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Bar and restaurant owners across the city are reeling from a significant increase in liquor license renewal fees, which have nearly doubled. The new fee schedule, which was announced to owners this week, raises the annual renewal cost for most of those selling beer, wine and liquor from $1,320 to $2,336.
John Sachs, a local bar owner, expressed his dismay, saying, “To double the fee when it’s been the worst three years I’ve been in the city … it’s just bad timing.” He added, “Honestly, it’s a real big burden. Everything is going up but us.”
The enhanced fees are expected to increase revenues by $823,185. The new schedule was approved last year following a brief 5-minute Senate Finance Committee hearing, during which only city representatives testified. They outlined plans to use the additional funds to hire more liquor inspectors. “We think this would allow us to better enforce the rules and regulations and make sure everyone is playing by those rules,” a representative said during the hearing.
Gia Blatterman, a restaurant owner, acknowledged the need for government strength but emphasized the importance of supporting businesses. “We know the government needs to be protected and be strong, but they need good businesses to be strong,” she said.
The fee increase comes on the heels of the governor’s recent pledge to reduce the corporate tax rate and make Maryland more business-friendly. “We’re going to close corporate loopholes and lower the tax rate to make Maryland more business-friendly,” the governor said last month.
Sachs criticized the governor’s approach, stating, “It’s smoke and mirrors. We’re gonna give you this and make it look good, but we’re gonna increase it on this side.”
For many small businesses already struggling to survive, the financial impact of the fee hike is daunting. “Where do you go from here? I mean, you can’t sell a dish of pasta for $50,” said Blatterman.
“We need to get together and find a way to make our voices heard because we can’t continue to take these increases and be sustainable. It’s just impossible,” said Sachs.
Have a news tip? Contact reporter Jeff Abell at jabell@sbgtv.com.