BUFFALO, N.Y. — Senator Tim Kennedy (D-Buffalo) is calling on the State Liquor Authority to temporarily cut liquor license renewal fees during a time where businesses are struggling due to the coronavirus pandemic.
Kennedy wants to see the change in hopes that it will help businesses that have struggled financially or who have see decreased beverage sales.
"At a time when these liquor licenses simply are not providing a reliable income, providing licensing fee relief is the right and just thing to do," Kennedy said.
The NYS Restaurant Association supports Kennedy's efforts to change the renewal fee. Kennedy suggested in his letter to the state that different ideas could be evaluated, such as cutting the fee in half or waiving it this year.
“The financial assistance proposed by Senator Kennedy will not only provide much needed relief but also assist in displaying our leadership's commitment to keeping New Yorkers safe, including our businesses," according to Cory Muscato, partner at Lockhouse Distillery and president of the New York State Distillers Guild.
Kennedy says that fees for a two-year renewal of a liquor license, in Buffalo and other cities its size, typically costs over $3,000.
You can read the full letter here:
December 1, 2020
Honorable Andrew M. Cuomo
Governor of New York State
New York State Capitol Building
Albany, New York 12224
Dear Governor Cuomo,
Thank you for your continued leadership as our state and nation work to contain the growth of the Covid-19 pandemic. I write to urge you and your administration to explore new and creative ways to assist our state’s locally-owned restaurants and bars as they struggle to keep their doors open. Specifically, I urge action to ease the financial burden of renewing an on-premises liquor license. With a recent survey from the New York State Restaurant Association suggesting that nearly two-thirds of our state’s restaurants may close by the end of the year, it is critical that we take action to save this important part of our economy and culture.
The basic Class B fee for an on-premises liquor license, which would apply in the cities of Buffalo, Rochester, Syracuse, and Yonkers, as well as Staten Island, amounts to $3,072. While local communities are rallying behind our neighborhood establishments by ordering takeout meals, and while New York State has eased rules allowing alcohol to be purchased with takeout orders, the simple fact is that many bars and restaurants rely on alcohol sales to make their payroll and keep the lights on. At a time when budgets are already stretched to the breaking point, many restaurants will struggle to justify paying over $3,000 to renew a license that they will not be able to fully avail themselves of. I strongly urge action to remedy this.
One possibility is to temporarily lower license application and renewal costs, perhaps by 50%, making the expense more affordable for struggling businesses. Another option is to waive the fee for the next renewal while charging the full cost of the next renewal after that. In essence, this would allow businesses to amortize the cost over a period of four years instead of two, while still going through the regular approval process every two years. Should you and the State Liquor Authority have further ideas of how to ease this burden, I would be fully open to discussing those as well.
We all saw the major impact of the lockdown earlier this year on bars and restaurants. According to the NYS Restaurant Association, in April, roughly “80% of New York’s restaurant workforce had been laid off or furloughed since the beginning of March, totalling 527,000 jobs.” This body blow to the industry was cushioned by assistance from the Federal Government through the Paycheck Protection Program and Pandemic Unemployment Assistance. Unfortunately, as we enter the winter months and see increased Covid-19 positivity rates, those programs will not be there to help, requiring New York State to do what it can.
For these reasons, I strongly urge New York State to explore new and creative ways to provide relief for our state’s locally-owned bars and restaurants. Thank you for your continued efforts to keep New Yorkers safe and for your attention to this important matter. Should you have any questions, I welcome your call.
Sincerely,
Timothy M. Kennedy
New York State Senator, 63rd District
Cc: Chairman Vincent G. Bradley, State Liquor Authority