HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/17/2017 - FIRST READING OF ORDINANCE NO. 134, 2017, AMENDINGAgenda Item 6
Item # 6 Page 1
AGENDA ITEM SUMMARY October 17, 2017
City Council
STAFF
Peggy Streeter, Senior Sales Tax Auditor
Ryan Malarky, Legal
SUBJECT
First Reading of Ordinance No. 134, 2017, Amending Chapter 3, Article III, Section 3-76 of the Code of the
City of Fort Collins to Set the Occupation Tax Rate for New Categories of Liquor Licenses.
EXECUTIVE SUMMARY
The purpose of this item is to add the new license types and corresponding tax to the occupation tax schedule.
The Colorado General Assembly has added three new types of liquor licenses. The City has an occupation tax
for the liquor license categories established by the State.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The City charges an occupation tax on businesses that sell at retail any fermented malt beverage, malt, special
malt, vinous or spirituous liquors, in addition to license fees that these businesses must pay to the City
annually. The amount of tax charged is listed in City Code Section 3-76(b) according to the category of license
the business holds.
In recent years, the Colorado General Assembly has adopted legislation that created three new types of liquor
licenses. Businesses operating in the City may apply for the new license types. The new types are a vintner's
restaurant license, a lodging and entertainment license, and a distillery pub license. These new licenses are
currently not specifically identified in the occupation tax schedule in Section 3-76(b). Under the current version
of Section 3-76(b), future businesses seeking any of these new license types would likely have previously
applied for a hotel and restaurant license, tavern license, or brew pub license. Section 3-76(b) currently
imposes a $1,600 occupation tax on these three types of licensees The proposed Ordinance will amend
Section 3-76(b) to add these three new license types and to set the occupation tax for them at $1,600 so the
effective cost to the licensees would be the same as they would currently pay.
CITY FINANCIAL IMPACTS
There would be no financial impact if adopted since there will be no increase in net revenues to the City. If the
Ordinance is not adopted, the City’s ability to collect the occupation tax on businesses categorized under one
of the new license types would be in question.
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ORDINANCE NO. 134, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 3, ARTICLE III, SECTION 3-76 OF THE CODE OF
THE CITY OF FORT COLLINS TO SET THE OCCUPATION TAX RATE
FOR NEW CATEGORIES OF LIQUOR LICENSEES
WHEREAS, businesses that sell at retail any fermented malt beverage, malt, special malt,
vinous, or spirituous liquors within the City of Fort Collins are required to pay an annual
occupation tax; and
WHEREAS, the annual occupation tax rate for particular categories of liquor licensees is
set forth in a schedule in Section 3-76 of the City Code; and
WHEREAS, the Colorado General Assembly adopted legislation creating three new
types of liquor licenses, known as a lodging and entertainment license, a vintner’s restaurant
license, and a distillery pub license; and
WHEREAS, these three license categories are not specifically identified in the tax rate
schedule in Section 3-76 of the City Code; and
WHEREAS, it is the desire of City Council to amend Section 3-76 of the City Code to set
the tax rate for these specific license categories; and
WHEREAS, these categories of licensees would likely have previously applied for a
hotel and restaurant license, tavern license, or brewpub license, each of which have a tax rate of
sixteen hundred dollars ($1600); and
WHEREAS, the adoption of this Ordinance does not result in an increase in net revenues
to the City because the tax rate for these businesses is set at the same rate that would apply had
the businesses applied under another similar license category.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Chapter 3, Article III, Section 3-76 of the City Code is amended to
read as follows:
Sec. 3-76. – Occupation tax.
…
(b) The following annual occupation taxes are hereby established and shall be paid by
the applicant or licensee to the City:
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License Occupation Tax
(1) Retail liquor store license $ 750.
(2) Liquor-licensed drugstore license 750.
(3) Beer and wine license 800.
(4) Hotel and restaurant license 1,600.
(5) Tavern license 1,600.
(6) Brew pub license 1,600.
(7) Club license 800.
(8) Arts license 150.
(9) All licenses to sell fermented malt beverages for
consumption both on and off the premises
750.
(10) All licenses to sell only fermented malt beverages by
the drink for consumption on the premises
750.
(11) All licenses to sell only fermented malt beverages in
their original containers for consumption off the
premises
750.
(12) Optional premises license (not associated with a hotel
and restaurant license)
1,600.
(13) Vintner’s restaurant license 1,600.
(14) Lodging and entertainment license 1,600.
(15) Distillery pub license 1,600.
…
Introduced, considered favorably on first reading, and ordered published this 17th day of
October, A.D. 2017, and to be presented for final passage on the 7th day of November, A.D.
2017.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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Passed and adopted on final reading on this 7th day of November, A.D. 2017.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk