Please ensure Javascript is enabled for purposes of website accessibility
Fresno, Other Counties Face Restaurant Wrath Over Booze, Health Fees in Pandemic
gvw_ap_news
By Associated Press
Published 4 years ago on
October 26, 2020

Share

California’s financially battered restaurants filed government claims Monday to recover more than $100 million in fees for liquor and health permits and tourism charges that they say were assessed even though their businesses were shuttered or only partially operating under long-running coronavirus orders.

The owners contend they have been being unjustly punished for following the law and are being charged for permits they can’t use.

“The irony is, they did what they were told and the very entity that told them to close is keeping these fees,” said attorney Brian Kabateck, who is representing restaurants that filed claims against the state and against Los Angeles, Orange, Sacramento, San Diego and Monterey counties,.

Additional claims will be filed in coming days for restaurants in San Francisco and in Fresno and Placer counties. The move is supported by the California Restaurant Association.

“Somebody has to tell them this is wrong and to return the money,” Kabateck said.

Few industries in the state have been hit as hard during the pandemic as restaurants, which were ordered closed, reopened, closed for a second time and then allowed to welcome customers again, though with restrictions. Thousands of restaurants have closed permanently during the pandemic.

Owners say one thing has remained constant amid the turmoil. State and county governments have continued to charge fees for liquor licenses, health permits and tourism assessments — even though the restaurants were closed down by government orders or permitted to operate with limited capacity and dining.

Kabateck estimated the fees could exceed $100 million statewide.

The Restaurant Association Previously Urged Gov. Newsom to Hold a Special Session

A government claim, filed for individual restaurants and on behalf of other businesses in the sector, is a required initial step before filing a class-action lawsuit against government agencies in California. Officials have 45 days to respond.

Walter Schild, who owns the 33 Taps Hollywood gastropub in Los Angeles, said he pays about $7,000 annually in government fees beside property taxes — ranging from his liquor license to a levy on his valet service.

He’s said he’s been unable to get the fees reduced or delayed and is now being charged with late fees of up to 50% for failing to pay, even though the restaurant has been closed for all but about a month since mid-March.

With the restaurant closed, Schild has no income. He was recently forced to shutter another restaurant southeast of Los Angeles in Orange County because of the financial strain and laid off 30 employees.

The Hollywood restaurant lost money when he attempted takeout and delivery, and the lack of tourists gutted what would be the eatery’s usual customer base.

“We have been pleading with our legislators for fee relief,” Schild said. “It’s been tough.”

The restaurant association previously urged Democratic Gov. Gavin Newsom to hold a special session of the Legislature to work on an aid package for their businesses.

Under state rules, counties with the highest infection rates are limited to outdoor dining only, along with takeout and delivery.

If those rates improve, restaurants can operate with 25% capacity indoors or 100 patrons, whichever is fewer. Even under the least restrictive rules, indoor capacity can only reach 50%.

Industry officials have said the rules will doom many more restaurants. California has nearly 60,000 restaurants that employ approximately 1.5 million workers.

“Even when the restrictions are lifted, the devastating impact on the restaurant industry will extend for years,” Jot Condie, who heads the restaurant association, said in a statement. “Easing fees would help enable establishments to stay open and keep vulnerable workers employed.”

DON'T MISS

See How Valley Lawmakers Voted on a Bill That Chills Free Speech

DON'T MISS

Meet Goldie Hawn: The Adorable Yorkie with a Heart of Gold

DON'T MISS

Police Investigating Possible Vandalism at Jewish Temple, Catholic Church

DON'T MISS

Valley PBS’ Top 2 Executives Departing. Were Their Resignations a Surprise?

DON'T MISS

Unfiltered Clip: Insights from Dr. Trita Parsi on Navigating the Israel-Palestine Conflict

DON'T MISS

Hamas Is Sending a Delegation to Egypt for Further Cease-Fire Talks in the Latest Sign of Progress

DON'T MISS

President Joe Biden Calls Japan and India ‘Xenophobic’ Nations That Do Not Welcome Immigrants

DON'T MISS

DEA’s Marijuana Reclassification Could Revive California’s Struggling Pot Industry

DON'T MISS

How to Reclaim the Israel-Palestine Debate From the Radicals on Both Sides

DON'T MISS

US Airstrike Targeting Al-Qaida Leader in Syria Killed a Farmer, American Military Says

UP NEXT

US Airstrike Targeting Al-Qaida Leader in Syria Killed a Farmer, American Military Says

UP NEXT

Californians Are Protecting Themselves from Wildfire. Why Is There an Insurance Crisis?

UP NEXT

Biden Says ‘Order Must Prevail’ on Campuses, but He Won’t Send National Guard

UP NEXT

Police Dismantle UCLA Tent Camp, Take Pro-Palestinian Protesters Into Custody

UP NEXT

Fresno State’s Randa Jarrar Dragged Out of Event Featuring Big Bang Theory’s Mayim Bialik

UP NEXT

Biden’s Historic Marijuana Shift Is His Latest Election Year Move for Young Voters

UP NEXT

What Marijuana Reclassification Means for the United States

UP NEXT

Rep. Marjorie Taylor Greene Vows to Force a Vote on Ousting House Speaker Mike Johnson

UP NEXT

Protesters Clash at UCLA After Police Arrest 300 Pro-Palestinian Demonstrators in New York City

UP NEXT

Dems: We Will Save GOP Speaker Johnson’s Job if Republicans Try to Oust Him

Valley PBS’ Top 2 Executives Departing. Were Their Resignations a Surprise?

Entertainment /

15 hours ago

Unfiltered Clip: Insights from Dr. Trita Parsi on Navigating the Israel-Palestine Conflict

Video /

15 hours ago

Hamas Is Sending a Delegation to Egypt for Further Cease-Fire Talks in the Latest Sign of Progress

16 hours ago

President Joe Biden Calls Japan and India ‘Xenophobic’ Nations That Do Not Welcome Immigrants

16 hours ago

DEA’s Marijuana Reclassification Could Revive California’s Struggling Pot Industry

16 hours ago

How to Reclaim the Israel-Palestine Debate From the Radicals on Both Sides

17 hours ago

US Airstrike Targeting Al-Qaida Leader in Syria Killed a Farmer, American Military Says

17 hours ago

Today’s Campus Protests Aren’t Nearly as Big or Violent as Those of the Vietnam Era

17 hours ago

Mike Yaz Homers at Fenway In Giants Win After Visit From His Hall of Fame Grandpa

17 hours ago

Lagging Revenue Drives California Budget Deficit as Deadline Nears

18 hours ago

See How Valley Lawmakers Voted on a Bill That Chills Free Speech

The House of Representatives passed a bill with bipartisan support on Wednesday that would establish a broader definition of antisemitism fo...

1 hour ago

1 hour ago

See How Valley Lawmakers Voted on a Bill That Chills Free Speech

2 hours ago

Meet Goldie Hawn: The Adorable Yorkie with a Heart of Gold

12 hours ago

Police Investigating Possible Vandalism at Jewish Temple, Catholic Church

Entertainment /
15 hours ago

Valley PBS’ Top 2 Executives Departing. Were Their Resignations a Surprise?

Video /
15 hours ago

Unfiltered Clip: Insights from Dr. Trita Parsi on Navigating the Israel-Palestine Conflict

16 hours ago

Hamas Is Sending a Delegation to Egypt for Further Cease-Fire Talks in the Latest Sign of Progress

16 hours ago

President Joe Biden Calls Japan and India ‘Xenophobic’ Nations That Do Not Welcome Immigrants

16 hours ago

DEA’s Marijuana Reclassification Could Revive California’s Struggling Pot Industry

MENU

CONNECT WITH US

Search

Send this to a friend