(A) Pursuant to KRS 243.075, there is hereby imposed a regulatory license fee upon the gross receipts of sale of alcoholic beverages of each establishment licensed in the city to sell alcoholic beverages.
(B) The regulatory license fee authorized hereby shall be established at a rate that will generate revenue that does not exceed the total of the reasonable expenses actually incurred by the city in the immediately previous fiscal year for the additional cost, as demonstrated by reasonable evidence, of:
(1) Policing;
(2) Regulation; and
(3) Administration, as a result of the sale of alcoholic beverages within the city.
(C) The regulatory license fee established hereby shall become continuously effective on the first day of January, 2016 and shall apply thereafter to each establishment licensed in the city to sell alcoholic beverages.
(D) In the first year of effectiveness (FY 2016), the rate of the regulatory license fee shall be set pursuant to KRS 243.075(5). The regulatory license fee for Fiscal Year 2019 is established at the rate of five percent (5%) of the gross receipts of sale of alcoholic beverages of each establishment licensed in the city to sell alcoholic beverages.
(E) (1) Beginning in Fiscal Year 2016-2017 and continuing thereafter, the regulatory license fee rate for each fiscal year shall be established according to the requirements set forth in division (B) above. Pursuant to said requirements, the City Council may in conjunction with the adoption of the city budget, annually establish the rate at which the regulatory license fee shall be applied.
(2) Failure by the City Council to establish the rate for the regulatory license fee by the first day of any fiscal year shall result in the automatic setting of such rate, for that fiscal year, at such rate as was applied in the immediately preceding fiscal year.
(F) (1) Every establishment licensed in the city to sell alcoholic beverages shall collect the regulatory license fee on a monthly basis and shall:
(a) Fully and accurately complete a city ABC Regulatory Fee return, on such form as shall be supplied by the city, reflecting the monthly gross receipts for the sale of alcoholic beverages for such establishment and the regulatory fee due thereon;
(b) Reporting. Deliver the completed quarterly return and all fees collected hereunder to the city on a quarterly basis, no later than the 30th day of the month next following the end of the quarter.
1. First quarter: July, August, September - Return due no later than October 30th;
2. Second quarter: October, November, December - Return due no later than January 30th;
3. Third quarter: January, February, March - Return due no later than April 30th; and
4. Fourth quarter: April, May, June - Return due no later than July 30th.
(2) A penalty, payable by the licensed establishment shall be assessed for failure to either file a return or to deliver all collected fees as required herein. Said penalty shall be the greater of fifty dollars ($50) per month for each month of non-compliance, or an amount equal to five percent (5%) of the regulatory fee due for each month or months for which a return was not filed or the regulatory fee was not collected and/or delivered.
(3) Failure by any establishment licensed in the city to sell alcoholic beverages to either collect the regulatory license fee, or to deliver the completed return and fees to the city within ten (10) days of the due date shall additionally constitute a violation of the city ABC regulations and shall subject the licensee to possible license suspension or revocation.
(G) All revenue received from the imposition of the regulatory license fee authorized by this section, shall be:
(1) Deposited into a segregated fund established by the city;
(2) Spent only in accordance with the requirements of the Kentucky Revised Statutes and this section; and
(3) Audited under an annual audit performed pursuant to KRS 43.070, 64.810, and 91A.040.
(H) The regulatory license fee shall be in addition to any other fees or licenses permitted by law, but a credit against the fee shall be allowed in an amount equal to any licenses or fee imposed by the city pursuant to KRS 243.060 and KRS 243.070.
(Ord. 2015-005, passed 9-14-15; Am. Ord. 2016-005, passed 6-13-16; Am. Ord. 2017-007, passed 6-15-17; Am. Ord. 2018-006, passed 10-8-18)