The current state liquor license quota statute dates back to the mid-1940s. New Jersey law limits new liquor licenses to one per 3,000 residents and once the community’s quota is realized the only option is to obtain a license on the private market which may go for as much as $2 million dollars in certain areas. This system creates an obstacle for ICSC members who look to develop or re-develop properties in areas where the quota is already met. The liquor license statutes are generally viewed as outdated and restrictive to economic growth.
Currently, the legislature is considering several proposals including Deputy Speaker Burzichelli’s bill, which creates a new classification of liquor licenses for restaurants called R1 and R2 Licenses. These licenses are limited to table side service and prohibit bar service. In addition, to offset any devaluing of current license values, the bill proposes a tax credit for those businesses. ICSC and other real estate trade associations have been working with Deputy Speaker Burzichelli on this issue.
Recently, the New Jersey General Assembly Regulatory Oversight and Reform and Federal Relations Committee held a hearing on bills affecting the liquor license statutes. Herb Tyson ICSC Vice President of State & Local Government Relations, and George Jacobs ICSC Northern New Jersey Government Relations Committee Chairman testified in favor of reforming the liquor license statutes. The New Jersey legislative session ends on January 8, 2018, all bills must be passed by then and approved by the Governor to go into law.
For more information, contact ICSC State & Local Government Relations Manager Stephen Burm at sburm@icsc.org.