Maryland Liquor License: 25 Local Boards, Classes and How to Apply

Maryland's alcohol licensing system is decentralized. Rather than a single state agency approving all liquor licenses, Maryland delegates licensing authority to 25 local boards spread across the state. This means your county or city board, not a state office, issues your liquor license. Understanding which board has jurisdiction over your location and what that board requires is your first step.

The 25 Local Liquor License Boards

Maryland has 25 separate liquor licensing authorities:

• 23 county boards (representing Maryland's 23 counties)
• Baltimore City Liquor License Board (Baltimore City is independent, not part of Baltimore County)
• Annapolis Board of License Commissioners (the City of Annapolis operates independently)

Each board sets its own policies, processes, and fees within the framework of Maryland law. This means requirements vary depending on where your business operates. Montgomery County, for example, runs an alcohol control system through its Alcohol Beverage Services division, rather than using a traditional licensing board. Baltimore City's board operates as an agency of the State of Maryland.

Before you file an application, confirm which board has jurisdiction over your planned location. If you are near a county line or in a city, verify you are applying to the correct jurisdiction.

Maryland Liquor License Classes

Maryland law defines several license classes. The most common for retail sale are:

Class B: Beer, Wine, and Liquor

A Class B license allows retail sale of beer, wine, and spirits. Class B licenses are generally on-premises licenses (bars, restaurants, hotels and similar venues). Off-premises package store sales fall under a different license class, so confirm the class you need with your board. The number of Class B licenses available in each jurisdiction is limited. Prince George's County, for example, raised its cap on Class B licenses from 185 to 215 licenses in 2022 (through House Bill 1050), and the annual Class B fee in that county was listed at $2,305 in the 2022 fiscal note. Verify the current cap and fee for your specific county or city, as they vary and may have changed.

Beer and Wine Licenses

A Beer and Wine license limits retail sales to beer and wine only, excluding spirits. These licenses are often easier to obtain in some jurisdictions because they are less regulated than full Class B licenses, and some areas have higher caps or availability.

Other Classes

Maryland also issues licenses for off-premises sale (package stores), manufacturer licenses (breweries, wineries, distilleries), wholesaler licenses, and special licenses for events. The specific classes available to you depend on your business model and your jurisdiction's rules.

The Role of the Maryland Alcohol, Tobacco, and Cannabis Commission (ATCC)

The State of Maryland's Alcohol, Tobacco, and Cannabis Commission (ATCC) regulates liquor at the state level. The ATCC enforces state liquor laws, sets some fees within statutory limits (particularly for manufacturer licenses), oversees compliance, and administers the directory of Maryland's 25 local alcohol licensing jurisdictions. However, the ATCC does not issue retail licenses; that authority belongs to the local boards.

You must comply with both state law (enforced by the ATCC) and local regulations (enforced by your county or city board). If you plan to manufacture alcohol, you will need both a state manufacturer license from the ATCC and any required local approval.

How to Apply for a Maryland Liquor License

Step 1: Identify Your Licensing Board

Determine which of Maryland's 25 boards has jurisdiction. Use the ATCC's directory of local alcohol licensing jurisdictions as your starting point. If you are in Baltimore City or Annapolis, contact the Baltimore City Liquor License Board or the Annapolis Board of License Commissioners respectively. For all other locations, contact your county board.

Step 2: Obtain and Complete the Application

Contact your local board and request the liquor license application. Each board issues its own forms and may have slightly different requirements. Download the application or request it by mail. Most boards now offer online application portals or electronic filing options, though you may still need to provide physical documents (like a business license, floor plan, or lease agreement) during the process.

Step 3: Prepare Required Documentation

Typical requirements include:

• A completed liquor license application form
• Proof of business registration or incorporation (Articles of Organization, Articles of Incorporation, or a trade name registration)
• A floor plan showing the size and layout of your premises
• Proof of location (lease, deed, or purchase agreement)
• Ownership documentation (articles of incorporation, operating agreements, or proof of individual ownership)
• Personal and financial documentation for all owners and managers
• Local approval (some jurisdictions require zoning approval or a local permit before the board will issue a liquor license)
• A list of planned hours of operation
• Any other local approvals your board lists (a trader's license is not required for alcohol sales, but may apply to other goods you sell)

Note: Maryland law (Business Regulation 17-1802) explicitly excludes the sale of alcoholic beverages from the trader's license subtitle. This means your liquor license is separate from the trader's license, and a trader's license is not needed for the alcohol itself. If you also sell other goods, such as food or merchandise, ask the Clerk of the Circuit Court whether a trader's license applies to those sales.

Step 4: Submit and Pay Fees

Submit your completed application and required documents to your board. Pay the application fee and any processing fees. Fees vary widely by jurisdiction. Each board sets its own fee schedule. Ask your board for a complete fee schedule before submitting.

Step 5: Attend a Public Hearing or Board Meeting

Many boards hold public hearings for contested or new applications. Neighbors and community members may testify for or against your application. Your board will notify you of the hearing date. Attend, present your business plan, and respond to questions. In some jurisdictions, the board may approve your application without a hearing if there are no objections.

Step 6: Receive Your License

If approved, you will receive your liquor license. The license is valid for a set period (set by your board) and must be displayed at your location. You will need to renew your license on a schedule determined by your board.

Special Considerations by Jurisdiction

Baltimore City

Baltimore City's Liquor License Board has described a moratorium on new licenses since 1968, so new retail licenses can be difficult to obtain. If you are planning a liquor-serving business in Baltimore City, verify the current license categories available to you. The Baltimore City Liquor License Board can confirm whether a license in your category is available.

Montgomery County

Montgomery County operates its alcohol licensing system through the Alcohol Beverage Services division, rather than a separate licensing board. Applications and regulations follow a similar process but are managed by this county agency.

Prince George's County

Prince George's County raised its cap on Class B licenses from 185 to 215 in 2022. The annual Class B fee was listed at $2,305 in 2022. Verify the current fee with the Prince George's Board of License Commissioners, as it may have changed.

Taxes on Alcohol Sales

In addition to licensing fees, Maryland imposes a 9% sales tax on alcohol sales (Tax-General 11-104). This is a separate rate for alcohol rather than an add-on to the general 6% rate, and Maryland has no local sales taxes. Factor this tax into your business planning and pricing.

Timeline and Processing

Processing times vary by board. Timelines are set by each board and may be longer if a hearing is required or if there are objections. Ask your board for an estimated timeline when you submit your application. In the meantime, do not purchase inventory or sign a long-term lease, as approval is not guaranteed.

Important Disclaimers

This guide is informational only and is not legal or tax advice. Liquor licensing requirements are complex and vary significantly by jurisdiction. Before applying, consult with a qualified business attorney familiar with Maryland liquor law. Your attorney can review your specific situation, advise on local requirements, and represent you at a public hearing if needed. You should also consult a CPA or tax professional to understand your tax obligations as a liquor retailer.

Next Steps

Start by contacting the local liquor board that has jurisdiction over your location. Request an application and fee schedule. Ask about current license availability and any moratoriums or caps. Gather all required documents and consult an attorney before filing. The application process takes time, but understanding Maryland's 25-board system and your specific jurisdiction's requirements will help you navigate it successfully.

For state-level information, contact the Maryland Alcohol, Tobacco, and Cannabis Commission (ATCC) or your local board directly. Each of Maryland's 25 local boards maintains its own policies and contact information, so personalized guidance from your county or city is essential.