HomeMy WebLinkAboutApprove Rescinding Resolution No. 4079, License Fees for Beer, Wine and Liquor Licenses
Commission Memorandum
REPORT TO: Honorable Mayor and Commission Members
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Rescind Commission Resolution No. 4079
ESTABLISHING LICENSE FEES FOR BEER, WINE, AND LIQUOR
LICENSES FOR THE CITY OF BOZEMAN.
MEETING DATE: January 12, 2009
RECOMMENDATION: Rescind Commission Resolution No. 4079
BACKGROUND: On October 22, 2007 the Commission approved increases in the City’s
license fees for beer, wine, and liquor. Because the fee increase was called into question, the
City sought an Attorney General opinion regarding our authority in the matter. The new fees
schedule was not implemented, pending the AG opinion.
An AG draft opinion letter has been issued and it has been determined that the City’s self-
governing powers do not allow for the increase. Based on the determination, we are asking that
the Commission rescind the resolution in question.
FISCAL EFFECTS: None. We had not collected the higher fee amounts, nor had we
budgeted to receive increased revenue from these licenses.
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ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
Anna Rosenberry, Finance Director Chris Kukulski, City Manager
Resolution No. 4079
Letter to Licensees, November 2007
Draft Attorney General Opinion Letter
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Date: November 27, 2007
To: Beer/Wine/Liquor Licensees within the City of Bozeman
From: Anna Rosenberry, Finance Director
Re: Newly established License Fees
On October 22, 2007 the City Commission adopted Ordinance No. 4079, a new schedule of fees for City
Beer, Wine and Liquor licenses, which had not been increased in more than 15 years. The fees exceeded
the limits of Montana Code Annotated 16-4-503. In doing so, the city was seeking to recover the
increasing costs of regulating the sale of alcohol in the City. Under self-government powers, a city is
authorized to supersede state statutes by adopting an Ordinance (MCA 7-1-105.)
Since the time of adoption, further questions have arisen as to the City’s authority to establish the
higher fees. These questions will not be resolved prior to our year-end renewal deadlines, and we
prefer not to charge the higher fees until the issue can be finally determined.
As a result, Ordinance No. 4079 will be held in abeyance for the license year beginning January 1, 2008.
We will be returning any amounts paid that exceed our previously adopted fee schedule.
I apologize for this inconvenience.
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