Establishes restricted beer, wine, and cider license; provides tax credit under corporate business tax and gross income tax for loss in value to certain alcoholic beverage licenses.
The bill allows license holders to charge corkage fees for patrons who bring their own beverages and removes the existing prohibition against advertising BYOB (Bring Your Own Bottle) in light of recent judicial decisions concerning First Amendment rights. Additionally, the license fees have been structured progressively, starting at $2,000 for the first two years post-enactment and increasing thereafter. This step is intended to make it more viable for restaurant owners to enter the alcoholic beverage market without oversaturating it.
Assembly Bill A878 aims to establish restricted licenses for the sale of beer, wine, and cider within restaurants that hold a full-service kitchen. This bill addresses the limitations present under current law that restricts the issuance of plenary retail consumption licenses based on a municipality's population, which has led to shortages in some areas. By allowing a new class of restricted licenses, the bill seeks to ensure that restaurants can serve alcoholic beverages with food, enhancing customer experiences while adhering to regulatory standards.
Notably, the legislation includes tax credits to compensate existing license holders for decreased license values due to the entry of new limited licenses in the market. Under the provisions, a licensee could receive a tax credit equal to 50% of their prior purchase price spread over ten years. However, should a license owner sell or transfer their license during this crediting period, they would risk forfeiting a portion of their tax credits, raising concerns for current license holders about the potential ramifications of these transaction rules. The bill's proponents argue this will encourage fair competition, while opponents caution it may negatively affect established businesses.