UPDATE: Since publishing this we have spoken with the PLCB. Here is why the below will not apply to most craft breweries in PA.
As we previously reported when Governor Wolf had announced waiving licensing fees for those in the hospitality and service industry there was some confusion on the message from the Pennsylvania Liquor Control Board (PLCB). A spokesman for the organization released a statement that suggested the move may not be possible.
However, after a 2-1 vote by the PLCB they have confirmed that license fees for 2021 will be waived; a move that is suggested to save the industry over 27 million dollars in total based on fees collected during the previous year (a savings of a few hundred dollars per each business in the brewing industry).
In a press release by the organization Chairman Tim Holden is quoted as saying the following about the decision;
“Following the Governor’s request last week to waive license fees and provide some relief to struggling businesses, the PLCB did its due diligence in evaluating our authority to waive fees authorized by various state laws, as well as the fiscal impact of doing so. We believe it’s the right thing to do in support of our restaurants, bars, and gathering places, so we’re glad next year to ease the financial burden to some extent for these local businesses.”
The release goes onto say that license and permit fees being waived vary from $30 to $700 per fee and include the following:
Filing fee, license fee, renewal fee, validation fee, renewal/validation surcharge, amusement permit fee, Sunday sales permit fee, and extended hours food license fee. Safekeeping extension fees, which start at $5,000 or $10,000 per year depending on the county where a license is located and allow a license to preserve an inactive license beyond two years, will also be waived in 2021. While these license fees will be waived through 2021, licensees will still be required to timely file validation and renewal applications to keep licensees current and to avoid late-filing fees.
The PLCB will require all licensees to file all documents and pay all fees necessary to bring their license up to date for 2020 by Dec. 31, 2020. Additionally, licensees not actively using their licenses must put their licenses in safekeeping by Dec. 1, 2020 (there are no fees associated with putting a license in safekeeping), but licenses already in safekeeping don’t need to extend their safekeeping periods.
The announcement from the PLCB goes on to say the following regarding license holders; “Manufacturers, beer distributors and transporters for hire – businesses less impacted by COVID-19 restrictions, will be required to pay license fees in 2021.” From a craft brewery perspective, this is important to note as breweries with a brewing operation on site are listed as “manufacturers” of beer. We have reached out to the PLCB for more clarity on this and will update if/ when we hear back.
You can read the full press release at the link above, and also view the advisory notice that was issued October, 28th 2020 here.
