Alcohol Tax On Second Reading

Aldermen Will Decide At March 12 Meeting

FARMINGTON — An ordinance to assess a 5- percent sales tax on alcohol by the drink was placed on second reading Monday night, with the Farmington City Council scheduled to vote on whether to adopt the tax at its March 12 meeting.

If approved, the sales tax would only affect alcoholic drinks sold at the Golf Course at Valley View but City Attorney Steven Tennant pointed out that even though the city is a dry town, local businesses can apply for a private club permit for on-premise consumption.

“One restaurant in town is going to pursue this, from what I’ve heard,” Tennant told the council members.

Farmington became a dry city in 2004 when voters turned down the option to allow stores to sell alcohol. However, Tennant said this vote applied to the city’s boundaries at the time of the election. Areas annexed since that time would not fall under the vote. The Golf Course at Valley View was annexed into the city on March 15,

2008, and acquired a permit for on- premise consumption of alcoholic beverages prior to being annexed into the city.

Tennant said a restaurant or business interested in serving on- premise alcoholic drinks could apply for a permit to operate as a private club to the director of the Alcoholic Beverage Control Division.

The director can approve the permit but if a protest is filed, then the request would go before the ABC Commission.

Benton County is a “perfect example” of how private club permits work, Tennant said. Benton County is a dry county but in 2007, 100 restaurants held private club permits to sell alcoholic drinks. That number now has increased to 120 restaurants, Tennant said.

The ordinance

would require private businesses licensed by the state to sell alcoholic beverages to pay a $ 50 annual fee for the “privilege of operating a private club” within the city limits. This permit would be in addition to the annual city business license. The 5percent sales tax would be levied on the sale of alcoholic drinks on the premises.

Mayor Ernie Penn said he’s had several people ask if the proposed ordinance means the city is approving the sale of alcohol.

“This is just approving a tax,” Penn said. “It only affects Valley View right now.”

He said, though, that two businesses have approached him asking about the process to put the sale of alcoholic beverages on the ballot again.

Tennant said he would be willing to explain the process. Basically, Tennant said a petition calling to place the issue before voters would require valid signatures from 38 percent of the city’s registered voters.

In other action, the council approved a request from Fire Chief Mark Cunningham to advertise a new fulltime firefighter’s position for 2012.

The position’s salary will be $28,945 plus benefits and will increase to $30,392 plus benefits after the successful candidate graduates from the fire academy. The new position was included in the 2012 fire department budget.

The council also approved a resolution to confirm a continued use agreement with the Farmington School District for the softball field located off Rheas Mill Road. The agreement allows the city to continue to use the field and the restroom facilities for 10 years, through July 1, 2022.