Town Council Regular Session
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Item # 3.
Julie Bower, Town Clerk's Office
Town Clerk's Office
DISCUSSION AND POSSIBLE DIRECTION TO STAFF REGARDING AN INCREASE TO THE LIQUOR LICENSE APPLICATION PROCESSING FEE
Staff recommends that the liquor license application processing fee be increased to $500 to cover the costs of processing a liquor license application and to be more in line with the fees assessed by surrounding jurisdictions.
Currently, a $50 application processing fee is assessed when an establishment applies for a liquor license. Liquor licensed establishments pay an annual Liquor License Tax of $80 instead of an annual Business License Tax.
BACKGROUND OR DETAILED INFORMATION:
The Town’s $50 application processing fee does not cover the costs incurred by the Town to process the liquor application and is much lower than surrounding communities. Marana’s application fee is $500; Tucson’s is $1,636 and Sahuarita’s application fee is $400. Please see Attachment 1 for comparisons to several other Arizona towns and cities.
The Town’s cost to process a new liquor license application is approximately $217 to $679 depending upon the amount of time involved for the Police Department to complete a thorough background investigation. Please see Attachment 2 for a breakdown of the costs incurred by the Town.
The Town’s $80 annual liquor license tax is commensurate with many Arizona towns and cities however there are some communities that charge up to $1,200 annually for the liquor license depending upon the type of license being sought.
The Town is not recovering its costs to process liquor license applications and loses approximately $167 when the background investigation is straightforward and $629 when the background investigation is more complicated. If we use the lower end of the cost scale, for the 20 applications processed in 2010, the Town failed to recover $3,340 in costs and on the higher end, $12,580. A liquor license adds value and revenue to the business and it is not unreasonable for the Town to recoup the costs of processing the application from the business.
I move to direct staff to prepare a resolution increasing the liquor license application processing fee to $____ or
I move …..
Attachment 1 - Liquor Fee Comparison
Attachment 2 - Processing Costs
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