Bill to ease liquor‑license transfers when sellers owe taxes wins industry support

Senator Wiley Galt introduced Senate Bill 241 to change how liquor licenses transfer when sellers owe unpaid taxes. Galt said when he bought a bar he encountered long delays because unpaid taxes prevented license transfer and that the bill would let the department move the license to the buyer and collect tax proceeds from the sale.

John Iverson of the Montana Tavern Association, Shauna Helfert of the Gaming Industry Association and Matt Leo of the Montana Brewers Association testified in support, saying the bill helps small businesses complete sales, removes uncertainty for buyers and prevents administrative holdups that keep hospitality venues closed.

Becky Schlauch, alcoholic beverage control administrator at the Department of Revenue, told the committee taxes are confidential and the department cannot disclose sellers’ tax status to buyers; she said the department is already operating under the proposed process and the bill would codify current practice. Schlauch also described temporary operating authority for buyers and explained nonuse rules: a licensee must notify the department after 90 days of nonoperation and may have up to one year of nonuse unless extenuating circumstances apply.

Committee members asked whether negotiations could resolve tax issues and whether licenses in unincorporated communities are treated differently; department staff explained that in some cases sellers have not even filed taxes so liabilities are unknown, that county licenses may be available in unincorporated areas, and that temporary operating authority lets buyers operate during transfers.

Sponsor Wiley Galt closed by saying the bill provides certainty in real transactions and urged the committee to consider the measure. No opponents testified in the room or online during the hearing.