Liquor Laboratory

How Much is a Liquor License in California? Full Guide (2024)

How Much is a Liquor License in California

If you’re considering starting a bar, restaurant, or any establishment that sells alcohol in California, obtaining a liquor license is a crucial step.

The process can be complex and comes with a cost, depending on the type of license you need. But, “How much is a liquor license in California?”

Today, we’ll explain the different liquor license prices, including the application fees, miscellaneous fees, production-based fees, or seasonal fees involved.

California’s Liquor Licenses Overview & Costs

Liquor Bottle on a Store Shelves

California Department of Alcoholic Beverage Control (ABC) regulates the sale of alcoholic drinks within the state.

“These grants will help reduce youth access to alcohol and increase safety in communities throughout California.” -Joseph McCollough, ABC Chief Deputy Director

The costs of a liquor license depend on various factors, including the license types and the establishment’s location.

Generally, the license fees range from $990 to $17335 (up to $400,000), which also depends on the nature of your business.

California Liquor License Cost

Application Fees

The application fees vary based on the type of license you’re getting. Generally, for priority standard applicants, the cost ranges from around $17,335 and $990 for non-priority licenses.

Annual Fees

California law requires applicants to pay annual fees to maintain their licenses. The annual fees charged to existing license holders can be any of the following:

  • Population-based fees: Around $250-$1355 for a population over 40,000, depending on the license type.
  • Production-based fees: Annual fee depends on number of barrels produced. For instance, a winegrower license requires a yearly fee of approx. $135/5,000 gallons produced.
  • Seasonal license fees: The annual license fee depends on how many months per year your business operates. For on-sale general licenses, the cost ranges from $135-$1300, which is also influenced by the number of population.

Note: California Department of Alcoholic Beverage Control (ABC) no longer releases New Seasonal Licenses.

Surcharges

Aside from the annual fee, additional surcharges might be associated with your existing license. The fee varies depending on these factors:

  • CHP Surcharge: $10, which applies to the majority of permanent license holders
  • Appeals Board Surcharge: 3% of the license fee, rounded to the closest $5 increment, which also applies to all permanent licenses.
  • Business Practices Fee: Around $24-$52, depending on the license type

Penalties For Late Payment (Annual Fees)

You should pay annual fees on time to maintain your liquor license’s validity.

  • 60 days after the deadline: 50% of the license fee will be added to your annual fee
  • 60-90 days after the deadline: 100% of the license fee will be added to your annual fee
  • Not Paying 90 days after the deadline: License will be revoked.

4 Types Of Liquor Licenses A Proprietor Must Secure 

Businessman Holding a Document

1. Type 20

This is commonly referred to as the Off-Sale Beer and Wine License, allowing you to sell beer and wine for off-site consumption only.

Liquor stores [1], gas stations, grocery stores, and convenience stores have this type of license.

2. Type 21

This Off-Sale General License allows the sale of beer, wine, and other alcoholic beverages [2] for consumption off-site.

3. Type 47

Also known as an On-Sale General Eating Place License, this allows the sale of all types of beer, wine, and liquor for consumption on-site.

4. Type 48

Also called the On-Sale General Public Premises License, you can sell liquor for on-premises consumption. Bars, nightclubs, and establishments where the primary focus is to serve alcohol use such a license.

Related Posts:

Application Fees For General Licenses (TABLE)

Application Type

Application Fee

Converting Seasonal General License (Type 49) to a year-round license (Type 47) pursuant to Section 23826.8

$17335

Type 78 – Wine, Food, and Art Museum

$13140

General – Priority (Types 21, 47, 48, 57, 71, 72, 75, 83, 87, 88, 99)

$17335

Type 90 – On-Sale General Music Venue

$17335

Type 62 – On-Sale General Dockside

$2190

Type 70 – On-Sale General Restrictive Service

$6570

General – Non-Priority (Types 51, 52, 53, 54, 55, 56, 76, 80)

$990

Type 64 – Special On-Sale General Theater

$1095

Type 47 – On-Sale General Eating Place on Public Property

$6570

Non-General Licenses (TABLE)

Application Type

Application Fee

Non-General (Types 06, 26, 28, 82)

$110

Non-General (Except Types 06, 26, 28, 82)

$990

Non-General (Duplicate Type 02)

$480

Factors That Affect The Liquor License Costs

Person Holding a Document

Location/County

The California liquor license cost differs based on the location/county of your establishment. Urban areas with high demand for alcohol licenses may have higher prices than less populated regions.

License Type

Different license types, such as Type 20, Type 21, Type 47, and Type 48, have varying fees due to the scope and permissions they offer.

New Application vs Existing License Transfers

Obtaining a new liquor license may have different costs compared to transferring an existing license.

License transfers might involve additional fees, such as a change of ownership and premises, double transfer fees, and other ABC license fees (including operating fees and other miscellaneous fees).

How Do You Apply for A California Liquor License?

To apply for a liquor permit in California, you must first determine the specific type of license you need.

“Unlocking spirits, navigating costs; California’s liquor permits define ventures.” – Liquor Laboratory 

Gather all the necessary documentation, complete the application form, and submit it to the California Department of Alcoholic Beverage Control (ABC).

The ABC will review your application and assess your suitability for obtaining an ABC license. More requirements must be presented, particularly if you’re applying for multiple licenses. But what time do they stop selling liquor in California?

FAQs Related to How Much is a Liquor License in California?

How much is a California Type 20 license?

A California Type 20 license costs around $435 annually.

How hard is it to get a liquor license in California?

It can be hard to get full liquor licenses in California due to the requirements, paperwork, and waiting periods, plus the fees.

How long does it take to get a liquor license in California?

It takes about 75 days for a person-to-person transfer and 90 days for an original liquor permit in California.

Why are liquor licenses so expensive in California?

California liquor licenses are expensive due to high demand, limited availability, complex regulations, and the potential for significant revenue generation from alcohol sales.
Licenses start from a few hundred dollars to thousands, depending on the ABC license.

How much does a liquor license cost in California?

The cost of a liquor license in California varies depending on the type of license, the location, and whether it’s a new application or a transfer of an existing license. Prices can range from several thousand to several hundred thousand dollars.

What types of liquor licenses are available in California?

California offers various types of liquor licenses, including licenses for restaurants, bars, clubs, hotels, retail stores, breweries, and wineries.

What factors determine the cost of a liquor license in California?

Several factors influence the cost of a liquor license in California, including the type of license, the population density of the area, the demand for licenses, and the specific regulations of the local government or county.

Do liquor license prices vary depending on the county or city in California?

Yes, liquor license prices can vary significantly depending on the county, city, or even the specific neighborhood within California. Urban areas or tourist destinations often have higher demand and thus higher prices for licenses.

Are there additional costs associated with obtaining a liquor license in California?

In addition to the purchase price of the liquor license, applicants may need to pay various fees, including application fees, processing fees, background check fees, and legal fees.

On A Final Note

There are various operating permits in California, with event permits, zoning permits, and liquor licenses as the popular ones.

To sell alcohol, especially on multiple premises, securing a liquor license is crucial, which comes at a reasonable price. General licenses range from $990 to $17335, and $50 to $100 for non-profit temporary licenses.

We suggest visiting the local ABC office to know the type of license and the actual price it associates with.

References:

  1. https://blogs.scientificamerican.com/observations/yes-liquor-stores-are-essential-businesses/
  2. https://www.britannica.com/topic/alcoholic-beverage
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