a court. A. , and monetary penalties. C. 1:1. A. , denial of a permit or renewal, or revocation of an existing permit.
Frequently Asked Questions
Can I ship my baked goods to customers out of state?
What is the sales limit and what counts toward it?
Can I sell cheesecake, custard pies or anything that needs refrigeration?
Does the state permit override my town's rules?
Will an inspector come to my kitchen?
Can customers come to my house and eat what I bake?
Sources
- NJ Department of Health, Cottage Food Operator Rules (N.J.A.C. 8:24-11)
- NJ Department of Health, Notice of Adoption, N.J.A.C. 8:24-1.5 and 8:24-11 (R.2021 d.087, effective October 4, 2021)
- NJ Department of Health, Notice of Proposal, N.J.A.C. 8:24 cottage food operator rules (definition of cottage food product)
- NJ Department of Health, Cottage Food Operator Permit program
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