Greenbelt New Deal Café Discovers Vendor Owes Thousands in State Taxes

The New Deal Café’s board discovered that the venue was “not in good standing” with the State of Maryland after it could not renew its entertainment permit in early October, and in the process determined its contracted vendor had “had not paid any of the required monthly food and alcohol sales taxes to the State of Maryland since he began operating at the NDC.” The lapse contributed to the café’s entertainment permit expiring in November 2025 and forced the music program to be suspended until the application could be renewed in December.

The vendor, Kenny Hilliard, “has now been the Café’s food and beverage vendor for 15 months,” and board review of the café’s books turned up a wider pattern of trouble. The investigation “uncovered a pattern of financial issues including failure to pay utilities on time including gas, water and electricity,” and found rent payments that flow from Hilliard to the NDC and then to the landlord “at times that had fallen into arrears,” said NDC Board President John Campanile. The board identified “a new debt of over $13,500” it said “is unlikely to be something they can absorb.”

In early January the board presented Hilliard with a notice to pay “the bill in full.” A January 24 board email outlined “critical and challenging circumstances related to our operations and sustainability,” and the message raised the prospect of “possible legal action” against the current vendor. Campanile said he hopes the Café and Hilliard can reach a solution, suggesting the unpaid-taxes situation “could have been a misunderstanding,” and added, “Overall we appreciate Kenny’s tenure.” He also noted that Hilliard “owns other businesses and ought to be aware of the processes.”

For Greenbelt residents, the dispute carries direct consequences. The New Deal Café is one of the county’s long-running nonprofit music venues, and its board acknowledged the organization “has had longstanding and ongoing cash-flow challenges for most of its existence.” The November permit lapse and the temporary suspension of the music program interrupted community concerts and open-mic nights that draw local audiences and musicians. Patrons have “been appreciating the growing menu and new options and the atmosphere” under Hilliard, making the vendor dispute not only a financial issue but a community concern over programming continuity and local jobs.

Next steps hinge on whether Hilliard responds to the early-January demand and whether the board moves forward with legal action referenced in the January 24 communication. The board says it will pursue resolution while protecting the café’s operations; for patrons and performers who rely on the New Deal Café for live music, the outcome will determine whether the venue can stabilize finances and keep community programming on schedule.