July 18, 2013 — Grayson City Council and the City Planning and Zoning Commission met Tuesday night to discuss the upcoming alcohol sales ordinance.
Discussed were regulatory fees, times allowed for the sale of alcohol, administration, and areas allowed for the businesses.
City Attorney Reid Glass presented a rough draft of the proposed ordinance and Council decided which changes were needed.
Council set the regulatory fee or “tax” on alcoholic beverage sales at four percent by the drink and six percent for packaged sales.
That revenue will be used for regulation of sales and the increased city services that will be needed.
“It is basically a shell game,” said Council member Duane Suttles. “The money will go into the general fund but you can't just spend it anywhere. We will have to disperse it to cover the costs of additional police and fire protection, the ABC administrator, and whatever else we need.”
Left in question was a section of the ordinance that has never been addressed by any city. New regulations went into effect on June 21 and their implication is still uncertain.
According to KRS 243.075, subsection 2, the Council could impose a regulatory fee on the gross sales of an establishment selling alcohol by the drink, in addition to the four percent fee discussed in the first subsection of the statute.
For rough draft purposes, Glass set the fee at two percent of the gross receipts.
“I just don't see how it's fair to a restaurant that may want to open here to take this fee,” Mignon Colley told the Council. “It seems like it would be a deterrent for new places to eat which is one of the main reasons this vote was taken.”
Glass said he would contact state ABC for clarification of the statute before compiling the ordinance for its first reading, which is scheduled June 25 at 6 p.m.