How to Get a Liquor License in Arizona

In good times, people drink to celebrate. In bad times, people drink even more. There is never a bad time to get into the alcohol industry in Arizona. Selling alcoholic beverages is an incredibly profitable endeavor for most bar service and wholesale establishments. Beer, wine, and liquor are relatively shelf stable, making it easy to invest in inventory or a full bar and secure a return on that investment. Adding beer, wine, or liquor sales to an existing full restaurant menu tends to improve the overall experience and increase the ticket size.  If you’ve chosen this path, you’ll know that you need to secure a liquor license. Alcohol is a tightly regulated product, meaning you need certification and licensing before you can sell or serve a drink. Let’s talk about how to get a liquor license in Arizona.

Types of Arizona Liquor Licenses

There are over 20 types of Arizona liquor licenses. The one that applies best to your situation will depend on a few factors. These include the type of business you own (retail, wholesale, hospitality, events, etc.), where the alcohol is made, if you’re producing it (you’ll need to specify in-state production vs. out-of-state production), the type of alcohol you’d like to sell (beer, wine, and/or liquor), and how you’d like to sell it (in person or online for example). Each application type comes with a kit that you’ll need to complete alongside your application.

Let’s talk about some of the different application kits you’ll experience as you apply for your liquor license in Arizona.

As we touched on, there are over 20 types of Arizona liquor licenses, and they vary depending on a few factors. The right Arizona liquor license for your business may be different from someone else’s.

Here are some of the most common ones:

Wholesaler application

This type of license is for you if you are a wholesaler who needs to warehouse, sell, and distribute beer, wine, or hard liquor to licensed retailers based in Arizona.

Bar application

If you are a retail bar (in other words, selling alcohol to the general public), the bar liquor license may be right for you. This license is transferable from person to person or location to location. There is a quota for the license, and it is only available through the Arizona Liquor License Lottery or by purchasing the license on the open market.^[1]AZ Liquor.gov. “Arizona Liquor License Lottery.” Accessed September 25, 2024.  

With this license, you can sell and serve any kind of liquor in an individual portion. These drinks must be consumed on the premises and in the original container they were given. This license can include other privileges as additions, such as“off sale“ (or “to-go”) privileges, allowing the licensee to deliver liquor off the premises for a retail sale.

Beer and wine bar application

This license is also only available through the Liquor License Lottery, as there is a set quota for how many licenses the state can issue. You can also purchase one on the open market. It is also transferable from person to person or location to location as long as it stays within the same county.

This is for bars that wish to serve only beer and wine in individual portions for on-site consumption. There are also to-go privileges in connection with this license, but there are restrictions on the total amount of off-site sales each year.

Liquor store application

The state issues this license to retailers who sell any kind of liquor in its original sealed package designed for off-premises consumption. Like many others we’ve discussed thus far, the Liquor License Lottery issues this license to meet a quota of licenses available. Like some of the aforementioned licenses, it is also available for purchase on the open market and is transferable.

Restaurant application

If you derive at least 40% of your gross revenue from the sale of food, you should be eligible for the restaurant application kit. This license is not transferable but allows the holder to sell and serve all types of beer, wine, and liquor.

Hotel application

This license is incredibly similar to the restaurant license, meaning if there’s a restaurant on the premises, it must derive at least 40% of its revenue from the sale of food. It is also non-transferable.

The main difference is that a hotel can use this license to sell liquor and sealed individual-sized single-drink containers to registered guests through a minibar in their rooms. In Arizona, you must limit access to the minibar to guests 21 years of age or older between 6 AM and 2 AM.

Other licenses not mentioned

While this list covered a majority of applicants, other situations you may fit into include breweries, wineries, special events, festivals and fairs, direct-to-consumer wine shipments, distillers, tasting rooms, registered delivery contractors, and more. To find out more information about those licenses, check out the official Arizona Department of Liquor Licenses website.

Liquor License Requirements for Arizona

The exact licensing requirements for a liquor license in Arizona will vary depending on the license type you choose. Generally, however, you will need to provide the following:

The Department of Liquor makes it very clear on its website that it will not accept or process incomplete applications. So not only will you need the application (which needs to be completed in black ink), but here’s what else you’ll need to accompany it:

Application fee

If you buy directly from the Arizona Department of Liquor Licenses and Control Office, the application may cost between a few hundred and a few thousand dollars (we’ll give you more information on this later in the article), so make sure you have the funds available.

The questionnaire

For anything on the questionnaire that you answered, “yes” to on the second page, you need to attach a signed statement. Please note that the ADOL website clarifies that once the application has been accepted, you may not make significant changes to the questionnaire responses so take time to handle it with care the first time.

Arizona statement of citizenship or alien status for state public benefits

This establishes your eligibility to have a business in the U.S.

A state-issued ID or passport

To confirm your identity.

Conditional use permit

A copy of a conditional use permit for the location you’re applying with or proof that you have an outstanding application for such a permit. You can obtain this from the city or county planning department.

Proof of funds

Though not always required, you may need to show bank statements, financial statements, real estate statements, any loan documents, etc., so have them ready.

Fingerprint card

Each significant person disclosed within the questionnaire needs to complete a fingerprint card. The fingerprint card needs to remain sealed once completed (at the testing site). You may not tamper with that seal and must turn it in as is. The fee for the service is $22.00.

Proof of training

A valid certificate of completion of Title 4 Arizona Liquor Law Training issued within the past three years. Any agent, owner, or manager actively involved in the day-to-day operations of this business needs to submit a certificate. You have up to 60 days after submitting your application to submit it.

The remaining requirements and permits will vary and there are likely several additional documents you will need to provide depending on the type of business entity you’re applying under. You can apply as a solo entrepreneur/owner, an LLC, a partnership, a limited partnership, a trust, or a corporation.

In addition to/in pursuit of the license, your business will need to:

• Notify the public: Depending on your location, you may need to place a publicly visible sign at the business location indicating your intent to establish a liquor license. You may also need to take out an ad in the local paper announcing your intent. Other requirements by district may vary.

• Business license: A business license is not required at the state level, but it likely is at the city level. Check with your city and county for the most up-to-date information. 

• Proper zoning: Your local planning and zoning division can help you with zoning-related matters as you pick your business location. You can contact them before applying to ensure that your chosen location gets zoned properly.

• Sales tax license (TPT – Transaction Privilege Tax): To sell alcohol, you must have a valid TPT license. You can apply for your license through the Arizona Department of Revenue (ADOR).^[2]AZ DOR. “TPT License Arizona.” Accessed September 25, 2024.

• Health permit: Finally, you likely need to furnish a completed city or county-level health permit. The health department requirement applies most directly to food establishments like restaurants or bars, but may also apply to other sectors as well.

Understanding Liquor Laws in Arizona

Each state sets its own basic liquor laws. 

• Drinking age: Like every other state in the U.S., Arizona’s minimum legal drinking age is 21.

• Serving age: An employee eligible to serve alcohol needs to be 18 years of age when selling on site, and 16 years of age in certain exceptions.

• Serving hours: Alcohol may not be sold between 2 AM and 6 AM in the state of Arizona.

• Restaurant hours: A restaurant must leave their kitchen open until 10 PM for complete food service if they have a liquor license.

• Identification: Customers may be on the premises without proper identification. However, if the establishment requests a form of ID, the customer must present one before they can be served. Legal identification includes:

• An unexpired driver’s license issued in Arizona.
• Unexpired driver’s license issued by any other state, D.C., territory of the United States, or Canada, as long as it includes a picture of the person and their date of birth.
• A non-operating license issued to a person over 21.
• Valid and unexpired passport.
• A valid and unexpired resident alien card that contains a photograph and the person’s date of birth,
• Armed Forces ID card with a valid photo and birthdate.

To learn more about additional liquor laws in Arizona, check out the official resources available online.

How Much Does a Liquor License Cost in Arizona?

A liquor license costs anywhere from a few hundred to a few thousand dollars in the state of Arizona if a permit is obtained directly from the state. You can refer to this official list of state fees by license type. Keep in mind that additional fees may be charged by the city or county where you plan to apply.

If you purchase a liquor license on the open market, the price you pay may vary. Contact an agent or broker for more information.

How to Apply for a Liquor License in Arizona

To start your application, head to your local Arizona Department of Liquor Licenses and Control Office with your completed application and supplemental materials. Don’t forget to bring your application fee. Check out this application checklist to make sure you’re all set.

How to Renew Your Arizona Liquor License

After a year, you’ll pay a renewal fee to keep your license active. The exact fee amount and deadline vary depending on the city/county you live in and the type of license you received. Renewal information should be provided before the deadline.

Getting a Beer and Wine License in Arizona: Closing Thoughts

There are dozens of available beer, wine, and liquor licenses in Arizona. While it’s a very achievable process, you’ll need to ensure you dotted your i’s and crossed your t’s to get approved. There is a review and approval process for new license holders that may delay approval (for example, if the public or community challenges the application). Coming in prepared is your best defense.

Your next step after getting your liquor license is to find a credit card processor to allow you to accept payments. Working with a processor who specializes in bars and restaurants enables you to accept payments from anywhere with secure processing, the latest POS systems for your business, and a dedicated merchant account. Get in contact with us today to see what we can do for you.

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