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Possible New Tax On Alcohol Sales In Boston

The Boston Globe reported today that two Boston city councilors have filed a “home rule petition” seeking approval of a 1 to 2 percent sales tax on all retail sales of alcoholic beverages within Boston (whether in restaurants, bars, supermarkets or package stores).  The substantial revenues that would be collected – expected to reach millions of dollars annually – would be earmarked exclusively for support of substance abuse prevention and treatment programs.

The proposal was offered by City Council President Bill Linehan and City Councilor Frank Baker.  In order to go into effect, it would need to first be passed by both the Boston City Council and the State Legislature.  The Globe reported that Mayor Walsh released a statement sympathetic with the goals of treatment programs, but was non-committal regarding passage of the proposed tax.  Alcoholic beverages are already subject to an excise tax, and a state-wide sales tax at the retail level passed by the Legislature in 2009 was repealed by voters in a statewide referendum in 2010.

The Globe also reported that the proposal for a new tax on alcohol sales was quickly opposed by several industry groups.

Bottle-Keep Service Comes to Boston

A new restaurant will soon be opening in Downtown Crossing and with a unique service that will set it apart from other options in the city. Mast’ Restaurant located at 145 Province Street will have a bottle-keep service, which according to general manager Nicholas Garoufalis does not exist anywhere else in the city.

A bottle-keep service allows patrons to store unfinished bottles of liquor at the restaurant in their name for future use. The bottle will be kept in the name of the purchaser at the restaurant and can also be gifted to other friends. This service is seen in other parts of the country and is popular oversees in places like Japan.

204 C.M.R. 2.18 allows a section 12 licensee to reseal a bottle of wine for a purchaser to take off the premises. The regulation does not address liquors, or resealing to keep at the licensed premises.

204-4.03 prohibits certain practices which are close to the bottle-keep service but are factually different. These include:

(a) offer or deliver any free drinks to any person or group of persons;

(b) deliver more than two drinks to one person at one time;

(c) sell, offer to sell or deliver to any person or group of persons any
drinks at a price less than the price regularly charged for such drinks
during the same calendar week, except at private functions not open to
the public;

(d) sell, offer to sell or deliver to any person an unlimited number of
drinks during any set period of time for a fixed price, except at private
functions not open to the public;

(e) sell, offer to sell or deliver drinks to any person or group of
persons on any one day at prices less than those charged the general
public on that day, except at private functions not open to the public;

(f) sell, offer to sell or deliver malt beverages or mixed drinks by the
pitcher except to two or more persons at any one time;

(g) increase the volume of alcoholic beverages contained in a drink
without increasing proportionately the price regularly charged for such
drink during the same calendar week;

(h) encourage or permit, on the licensed premises, any game or contest
which involves drinking or the awarding of drinks as prizes.

The difference is that Mast’ will likely keep a regular price list for the bottle, only provide one drink from the bottle at a time, and possibly keep the price per drink in proportion to the single drink prices. Because this service differs slightly from bottle service it may cause change to how the licensing board views these services and how restaurants offer them.

The novelty of the service, and potentially the popularity of it, will determine whether it catches on at other Boston restaurants.

Solutions to Boston’s Permitting Problems

On June 18, 2014 At-Large City Councilor Michelle Wu submitted an interim report that addresses various permitting and zoning obstacles facing Boston businesses. The report comes from the Special Committee on Small Business, Entrepreneurship, and Innovation which Councilor Wu chairs.

The proposals address the barrier to entry for new businesses and streamlines a process which has in some cases become bloated, over-regulated, and antiquated. After Mayor Walsh or other members of the City Council comment on the report, some or all of the proposals may be considered by the full City Council for a vote.

It can be difficult for a new business to plan openings, construction, and hiring when timelines for permits and licenses are a mystery. Even worse this timeline can be a surprise to new entrepreneurs who have never navigated the permitting procedures of ISD and City Hall.

Some of the highlights of Councilor Wu’s report include:

1.            Publicizing estimated timelines for obtaining various permits and licenses based on data.

2.            Institute a case manager system

3.            Implement technology to shorten unnecessary delays by several weeks.

This week, the Boston IT department announced a hack-a-thon to solicit ideas from local developers. The hack-a-thon will tackle some of the problems discussed in the interim report including:

  • Which Permits Do I Need?: A single project may require multiple permits. Applicants need a clear, intuitive, and enjoyable guide that will help applicants identify the permits they need to start working!
  • What’s my Address of Record?: Every project needs to be linked to an address in the City’s master database.  In the current system, finding your address is tougher than it should be. Our new online system needs a clear way to search addresses and suggest alternatives, getting it right the first time.
  • Can I Apply for that Permit Online?: With September 1st weeks away, developers will try their hand at a challenge to provide a very practical solution using the City’s new API – creating a simple online and/or mobile application for Street Occupancy permits required to block space for a moving truck.
  • Where am I in the Approval Process?: Complex building projects can take months to review and permit, even if the process works correctly. Residents needs a clear way to track all permits associated with their project, which helps them understand how close they are to getting underway.
From : http://hubhacks.challengepost.com/

 

Boston liquor licenses

May 27’s Boston Sunday Globe contained two thought-provoking Opinion pieces by Globe deputy editor Dante Ramos:  “Boston bar buzz-kill” and “For the price of a Boston liquor license…oh, never mind“.  Ramos discusses the reasons Boston has less bars and restaurants that serve alcohol than you might think, or many might want.  Ramos also explains why restaurant liquor licenses are so expensive in Boston, and how that skews the types of restaurants that can survive and flourish.  Some possible “solutions” that Ramos throws out that could deserve support include a new class of licenses for smaller bars, or new non-transferable licenses whose fees could be dedicated to support late-night bus or T service.  Well worth taking a closer look….