Idaho Resort Cities Partner with Idaho State Police to Implement New Liquor License Legislation

The City of Victor, in partnership with our Idaho Resort Cities Partner and the Idaho State Police Implement New Liquor License Legislation  

The Victor City Council adopted a Resort Cities Liquor Licenses ordinance on June 24, 2024. The license program was established by law during the last state legislative session to give Idaho’s resort cities the option to issue up to three additional liquor licenses to meet seasonal tourism demands. In the time since, Idaho’s resort cities have worked with the Idaho State Police Alcohol Beverage Control Division (ABC) to issue a new category of liquor license called the Resort Restaurant City Liquor License. The city council’s adoption of the ordinance last Thursday codified the City’s participation in the license program 

Idaho’s standard liquor license is based on permanent population of a city, but Idaho’s resort cities experience significant temporary population increases due to seasonal outdoor recreation. Local restaurants see high demand for liquor and cocktails as part of the local tourism, but they have not been able to meet that demand due to Idaho’s limitations on liquor licenses. Resort city proponents told legislators that the ability for a fine dining restaurant to serve a cocktail with dinner makes that restaurant fuller service in their community.   

A city must qualify as a resort city under the new law in order for the licenses to be available. Criteria include having a population of less than 10,000 and deriving the major portion of its economic well-being from businesses catering to recreational needs and meeting needs of people traveling to that destination city for an extended period of time. Additionally, the city must be further than 15 miles from a city with a population of 50,000 or more. The city must also certify that it experiences high-season sewage flows that exceed low-season flows by 20% or more. If a city meets all of the requirements, it will have three Resort City Restaurant Liquor Licenses available. There is no requirement that the City and ABC grant the licenses. It is a local decision by the mayor and city council whether to issue the licenses. 

The new licenses are exclusively for restaurants with full kitchens that comply with Idaho code.  To qualify for a license, the restaurant must show that the primary source of revenue is derived from food services and not from the sale of liquor.  Renewals will be conditioned upon showing that no less than 60% of the gross sales from the preceding 12 months were derived from food services.  Prospective license holders must also agree to dispense liquor and prepare drinks only in areas approved by the city.  Liquor sales must stop when food sales and service ends, and the city can impose additional date and time restrictions.   

The process for the awarding of the liquor licenses will be directed by ABC.  Staff at ABC have developed temporary rules for implementation. The rules will be before the legislature next January for final approval.  ABC staff has requested cities adopt a resolution indicating their interest in working with ABC to implement the legislation. The resolution should include the city’s acknowledgement that it complies with the statutory requirements to be a resort city. 

ABC will first contact individuals on the standard liquor license waiting list to see if they are interested in a Resort City Restaurant Liquor License and if they can meet the requirements. If Resort City Liquor Licenses remain after contacting the waiting list, the remaining licenses will be available on a first come, first serve basis. All applicants will still need to meet ABC’s criteria for a liquor license, plus the requirements for a Resort City Restaurant Liquor License. The final approval will come from the City, signed by the Mayor. 

Resort city members acknowledge that this is a special privilege that has been granted by the legislature and are aware that key legislators will be watching the implementation closely to make sure their concerns are met.   

For questions and inquiries, please contact the City Clerk at michelles@victoridaho.gov or Alcohol Beverage Control Bureau Idaho State Police, www.isp.idaho.gov/abc