Town Council Regular Session


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  Item # 3.       
Meeting Date: 05/04/2011  
Submitted By: Julie Bower, Town Clerk's Office
Department: Town Clerk's Office  

Information
SUBJECT:
DISCUSSION AND POSSIBLE DIRECTION TO STAFF REGARDING AN INCREASE TO THE LIQUOR LICENSE APPLICATION PROCESSING FEE
RECOMMENDATION:
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.
EXECUTIVE SUMMARY:
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.
FISCAL IMPACT:
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.
SUGGESTED MOTION:
I move to direct staff to prepare a resolution increasing the liquor license application processing fee to $____ or

I move …..
Attachments
Attachment 1 - Liquor Fee Comparison
Attachment 2 - Processing Costs


    

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