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CITY OF OWASSO, OKLAHOMA
NUMBER 465
AN ORDINANCE PERTAINING TO PART 3 - ALCOHOLIC
BEVERAGES OF THE CODE OF ORDINANCES OF THE
CITY OF OWASSO, RELATING TO CHAPTER 1 -
ALCOHOLIC BEVERAGES; TAXATION AND REGULATION,
SECTION 3 -103 OCCUPATION TAX LEVIED, REPEALING
SECTION 3- 103(A)(7) WHICH PROVIDES AN ANNUAL
OCCUPATION TAX ON A PACKAGE STORE IN THE
AMOUNT OF $300.00, RELATING TO CHAPTER 2 -
NON- INTOXICATING BEVERAGES SECTION, 3 -204,
LICENSE FEE, SECTION 3 -205 LICENSE REQUIRED,
AND SECTION 3 -206 COMPLIANCE WITH STATE LAW;
NOT TRANSFERRABLE, REPEALING SAME, DECLARING
AN EFFECTIVE DATE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA,
THAT:
Section 1: Part 3 - Alcoholic Beverages of the Code of
Ordinances of the City of Owasso, Oklahoma, Chapter 1 - Alcoholic
Beverages; Taxation and Regulation, Section 3- 103(A)(7) which
provides for levy of an annual occupation tax upon each person,
firm or corporation engaged within the City in the occupation of
package store in the amount of $300.00, be and same hereby is
repealed.
Section 2: Part 3 - Alcoholic Beverages of the Code of
Ordinances of the City of Owasso, Oklahoma, Chapter 2, Non-
Intoxicating Beverages, Section 3 -204, License Fee, Section 3 -205,
License Required, Section 3 -206, Compliance with State Law; Not
Transferrable, be and same hereby are repealed.
Section 3: That this ordinance shall upon adoption take
effect thirty (30) days from the date of first publication as
provided by State Law.
DATED this 20th day of July, 1993.
CITY OF OWASSO, OKLAHOMA
Bob Randolph, Mayor
ATTEST: Marcia Boutwell, City Clerk
Ronald D. Cates, City Attorney
Affidavid Of Pubficatioll
Published in the Owasso Reporter,
Owasso, Tulsa County,
STATE OF OKLAHOMA, TULSA COUNTY, ss:
home. July 29, 1993,
CITY OF OWASSO, OKLAHOMA
NUMBER 465
AN ORDINANCE PERTAINING TO PART 3 - ALCOHOLIC
BEVERAGES OF THE CODE OF ORDINANCES OF THE
CITY OF OWASSO, RELATING TO CHAPTER 1 -
ALCOHOLIC BEVERAGES; TAXATION AND REGULATION,
SECTION 3 -103 OCCUPATION TAX LEVIED, REPEALING
SECTION 3- 103(A)(7) WHICH PROVIDES AN ANNUAL
OCCUPATION TAX ON A PACKAGE STORE IN THE
AMOUNT OF $300.00, RELATING TO CHAPTER 2 -
NON- INTOXICATING BEVERAGES SECTION, 3 -204,
LICENSE FEE, SECTION 3 -205 LICENSE REQUIRED,
AND SECTION 3 -206 COMPLIANCE WITH STATE LAW;
NOT TRANSFERRABLE, REPEALING SAME, DECLARING
AN EFFECTIVE DATE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA,
THAT:
Section 1: Part 3 - Alcoholic Beverages of the Code of
Ordinances of the City of Owasso, Oklahoma, Chapter 1 - Alcoholic
Beverages; Taxation and Regulation, Section 3- 103(A)(7) which
provides for levy of an annual occupation tax upon each person,
firm or corporation engaged within the City in the occupation of
package store in the amount of $300.00, be and same hereby is
repealed.
Section 2: Part 3 - Alcoholic Beverages of the Code of
Ordinances of the City of Owasso, Oklahoma, Chapter 2, Non-
Intoxicating Beverages, Section 3 -204, License Fee, Section 3 -205,
License Required, Section 3 -206, Compliance with State Law; Not
Transferrable, be and same hereby are repealed.
Section 3: That this ordinance shall upon adoption take
effect thirty (30) days from the date of first publication as
provided by State Law.
DATED this 20th day of July, 1993.
CITY OF OWASSO, OKLAHOMA
Bob Randolph, Mayor
ATTEST: Marcia Boutwell, City Clerk
Ronald D. Cates, City Attorney
TO: THE HONORABLE MAYOR AND CITY COUNCIL
CITY OF OWASSO
FROM: RODNEY J RAY
CITY MANAGER
SUBJECT: REQUEST FOR ELIMINATION OF LICENSE FEES FOR PACKAGE
LIQUOR STORES AND NON-INTOXICATING BEVERAGE
RETAILERS
DATE: July 15, 1993
BACKGROUND:
Mr Mike O'Neal, a citizen of Owasso and owner of a business located in the City (Owasso
Discount Liquor and Wine), has requested to appear before the Council for the purpose of
requesting relief from certain licenses required of package liquor stores, This memorandum is
presented to aquaint the Council with that request and the similar request of retail outlets selling
non-intoxicating beverages (less than 3.2% alcohol). Additionally, in anticipation that the
Council may want to take action, the staff developed a recommendation for your consideration
of this issue.
On June 15, 1993, the City Council adopted Ordinance #463 effectivly repealing the City's
"Business Licenses" for the majority of retail businesses. The approval of that measure was
widely supported by the business community, council and staff as a good message to people who
may consider Owasso as a site for their business. The corresponding loss of revenue to the City
was approximately $12,000. Previously the Council, on July 17, 1993, enactted Ordinance #417
reducing from $600 to $300 the retail "package Liquor Store" license fee.
The staff has now recieved a request from several businesses that there be a consideration of the
elimination of the reatil beer licenses ($20.00 annually) and the elimination of the package liquor
store license ($300.00 annually). The staff has met with representatives of merchant groups to
disucss the issue. Additionally, I have disucssed the issue individually and separetly with some
members of the Council. There have been staff evaluations of the request and discussions of
the appropriateness of the licenses.
An analysis of the fiscal impact of these licenses indicates that there is a potential loss in revenue
of $900.00 from retail package liquor store liceses and a potential loss of revenue of $340.00
from retail non-intoxicating beverage licenses. the loss of total revenue of $1240.00 out of a
$4,362,287.00 budget is insignificant and will have no significat effect on the operations of the
MEMORANDUM
Elimination of License Fees
July 15, 1993
Page 2
City. However, the rational driving this decision should not be the amount of dollars involved,
but rather the equity and fairness of the action. There are many instances wherein the City
collects even smaller amounts of fees o Separately, many of those specific revenue
sources may be insignificant, however, as a part of the aggregate, they combine to produce the
funds needed to provide existing services at existing levels.
The staff has also conducted an analysis of the two licenses based on the same criteria used to
develop a recommendation relating to repeal of the City's business liceses. That analysis
indicated that the City performed no regulatory or inspection services directly relating to those
licenses other than normal law enforcement action pertaining to violations of statutes. The state
currently requires a state license for both operations and, as a part of their regulatory
responsibilitites, do provide checks of the facilities and compliance with "ABLE" regulations.
Based on that analysis, the conclusion was that these licenses are for the purpose of raising
revenue and do notrepresent a "charge for services". While there is nothing wrong with
revenue measures, there may be a more equitable method of producing those revenues that does
not have an adverse impact on local merchants.
Ordinance #465, if approved as requested, would repeal the license fee now charged for retail
package liquor stores and retail stores selling non -intoxicating beverages (3.2 beer), as well as
those establishments having an "on premise" license for non-intoxicating beverage. Mr Cates
has prepared and reviewed the ordinance.
RECOMMENDATION:
The staff recommends Council adoption of Ordinance #465.
ATTACHMENTS:
1. Ordinance #465
2. Section 3-103(A)(7) of the Municipal Code
3. Section 3-204; 3-205; 3-206 of the Municipal Col-,
Sec. 3-102 Alcoholic Beverages Sec® 3-104
4. The following specific terms, to-wit: brewer, class B wholesaler, distiller,
manufacturer, person, premises, winemaker, and Oklahoma winemaker, and wholesaler,
are given the meanings defined for them by the Oklahoma Alcoholic Beverage Control
act; and
5. Words in the plural include the singular, and vice versa; and words
imparting the masculine gender include the feminine.
(Prior Code, Sec. 1
I . Brewer $1,250.00;
2. Distiller $3,125.00;
3. Winema , ker $625.00;
4. Oklahoma winemaker $75000;
5. Wholesaler $2,500000;
6. Class B wholesaler $625.00; or
7. Package store $300.00.
S. The above occupation taxes for brewer and class B wholesaler shall be
reduced by seventy-five percent (75%) if the licensee is also holder of a state license to
manufacture or wholesale, as the case may be, any nonintoxicating malt beverages as
provided in Title 37 of the Oklahoma Statutes. (Prior Code, Sec. 2-2; Ord. No. 417,
7/17/90)
State Law Reference., State license fees, authority of city to levy some as state
fee, 37 O.S. Section 518.
SECTION 3-104 TAX TO BE PAID TO CITY CLERK; RECORDS; STATE LICENSE
REQUIRED.
A. All occupation taxes herein provided shall be paid in advance, to the city
clerk, who shall issue a receipt therefor. The City Clerk shall record the name of such
licensee and the address where he engages in his occupation. Such records shall be duly
filed and kept in the permanent files of the city for at least five (5) years. Tehreafter,
upon resolution by the council such records may be destroyed. Every person receiving
such a receipt from the city clerk shall post the tax receipt in a conspicuous place in
the permises wherein he carries on his occuption.
Page 3-4
SECTION 3-204 LICENSE FEE.
A. There is hereby levied upon each retail dealer in nonintoxicating beverages
for consumption on and off the premises, an annual municipal license fee of
Twenty Dollars ($20.00). There is hereby levied upon each retail dealer in
nonintoxicating beverages in original packages and not for consumption on the premises,
an annual municipal licnese fee of Ten Dollars ($10.00).
B. All such municipal licnese fees shall be paid to the city at the time of
issuance and in the manner herein prescribed, after making application to the city
clerk. The application shall set forth:
1. The location of the business;
2. The address of the retail dealer;
3. If the retail dealer is a corporation, the name of the president and
managing officers thereof; and if the retail dealer is a partnership, the name of all the
partners; and
4. The name and number of the county and state permits. The license may
be issued upon receipt of the satisfactorily completed application and license fees.
C. The license fees herein provided are minimum fees, and there shall be no
proration for periods of times shorter than one year. The licenses shall expire on June
30 of each year.
D. The license fees herein provided shall be payable in advance on or before
the I st day of July of each year.
E. Once the license fee has been paid as provided in this section, no refunds
may be made.
F. Whenever the place of business for which the license is issued is sold, or
moved to a new location, the holder of the license shall immediately notify the city
clerk with the name of the new owner or address. (Prior Code, Sec. 2-27)
State Low Reference: State retail dealer license fees, city not to levy greater
fee, 37 O.S. Section 163.7
SECTION 3-205 LICENSE REQUIRED.
It is unlawful for any retailer, whether permanent or temporary, at any place
within the corporate limits of the city to sell, distribute or dispense any nonintoxicating
bevearges without having first paid the municipal license fee as herein required and
without securing the appropriate license and permit from the county and state.
State Law Reference: 37 O.S. Section 163.7 sets out state license fees. See 37
O.S. Sections 163.1 et seq. for other licensing requirements.
SECTION 3-206 COMPLIANCE WITH STATE LAW; NOT TRANSFERABLE.
No municipal license shall be issued to any retail dealer by the city clerk without
a satisfactory shoing that the applicant has obtained all state and county permits
required by law, and has in all other respects complied with the laws of the state
relating to the sale and distribution of nonintoxicating beverages. All license fees
levied herein shall expire midnight on June 30th of each year. No license shall be
transferable.