146th GENERAL ASSEMBLY

 

FEE IMPACT STATEMENT

 

DESCRIPTION:    AN ACT TO AMEND TITLE 4 OF THE DELAWARE CODE RELATING TO ALCOHOLIC LIQUORS.

 


 

In accordance with 29 Del. C. §913, the following information is provided relating to Alcoholic Liquors.

Description of the Legislation

This Act would increase the permissible distance between package stores and between taprooms.  This Act would also increase the application fee for an off-premise license (package store) from $1,000 to $50,000, and would increase the application for transfer of an off-premise license from $1,000 to $5,000.

Affected Entities

Persons who wish to apply for an off-premise license or for the transfer of an off-premise license.

Fiscal Impact Estimate

The application fee for an off-premise license would increase from $1,000 to $50,000.  Last year, there were approximately 6 applicants for new off-premise licenses.  It is anticipated that the number of applications would dramatically decrease.  The application fee for the transfer of an off-premise license would increase from $1,000 to $5,000.  Last year there were approximately 22 applicants for the transfer of an off-premise license; this is also expected to decrease. 

It is indeterminable how many applications would be filed if this Act were to pass.  If there were either no new off-premise license applications, or just 1 new application, and 10 transfer license applications, increased revenue would be between $22,000 and $72,000.

Intended use of Revenue

Of the proposed $50,000 fee for a new package store license, $7,500 would be distributed to the Commissioner of Alcohol Beverage Control, $15,000 to the Division of Alcohol, Tobacco and Enforcement (DATE), and $25,000 to Delaware’s State Public School Improvement Fund. 

Of the proposed $5,000 fee for the transfer of a license, $3,000 would go to the Commissioner of Alcohol Beverage Control, and $2,000 would go to DATE.

 

Office of Controller General

June 26, 2012

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