License renewal fee notices arrive as small businesses struggle through COVID-19 closures

As the state pledges additional help for small businesses struggling to survive the pandemic, owners of a Seattle bar and restaurant say they feel one area is being overlooked: Liquor and business license fees that are expected to be paid despite some businesses, like theirs, being forced to close for months this year due to COVID-19 restrictions.

“We can’t afford to pay $2000+ for a license we can’t use,” said Brandi Krauzer, who owns The Toledo with her husband, Eric Jensen.

Jensen said their Dexter Avenue bar was almost breaking even when limited indoor dining was allowed but said their patio space is too small for it to make sense financially to stay open during the state’s latest restrictions that banned indoor dine-in service. They closed their doors again last month after a months-long closure earlier in the year when the state first shutdown.

“If I was to be prorated for the time we’ve been ordered to close this year, it would be almost half or 3/4ths of a month’s rent so for a downtime, that would be very significant in saving money,” said Jensen, who told KIRO 7 the state was not receptive to their inquiries about prorated renewal fees. “A very good way for the state to help out business just by prorating stuff like that. If you can’t use it, you’re ordered to close, you’re not really getting any use out of your money.”

The Washington State Liquor and Cannabis Board told KIRO 7 it does not have the authority to waive license fees but said it has taken steps to help struggling restaurants and other businesses like waiving late fees.

State commerce officials said they expect to open the application portal Wednesday for small businesses to apply for a new round of $50 million in grant funding that Governor Jay Inslee announced last month. However, a spokesperson said business license fees cannot be paid with this grant money because it comes from CARES Act funding and using those funds for license fees isn’t allowed by the federal government.

“By helping cover eligible costs such as rent or utilities, these grants will help with their overall operating expenses so they’re in a better position to cover other costs such as taxes and licenses,” said Washington State Department of Commerce spokesperson Penny Thomas.

Thomas said restaurants and bars are among the businesses that will be given priority for the new grants.

“They’re saying help is on the way and I do believe it is,” said Jensen. “But I think there’s better, common sense things to do.”

Cox Media Group