Spotlight: Quota Lottery Fees
Congratulations! One of your entries won you the right to apply for an quota liquor licenses in an extremely valuable county. That's great news, but there are some upfront costs to winning a “free” liquor license. I hope you have your checkbook handy.
A quota lottery winner (or "selected entrant") must file an application for issuance of the license within 45 days of the date of the notice of selection letter from the state or waive the right to apply. The state will require $11,432.50 or more in fees should your drawing be selected. If you are an investor hoping to sell your license for a profit, an additional $27,300 transfer fee is imposed as a penalty.
Even though a successful sales transaction would recoup these funds, every lottery entrant should be aware of the requirements. Frankly, the fees are simply the cost of doing business. For investor entrants, the funds would come out of the sales price when the transaction is closed.
Due upon entry: $100
$100 entry fee (per 561.19(2)(e))
Due upon issuance: $11,432.50 or more
$10,750.00 Hughes Act fee (per F.S. 561.19(5))
$682.50 annual licensing fee (half of annual fee per F.S. 561.32(3)(a))
Please note that this fee may double, depending on what month the license is licensed to you.
We generally advise investors who will not be operating the license to designate the license as package sales only. This will save $455.00 per license year ($1365.00 versus $1820.00).
Due upon sale/transfer: $27,300.00
$27,300.00 transfer fee (per F.S. 561.32(4)(b))
