4. Ordinance 1282 - Beer/Wine License Fee - 2nd ReadingAgenda -March 2, 1998
AGENDA ITEM 4 -ORDINANCE 1282-BEER/WINE LICENSE FEE-2ND READING
BACKGROUND/CONSIDERATION: This is the 2n° reading of the ordinance pertaining to the
new restaurant licenses. At the last meeting, staff recommended a $400 fee for this type of license.
The Council amended that fee to $40 with the understanding that the staff would check with other
jurisdictions to determine what their fees are or will be. Glen Neier has called the other attorneys.
It appears that we are the first City to begin the fee process. Apparently there has not been much
thought put into this at this time. The general tenor, however, was that they assumed it would be the
same as the fees for beer and wine licenses.
The arguments at the last meeting seemed to be centered around the fact that this additional $400 fee
was unanticipated and that it would take a large quantity of drink sales to make up the difference.
The other argument was one that the fees paid to the State were high and the additional fee would
put additional burdens (financing) on the restaurants.
The real question, in my opinion, should not be one of economics, but one of equity. Equity to all
of the license holders would be:
*Those with the ability to sell beer/wine should pay the same fee.
*Those with the beer/wine license pay the same fee to the State.
*Those with the beer/wine license should pay the same percentage of the State fee.
*Those with the restaurant beer/wine license have already paid a "reduced" fee to the
State when compared to the regular license (which becomes an enormous economical
asset).
Agenda -March 2, 1"8
RECOMMENDATION: Economics to the license holder is important to the restaurants but if we
proceed with the $40, I believe we have a level of unacceptable inequity. If you desire to recognize
a different fee, I would suggest since the beer only is $200, the beer and wine is $400, I would
suggest a $300 fee as fair since this would recognize a difference in the potential revenue. This is still
not equal in terms of the percentage fees that are already established. My recommendation is to
continue with the same percentage of the State fee on all licenses.
ACTION REQUIRED: Second reading of this ordinance is required with the fee that you desire.
AN ORDINANCE AMENDING CHAPTER 3, ALCOHOLIC BEVERAGES, KALISPELL
MUNICIPAL CODE BY AMENDING ORDINANCE NO. 874, 5 1 (§ 3-6, KALISPELL
CITY CODE) TO PROVIDE FOR AN ANNUAL LICENSE FEE FOR RESTAURANT BEER
AND WINE LICENSES; AND DECLARING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL,
MONTANA AS FOLLOWS:
SECTION I. That Ordinance No. 874, § 1, (§ 3-6, Kalispell City
Code) is hereby amended to read as follows:
A) The City Finance Department may issue a license to sell
liquor, beer and wine (an all -beverage license) or a
beer, only, or beer and wine, or a restaurant beer and
wine license, at retail within the City pursuant to 16-
4-503, and 16-4-420 MCA. Each licensee licensed for an
all -beverage license under this Section shall pay an
annual license fee of five -eights (5/8) of the amount
charged by the State for the license issued by the State
to such person or persons. Each licensee for a beer,
only, or beer and wine license under this Section shall
pay an annual license fee of 100% of the amount charged
by the State for license issued by the State to such
person or persons.
B) A restaurant beer and wine licensed issued pursuant to S
16-4-420, MCA shall pay an annual license fee of Forty
Dollars ($40.00). r
C) Licenses issued or transferred pursuant # thi 'Section
shall be rorated by the month, for the year, in which
the issuance or transfer takes place.
SECTION Ii. This Ordinance shall take effect from and after 30
days of its final passage by the City Council.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL,
MONTANA, THIS DAY OF MARCH, 1998.
Wm. E. Boharski, Mayor
Attest:
Theresa White
Clerk of Council