Scotch Plains Council Calls for Liquor License Reform to Help Spur Redevelopment
SCOTCH PLAINS – October 12, 2021 - It is no secret that New Jersey has some of the most archaic liquor license laws in the nation, limiting business growth and downtown revitalization throughout the state.
That is why the Scotch Plains Council approved a resolution on October 5, in which the municipality is joining the Liquor License Reform Alliance through Downtown New Jersey, a statewide advocacy group.
“One of the prime reasons we are redeveloping our downtown is to create a place where our residents can socialize and connect,” said Mayor Josh Losardo. “A key to this success is to create the type of amenities that people will want to visit, such as unique restaurants and bars. But if Scotch Plains continues to be limited under 60-year-old liquor license laws, how can we truly fulfill our vision for our downtown?”
Under state law, the number of liquor licenses is determined based on a municipality’s population – one license per 3,000 residents. The limited number of licenses makes obtaining one to be very cost prohibitive, especially for new businesses. Licenses are sold privately from one license holder to another, averaging $350,000 statewide. But in certain desirable municipalities, liquor licenses can sell for more than $1 million at auction, creating an insurmountable obstacle for most entrepreneurs.
On top of the cost of obtaining the license, there is an annual renewal fee upward of $2,500. When compared to nearby states, the relative magnitude of this expense to New Jersey restaurant owners is clear. In New York, a restaurant liquor license is obtained directly from the state and runs upward of $4,500 (depending on location) every two years. In Connecticut, a restaurant liquor permit is just $1,550 a year.
“The excessive cost in New Jersey discourages restaurants from opening in our downtown, which in turn limits foot traffic to stores,” said Councilman Matt Adams. “This limited traffic not only deters new retail from moving into town, but also causes many existing businesses to shut down because of high operating costs that can’t be passed on to the customer.”
The Scotch Plains council is hoping that reformed liquor license laws will lead to more choice, more jobs and more tax revenue, as the town charts its redevelopment. There is now proposed state legislation (S.2964/A.4925) that calls for the state Legislature to expand the state’s liquor license laws.
“I salute Scotch Plains for its support of this important legislation that is designed to help downtowns redevelop and thrive,” said Sen. Vin Gopal (D-Monmouth), a bill sponsor. “Having vocal supporters across the state, through the work of Scotch Plains, Downtown New Jersey and others, will hopefully amplify this legislation and push it to the governor's desk for signature in the near future.”
If you are a restaurant owner, local or regional chamber organization, elected official, or individual that would like to get involved, please contact Downtown New Jersey at 201-472-0356 or