By Dale J. Venturini
President & CEO RI Hospitality and Tourism Association
Recently, the Rhode Island Legislature passed a new fee structure for liquor licenses in Rhode Island. The hike in the liquor license fee was introduced as a budget amendment during the final days of the 2003 General Assembly session. In some instances, liquor license fees have increased 750-percent.
All businesses that sell alcohol - from bars to taverns to restaurants - are affected by this new law. The new fees range from $500 - $2,000 per year, depending on the class of license. For many Mom & Pop operations and other small businesses, the new law is an enormous and unexpected blow to their bottom line.
This is another example of how the hospitality and tourism industry is continually targeted by local government as a cash-ready resource that is ripe for the taking. It is no secret that our industry has faced one of the toughest years due to a softened economy, inclement weather and a strict fire safety code. In addition, our industry faced a 1-percent meals tax law this year.
The revenue that is expected from the new fee structure will go directly to the city or town in which the licensee operates. However, the enormous fee hikes stand to do more damage to the nearly 2,000 local business owners than the good that will come from returning some revenue to local communities. There is a better way to supplement the budgets of local cities and towns.
Recently, the Town Council of Bristol voted unanimously to lower liquor license fees closer to previous levels, in spite of the state law. This was voted on after the Council heard from many businesses who were outraged by the new state law. Other towns are following suit in the hopes of lowering the new fees.
The Rhode Island Hospitality and Tourism Association is working hard to repeal this new tax in the next legislative session. And, there’s a good chance that it will be repealed. The State needs to learn that taxing the very resource that makes Rhode Island such a popular tourism destination is not the answer for failing budget shortfalls.
The Rhode Island Hospitality and Tourism Association is working hard to repeal this new tax in the next legislative session. And, there’s a good chance that it will be repealed. The State needs to learn that taxing the very resource that makes Rhode Island such a popular tourism destination is not the answer for failing budget shortfalls.
About the Rhode Island and Tourism Association:
With more than 500 foodservice and hospitality members in Rhode Island, the Rhode Island Hospitality and Tourism Association has been the voice of the hospitality and tourism industry in the state for 19 years. For more information regarding the Rhode Island Hospitality and Tourism Association, please visit www.rihospitality.org.
