§ 116.06 REQUIREMENTS FOR ON-SALE FULL-SERVICE RESTAURANT LICENSES.
   (A)   An applicant for an on-sale full-service restaurant license shall provide documentation to the Finance Officer that the applicant meets all requirements of state law for an on-sale full-service restaurant license, including but not limited to: SDCL § 35-4-112. Documentation in support of initial application for full-service restaurant on-sale license. In the initial application, an applicant for a full-service restaurant on-sale license shall provide sufficient documentation to the municipality or county to prove that the primary source of revenue from the operation of the restaurant will be derived from the sale of prepared food and nonalcoholic beverages and not from the sale of alcoholic beverages. The supporting documentation concerning the primary source of revenue submitted pursuant to this section is confidential.
   (B)   The renewal of an on-sale full-service restaurant license is conditioned upon the applicant satisfying all state requirements for renewal, including but not limited to: SDCL § 35-4-113. Renewal of full-service restaurant on-sale license--Annual report. If the municipality or county is renewing a full-service restaurant on-sale license, the municipality or county shall condition the license renewal upon receiving documentation that at least 60% of gross revenue from the preceding 12 months operation of the full-service restaurant was derived from the sale of food and nonalcoholic beverages. The full-service restaurant on-sale licensee shall submit an annual report to the municipality or county on the revenues from the full-service restaurant that includes an oath verifying the validity of the information provided in the report. The report and the supporting documentation submitted pursuant to this section are confidential. The report shall contain the annual gross revenues of the licensee for the following two categories: (1) food and nonalcoholic beverage gross revenues; and (2) total gross revenues.
   (C)   Certain licensees to report amount paid for other licenses; objection to report; hearing; appeal. Any person who purchased an on-sale license issued pursuant to SDCL §§ 35-4-2(4) or 35-4-2(6) within the last five years shall report to the town the amount paid for the license. If the town requests from any other licensee the amount originally paid for any other on-sale license pursuant to SDCL § 35-4-117, the licensee shall report that amount to the town. The declared purchase price shall be made under oath and shall include the documents establishing the amount paid for the on-sale license. If the transaction included other personal property or real property, the full market value of the other property on the date of the transaction shall be deducted from the total purchase price to establish the amount paid for the license. The person who owned the license as of the date of the adoption of this section has the burden of establishing the amount paid for the license. If the amount reported is used to determine current fair market value pursuant to SDCL § 35-4-117, any licensee who contends that the amount does not accurately reflect the fair market value of the license on the date of purchase may file an objection to the report. The objection shall be filed with the town within 30 days of the date the license fee is set pursuant to SDCL § 35-4-116. If an objection is filed, the Board of Trustees for the town shall conduct a hearing to determine the fair market value of the license. The determination of the Board of Trustees for the town may be appealed to circuit court.
   (D)   The city will maintain a registry of each on- sale license that is being offered and will provide a copy of the registry to anyone who requests a new on-sale full-service restaurant license.
   (E)   All full-service restaurant licensees shall be required to pay a one-time initial licensing fee equal to the market value of the license established by the board under SDCL § 35-4-117, which will be at least $1 for each person residing within the municipality as measured by the last preceding decennial federal census. (Source SDCL §§ 35-4-19.1, 35-4-111, 35-4-116, and 35-4-117. Nine, Inc. v. City of Brookings, 797 N.W.2d 73 (SD 2011)).
(Ord. 4.0, passed 9-15-2015; Ord. passed 9-4-2018)