Some Utahns feel there’s a liquor license shortage in the state. The Department of Alcoholic Beverage Services only issues licenses to bars and restaurants ready to open since there are a limited amount. Business owners say this can be a burden as they must invest in a restaurant or bar without the guarantee of a license.
However, there are also many Utahns who don’t want to see more licenses, fearing that could increase DUIs.
Director Tiffay Clason said that’s why lawmakers have been working to balance the need for more licenses with safety in this year’s liquor bill, HB 548.
“They've worked so hard to try to balance economic development, small business needs, with public safety and health goals and needs," she said. "We all want to continue to enjoy having low DUI rates, we want to continue to enjoy having low underage drinking rates and statistics.”
The bill would increase the number of liquor licenses available over seven years. Starting in fiscal year 2025, the bill would allow one liquor license for every 9,778 residents, down from 10,200. That number will continue to go down until 2031, when there will be a liquor license for every 7,246 residents.
“We still have probably the least density in the country," Clason said, "but also for those folks who are wanting to see more licenses open up, this definitely brings us closer.”
The bill would also increase the markup on wine and spirits from 88% to 88.5%. That means if a wholesaler sells a bottle of wine for $10, a liquor store would charge $18.85 for the bottle instead of $18.80.
There’s also an incremental tax increase on beer over the next four years. Clason said consumers would pay one to three cents more for grocery store beer. The increased tax on beer would also help fund three new compliance officers.
“Those three employees will fall under DPS, public safety, those will not be my employees,” Clason said. “Of course, we will work really collaboratively and in tight partnership.”
The bill passed through the Utah House earlier this week and is now in the Senate.
Utah’s legislative session ends March 1.
