The FY2027 New York State Budget delivered several important victories for New York City’s hospitality industry. Thanks to the support of our members, advocates, and our team, the NYC Hospitality Alliance helped secure key wins that reduce costs, protect small businesses, support workers, and improve operating conditions for restaurants, bars, and nightclubs.
Here are some of the results we achieved in and alongside the state budget:
What We Delivered:
- Eliminated certain wholesaler fees
- Removed unnecessary dancing restrictions
- Extended temporary alcohol permits through 2027
- Protected independent businesses from unfair competition
- Supported tax relief for tipped workers
Eliminated certain wholesaler fees
The Alliance worked with Governor Hochul and the Legislature to include language prohibiting wholesalers from charging attorney fees, collection costs, and breakage fees to licensed retailers. The budget also authorizes the State Liquor Authority to regulate split fees and other fees not prohibited by law. We look forward to working with the SLA to ensure that any regulations issued under this new power are fair for bars and restaurants and keep our industry affordable for our customers.
Removed unnecessary dancing restrictions
The State Liquor Authority approved a new advisory eliminating the requirement that on-premises liquor license applicants disclose whether patron dancing will be permitted at their establishment. This helps end unnecessary restrictions on social dancing in New York and builds on previous Alliance-backed victories, including the repeal of the Cabaret Law and zoning reforms that removed most local restrictions on dancing.
Extended temporary alcohol permits through 2027
The temporary alcohol retail permit program that the Alliance helped secure several years ago has been extended through 2027. The program allows eligible businesses to begin serving alcohol sooner while awaiting final license approval, helping operators open faster and generate revenue more quickly.
Protected independent businesses from unfair competition
The enacted budget does not include a proposal that would have allowed global alcohol brands to open vertically integrated, company-owned drinking establishments that could compete directly with independent bars and restaurants. The Alliance strongly opposed the measure because it would have created unfair competition for local businesses while offering little meaningful economic benefit.
Supported tax relief for tipped workers
The enacted budget includes the elimination of state income tax on up to $25,000 of tipped income in tax year 2026 for New York’s servers, bartenders, and other tipped workers, consistent with federal law. This measure helps hospitality employees keep more of their earnings and supports workforce recruitment and retention.
A Strong Voice for Hospitality
These victories demonstrate what can be accomplished when New York City’s hospitality industry has a strong voice in Albany. Thank you to our members, supporters, and advocates for helping make these achievements possible. Together, we will continue fighting for policies that strengthen independent restaurants, bars, and nightclubs and help our industry.
Stay tuned for further updates!
