(A) As required by state law, the license fee charged for a full-service restaurant on-sale license shall be at or above the current fair market value for such license as determined herein. The fair market value so established shall be in the amount of $60,000 of which shall be paid at the time of the issuance of application filed.
(B) The license fee shall be initially established by resolution within 90 days of the initial adoption of this subchapter. Subsequent changes in license fee shall not be made for a period of 10 years from the effective date of adoption of this subchapter unless a population growth reported by the federal decennial census requires an increase in the fee.
(C) Fair Market Value for full-service restaurant license shall be established as follows:
(1) Within 90 days of the effective date of this subchapter and as required by state statute, each licensee within the city who owns an on-sale license issued pursuant to SDCL 35-4-2 (4) or (6) as of January 1, 2008, and who purchased the license or had the license transferred to such licensee at any time between January 1, 2003, and January 1, 2008, shall report the amount originally paid for the on-sale license of the town Finance Department on forms provided by the city. Any form submitted pursuant to this provision shall be signed under oath and shall include the documents establishing the amount originally paid for the on-sale license. If the transaction for the purchase of the on-sale license included real or personal property, the full market value of the real or personal property on the date of the original sale shall be deducted from the total transaction price to determine the amount paid by the licensee for the on-sale license. The burden of establishing the amount paid for the license shall be on the licensee. Any licensee contesting the fair market value of the real or personal property may appeal the valuation adopted by the city to circuit court.
(2) For purposes of this section, the term, "Current Fair Market Value" means the documented price of the on-sale license most recently sold between January 1, 2003, and January 1, 2008, through an arm's length transaction, less the value of any real or personal property included within the transaction.
(Ord. 111.17, passed 9-7-2008)