Hospitality License Fees to Supplement Shrinking Tax Revenue?

With state revenues shrinking, many state and local agencies—especially those regulating the hospitality industry—are looking for increased fee mechanisms to bolster their budgets. This can lead to unforeseen and unneeded red tape, often unrelated to spending needs. One example is Oregon's SB 604, which would re-create "salesperson licenses" for individual employees and contractors of wineries, breweries and distilleries whose products are sold to on-premise and/or off-premise retailers in the state…this after the same Oregon Liquor Control Commission only a few years ago encouraged the state legislature to eliminate salesperson licenses from its statutory scheme, in an effort to streamline and do away with unnecessary process. Wineries, breweries, and distilleries are already legally accountable for the actions of their employees and contractors. But with the prospect of the proposed $200 per license (2-year term), the agency must be deciding that streamlining isn't really that great after all.

Status of Seattle & Portland Lodging Markets

Click here for some interesting slides from PKF Consulting on the Lodging Market in Seattle and Portland.

 

Tags:

Tied House Laws - Washington State

The Washington State Legislature is about to pass—and the Governor is expected to sign—HB 2040. This bill effectively wipes out tied house laws in Washington. A simple example will explain the situation:

Bill owns Bill's Distribution Inc. It distributes beer and wine in Washington. Under this new law, Bill could form his own restaurant or tavern business. It cannot operate that retail business under Bill's Distributor Inc., but could under a new name (i.e. Bill's Restaurant, Inc). As you probably know, a few years ago, Costco sued the Washington Liquor Control Board to try and set aside some of these tied house laws. It failed at the 9th Circuit. If this law passes, Costco could set up its own distribution business (under a different name) and distribute beer and wine to its sister company. Of course, as a distributor, it must allow other retailers the right to purchase its product if that product is available. In other words, it will be hard for Costco Distribution to only sell direct to Costco Inc.

What other problems could this mean to you in your state?

Question: If Costco were to set up a distribution company in Washington state, and it came to you in California (as an example) and asked you to help them get a typical retail license for a new store they were opening in Santa Barbara, how would it answer California's typical tied house question: "Do you have any interest in the manufacture or distribution of alcohol?" Costco would say it does not distribute in California, but it does in Washington. Would they be able to get a new liquor license? Would all of their retail liquor licenses in California be in jeopardy?

Rumor has it that should this bill pass, a ground swell of positive reaction in other states is expected, and it is predicted that many states will follow. I guess we will see.
 

Stimulus Package Tax Effects

The new stimulus package recently included various tax incentives that may benefit your business. A summary is attached here.

Tags:

The Greenbrier is for Sale

The 6,500-acre, 721-room Greenbrier resort is for sale. This is the site of a once-secret Cold War bunker built to house Congress in case of a nuclear attack - something everyone should have on their acquisition target list!

Tags:

Virginia Adopts Restaurant Smoking Ban

On March 9, 2009, the governor of Virginia signed into a law the latest statewide smoking ban for bars and restaurants. This was a hard-fought battle by the governor of a state with a history steeped in tobacco. Virginia joins 23 other states and Puerto Rico who have passed similar bans. However, Virginia's governor claims that this new law is the toughest in the nation’s top five tobacco-producing states.

Continue Reading...