Title
Discussion on wholesale liquor inspection fee
Body
SUMMARY:
Councilmember Jesse Kerley will be discussing the wholesale liquor inspection fees.
§ 8-306 of the Crossville Municipal Code imposes “an inspection fee in the maximum amount allowed by T.C.A. § 57-3-501”. This amount shall not exceed 8% for municipalities located in counties of the state having a population of less than 60,000, according to the latest federal census. Cumberland County’s population in 2010 was 56,053. For counties with a population of 60,000 or more, the fee is capped at 5%.
There have been questions about lowering the fee to 5%.
2014-15
Wholesale sales $5,709,071.98
8% Inspection fee $ 456,725.76
wholesaler fee (5%) - 22,836.28
Net to City $ 433,889.48
5% Inspection fee $ 285,453.60
Wholesaler fee (5%) - 14,272.68
Net to City $ 271,180.92
Loss to City -$ 162,708.56
To re-coup the loss revenues of $162,708.56 at 5% would require an increase of approximately $3,300,000 in wholesale sales for the year.
BUDGET ACCOUNT:
Recommended Action
NECESSARY COUNCIL ACTION: