HomeMy WebLinkAboutOrdinance 4042 ORDINANCE NUMBER 4 0 4 2
AN ORDINANCE REPEALING CHAPTER 111 OF THE CODE OF
FAYETTEVILLE AND ADOPTING GENERAL AND SPECIFIC
PROVISIONS, REQUIREMENTS FOR PERMITS, FEES, AND HOURS OF
OPERATION FOR THE REGULATION OF ALCOHOLIC BEVERAGES
WHEREAS, an election was held on March 26, 1996, pursuant to Resolution Number 18-
96, at which election a majority of the voters of the City of Fayetteville voting in the election
approved the sale of alcoholic beverages for on-premises consumption in the City in accordance
with A. C. A . 3-9- 101 et seq; and,
WHEREAS, A. C . A . §34-202 provides that all municipal corporations may license and
tax the manufacture and sale of vinous (except wines), spirituous, or malt liquors by the permittees
so authorized by the Alcoholic Beverage Control Board for the State of Arkansas; and ,
WHEREAS , A. C. A . §3-5-211 provides that it shall be unlawful for any person to sell,
distribute, or manufacture beer and light wines without first having made application to and
obtained a permit from the city where the business is to be conducted; and,
WHEREAS, the City Council wishes to amend Chapter 111 , Alcoholic Beverages, of the
Code of Fayetteville to provide for on-premises consumption as well as to update and clarify
existing regulations .
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS :
Section 1 . That Chapter 111 of the Code of Fayetteville is hereby repealed and the
following shall be inserted in its stead:
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CHAPTER 111 : ALCOHOLIC BEVERAGES
GENERAL PROVISIONS
111 .01 APPLICABILITY.
(A) It is hereby declared that the business of manufacturing, transporting, storing,
handling, receiving, distributing, selling, serving, or dispensing, either at wholesale or retail , any
controlled beverage, except wine, within the City of Fayetteville, is a privilege, and for the
exercise of such privilege there are hereby imposed the regulations, requirements, restrictions,
fees , and taxes as set forth in this chapter.
(B) These general provisions shall apply to all permittees in addition to any specific
provisions under individual headings for each type of permit.
111 .02 DEFINITIONS :
For the purposes of this chapter, the following definitions shall apply unless the context
clearly indicates or requires a different meaning . Words and phrases not specifically defined in
this Chapter shall have the meanings assigned by Title Three of the Arkansas Code Annotated
and/or the Arkansas Alcoholic Beverage Control Division Regulations .
Alcoholic Beverages means all intoxicating liquors of any sort, other than beer and wine.
Beet means any fermented liquor made from malt or any substitute therefor and having an
alcohol content not in excess of five percent (5 %) or less than one-half of one percent (0.5 %) by
weight;
City means the City of Fayetteville, Arkansas .
Controlled Beverages means all beverages of any kind subject to regulation under any
alcoholic beverage control law of the State of Arkansas and this chapter.
Hotel means every building or other structure commonly referred to as a hotel, motel,
motor lodge, or by similar name, which is kept, used, maintained, advertised, and held out to the
public to be a place where food is actually served and consumed and sleeping accommodations are
offered for adequate pay to travelers or guests, whether transient, permanent, or residential, in
which fifty (50) or more rooms are used for the sleeping accommodations of such guests and
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having one ( 1) or more public dining rooms with adequate and sanitary kitchen facilities, and a
seating capacity for at least fifty (50) persons, where meals are regularly served to such guests,
such sleeping accommodations and dining room being conducted in the same building or in
separate buildings or structures used in connection therewith that are on the same premises and
are a part of the hotel operation.
Large Attendance Facility means a facility housing convention center activity , or tourism
activity , or trade show and product display and related meeting activity , or any similar large
meeting or attendance activity, and, either itself or through one or more independent contractors,
complies with all of the following :
(a) Actually serves full and complete meals and food on the premises;
(b) Has one ( 1) or more places for food service on premises with a seating capacity for
not less than five hundred (500) people;
(c) Employs a sufficient number and kind of employees to serve meals and food on the
premises capable of handling at least five hundred (500) people; and
(d) Serves controlled beverages on premises at one ( 1 ) or more places only on days that
meals and food are served at one (1) or more places on premises.
LightWin means the fermented juices of grapes, berries, or fruits and any other mixture
containing the fermented juice of grapes , berries , or fruits, having an alcoholic content between
one-half of one percent (0. 5 %) and five percent (5 %) alcohol by weight.
Malt Beverage Products means any liquor brewed from the fermented juices of grain
having an alcoholic content of not less than five percent (5 %) nor more than twenty-one percent
(21 %) by weight.
Malt Liquor means liquor brewed from the fermented juices of grain.
Microhrewery - Restaurant means any establishment in which beer, containing not in
excess of five percent (5 % ) of alcohol by weight, and/or malt beverage products, containing not
in excess of twenty-one (21 %) of alcohol by weight, are both brewed and sold at retail in a
restaurant setting under the same ownership and in the same building or attached buildings .
On-Premises Consumption means the sale of alcoholic beverages by the drink or in broken
or unsealed containers for consumption on the premises where sold .
Permit means any authorization issued by the Alcoholic Beverage Control Division of the
State of Arkansas and/or by the City pursuant to any Arkansas Alcoholic Beverage Control
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Division Regulation and /or this Chapter 111 of the Code of Fayetteville whether described as a
permit, license or otherwise.
Permittee means the person to whom a permit has been issued.
Person means any natural person, partnership, association, corporation, syndicate, or
company .
Private Club means a nonprofit corporation organized and existing under the laws of this
state, no part of the net revenues of which shall inure directly or indirectly to the benefit of any
of its members or any other individual, except for the payment of bona fide expenses of the club's
operations, conducted for some common recreational , social, patriotic, political, national ,
benevolent, athletic, or other nonprofit object or purpose other than the consumption of alcoholic
beverages. The nonprofit corporation shall have been in existence for a period of not less than one
( 1) year before application for a permit. At the time of application for the permit, the nonprofit
corporation must have not less than one hundred ( 100) members regularly paying annual dues of
not less than five dollars ($5 .00) per member, and, at the time of application, must own or lease,
or be the holder of a buy-sell agreement or offer and acceptance, or have an option to lease a
building, property, or space therein for the reasonable comfort and accommodation of its members
and their families and guests, and restrict the use of club facilities to such persons.
Restaurant means any public place or private place kept, used, maintained, advertised and
held out to the public or to a private or restricted membership as a place where complete meals
are actually and regularly served, such place being provided with adequate and sanitary kitchen
and dining equipment and a seating capacity of at least fifty (50) people and having employed
therein a sufficient number and kind of employees to prepare, cook and serve suitable food for its
guests or members. At least one ( 1) meal per day shall be served at least five (5) days a week,
with the exception of holidays, vacations and periods of redecorating . Further, on the day that
alcoholic beverages are served to customers of the outlet, the outlet must also prepare and serve
at least one ( 1) complete meal for consumption on the premises .
Retailer means any person who holds a permit under any alcoholic beverage control law
of the State of Arkansas to sell at retail controlled beverages to consumers only .
Spirituous means liquor distilled from the fermented juices of grains, fruits, or vegetables
containing more than twenty-one percent (21 %) alcohol by weight, or any other liquids containing
more than twenty-one percent (21 %) alcohol by weight.
State means the State of Arkansas.
Vinous means the fermented juices of fruits containing more than five percent (5 % ) and
not more than twenty-one percent (21 %) alcohol by weight.
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Wholesaler and Distributor means any person who holds a permit under any alcoholic
beverage control law of the State of Arkansas to purchase controlled beverages from a
manufacturer or importer and to sell such controlled beverages to retailers only .
111 .03 PERMITS REQUIRED:
(A) It shall be unlawful for any person to engage in the business of manufacturing,
transporting, storing, handling, receiving, distributing, selling, or dispensing, either at wholesale
or retail, any controlled beverage, except wine, within the City without a permit issued by the
City , or with an expired permit.
(A .C. A . §§34-202 & 3-5-211)
(B) The provisions of this chapter shall not apply to the manufacture, sale, and distribution
of wines or vinous liquors manufactured, sold, and distributed by residents of Arkansas .
( A . C . A . § 3- 1 - 103)
111 .04 APPLICATION FOR PERMITS :
(A) Application for a permit required by this chapter shall be in writing on a form
prescribed by the City and shall be accompanied by the required fee and a copy of the applicant' s
state permit. No city permit will be issued until applicant has received a state permit.
(B) It shall be unlawful for any person to make any false statement or representation in any
application required by this chapter or to give any false answer to any question contained therein.
(C) Permits required by this chapter shall be issued in such a manner that they will run
for such length of time as the state permit. Annual permit renewal fees shall be due and payable
on June 30 of each year for the succeeding year beginning July 1 .
(D) The City will not issue or renew any permits pursuant to this chapter until all
outstanding hotel, motel, and restaurant taxes and/or supplemental beverage taxes, if applicable,
are paid.
(E) No new permit shall be granted to any person to engage in the sale of liquor at retail,
for consumption off the premises, for any business situated within 200 yards of any church or
school . The distance shall be measured from the nearest point of the church or school building
to the nearest point of the building to be permitted.
(A . C .A . §3-4-206)
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(F) No other permits shall be granted to any person to engage in the business of
manufacturing, transporting, storing, handling, receiving, distributing, selling, or dispensing,
either at wholesale or retail, any controlled beverage, except wine, for any business situated within
300 feet of any church or school building. The distance shall be measured from the nearest point
of the church or school building to the nearest point of the building to be permitted.
(G) All permits issued by the City pursuant to this chapter shall be prominently displayed
on the permitted premises by the permittee in the same manner as required by the State for state
permits.
(H) When any state permit is revoked by the state or required to be returned to the state
for any reason, the city permit shall be returned to the City. The City will restore the permit upon
proof that the state permit has been restored to the applicant, provided that no reclaimed permit
will be restored to an applicant until all outstanding hotel, motel, and restaurant taxes and/or
supplemental beverages taxes, if applicable, are paid.
(1) All fees, taxes , and penalties received by the City pursuant to this ordinance shall be
deposited to the credit of general fund revenues .
(J) Permits shall not be transferable or assignable except as provided by
A . C . A . § 3-4-103 . ( A. C. A . §3-4-217)
111 .05 RIGHT OF CITY TO INSPECT RECORDS:
The City shall have the right to inspect and examine the records of any permittee subject
to any tax or permit fee based on gross sales or receipts.
111 .06 PROHIBITED ACTIVITIES/WARNING NOTICE:
(A) Any person to which a controlled beverage permit has been issued shall comply with
all laws and regulations of the State of Arkansas, the Alcoholic Beverage Control Division of the
State of Arkansas, and the City of Fayetteville regarding the control and regulation of controlled
beverages, including but not limited to the following:
( 1) Purchase by or for minors , sale to minors, or handling by minors prohibited;
(A . C .A . § § 3-3-201 et seq.)
(a) It shall be unlawful for any person under the age of twenty-one (21) years to
have in his or her possession, to purchase or attempt to purchase, or otherwise obtain any
controlled beverages .
(b) It shall be unlawful for any person to, knowingly or unknowingly, purchase on
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behalf of, furnish to, give away to, or otherwise dispose of to any person under the age of twenty-
one (21) years any controlled beverages; however, this provision shall not apply to the serving of
such to members of one' s family or to the use of wine in any religious ceremony or rite in any
established church or religion.
(c) It shall be unlawful for any person engaged in the business of manufacturing,
distributing or selling, at wholesale or retail, any controlled beverages to sell, offer for sale, or
give away, under any conditions, any such controlled beverages to any person under the age of
twenty-one (21) years. The burden of determining the age of any person shall be upon the seller.
(d) It shall be unlawful for any wholesaler, retailer, or transporter of controlled
beverages to allow any employee or other person under the age of twenty-one (21) years of age
to have anything whatsoever to do with the sale, transporting or handling of controlled beverages .
However, with the written consent of a parent or guardian, persons eighteen (18) years of age and
older may be employed by licensed liquor and beer wholesalers and by licensed native wineries
to handle controlled beverages at the place of business of the licensed wholesaler or wineries .
(2) A warning notice regarding the sale to, possession or purchase by, or furnishing to
minors of controlled beverages shall be posted in a conspicuous place in public view in each place
of business where controlled beverages are sold, served or dispensed, including all drive up
windows. The warning notices shall be of the size, have the content, and be posted in the manner
as prescribed by the Arkansas Alcoholic Beverage Control Division.
(B) No person who has received a license under any ordinance of the City of Fayetteville
for the sale or dispensing of alcoholic beverages for on-premises consumption including private
club licenses shall suffer or permit any person to appear on the licenses premises in such manner
or attire as to expose to view any portion of the pubic area, anus vulva, or genitals or any
simulation thereof, not suffer or permit any female to appear on the premises in such manner or
attire as to expose to view any portion of her breast below the top of the areola or any simulation
thereof.
(C) That no person shall bring into or consume or allow to be brought into or allow to be
consumed intoxicants or alcoholic beverages of any kind, in any commercial establishment, or
business, which suffers or permits any person to appear on the premises in such manner or attire
as to expose to view any portion of the pubic area, anus, vulva, or genitals or any simulation
thereof, or suffers or permits any female to appear on the premises in such manner or attire as to
expose to view any portion of her breast below the top of the areola or any simulation thereof
(D) If any person engaged in the sale of controlled beverages in the city shall conduct his
place of business in a manner as to constitute a nuisance, the city council shall revoke the license
of such person to sell controlled beverages in the city . .
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PENALTIES/SUSPENSION/REVOCATION
111 . 10 FURNISHING TO OR CONSUMPTION BY MINORS :
(A) Any Person convicted of knowingly or unknowingly selling , serving, giving,
procuring or otherwise furnishing any controlled beverage to any person under twenty-one (21)
years of age shall be deemed guilty of a misdemeanor and shall be fined not less than two hundred
dollars ($200.00) nor more than five hundred dollars ($500.00) .
(A .C .A . §§3-3-2019 3-3-202)
(B) Any person under the age of twenty-one (21) years who has in his or her possession,
purchases or attempts to purchase, or otherwise obtain any controlled beverage shall, upon
conviction, be deemed guilty of a misdemeanor and shall be subject to a fine of not less than ten
dollars ($ 10.00) nor more than five hundred dollars ($500.00) .
(A .C.A . §3-3-203)
111 . 11 OPERATING WITHOUT A CITY PERMIT:
(A) Beer and Light Wine. Any person who sells, serves, barters, exchanges, or gives away
beer or light wine without having a valid city permit as provided by this chapter shall, upon
conviction, be deemed guilty of a misdemeanor and shall be fined not more than five hundred
dollars ($500. 00) . Each day of such operation without a valid city permit shall constitute a
separate and distinct offense.
(A . C .A . §3-5-203)
(B) On Premises Consumption Including Private Clubs . Any person who sells, serves,
barters, exchanges, or gives away controlled beverages, except wine, for on premises consumption
without having a valid city permit as provided by this chapter shall, upon conviction, be deemed
guilty of a misdemeanor and shall be fined not more than one thousand dollars ($ 1 ,000.00) . Each
day of such operation without a valid city permit shall constitute a separate and distinct offense.
(A . C .A . §§3-9-204, 3-9-2149 3-9-223)
(C) General . Any person, except as provided in 111 . 11 (A) and (B) above, who sells ,
serves, barters , exchanges, or gives away controlled beverages, except wine, without having a
valid city permit as provided in this chapter shall, upon conviction, be deemed guilty of a
misdemeanor and shall be fined not less than five hundred dollars ($500.00) nor more than one
thousand dollars ($1 ,000.00) . Each day of such operation without a valid city permit shall
constitute a separate and distinct offense .
(A. C .A. §3-3-205)
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111 . 12 GENERAL PENALTY:
Except as set forth above, any person violating any provision of this ordinance shall be
subject to the general penalties as set out in § 10.99 of the Code of Fayetteville.
111 . 13 SUSPENSION/REVOCATION
(A) The City Council may suspend for a period not to exceed 6 months or revoke the
license of any licensee violating this Chapter after due notice to the licensee and an opportunity
for the licensee to be heard.
(B) When any license is revoked, no new license shall be issued to the same person within
one year of such revocation.
TYPES OF PERMITS - FEES
SPECIFIC PROVISIONS - HOURS OF OPERATION
111 .20 WHOLESALE:
(A) WHOLESALE LIQUOR PERMIT - Authorizes the purchase from licensed
manufacturers or importers of spirituous and vinous beverages or malt liquor containing more than
five percent (5 %) alcohol by weight, and the sale of such beverages to persons holding a valid
liquor off premises permit or a hotel, motel or restaurant on premises consumption permit.
(1) Permit Fee: There is hereby levied an annual permit fee of five hundred dollars
($500. 00) for each and every establishment engaged in storing, transporting and/or selling at
wholesale any spirituous or vinous (except wine) liquors within the City .
(2) Hours of Operation: It shall be unlawful for any person to sell, offer for sale,
or give away, at wholesale, any spirituous, vinous, or malt liquors before the hours of 6 :00 a.m.
and after the hour of 11 :00 p.m. on weekdays, 12 :00 midnight on Friday and Saturday, at any
hour on Sunday, on Christmas Day, or during any 24-hour interval designated an emergency
period by the Mayor, City Council, or any person acting in the Mayor' s or City Council ' s
capacity .
(A .C . A . §§ 3-4-605 & 3-7- 111)
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(B) WHOLESALE BEER AND LIGHT WINE PERMIT - Authorizes the purchase of
beer, light wine or malt liquor from a licensed manufacturer or importer and the sale of such
beverages to retailers holding a valid permit to sell beer, light wine or malt liquor for consumption
on or off the premises .
( 1) Permit Fee: There is hereby levied an annual permit fee of one hundred
twenty- five dollars ($125.00) for each and every wholesale dealer, broker or distributor of beer
and light wine. (Per A. C .A. § 3-5-101 - Beer wholesalers may also sell malt liquors to retailers . )
(2) Hours of Operation: The authorized hours of operation shall be the same as
for wholesale liquor dealers in 111 .20(A) .
(3) All wholesale dealers and distributors selling beer and light wine to retail
dealers within the City shall provide to the City ' s accounting division on or before June 30 of each
year a report of said distributor's total sales of beer and light wine for the previous calendar year
to each retailer within the City . No wholesale beer and light wine permit will be renewed until
such report has been received by the City .
(A . C .A . §3-5-205)
111 . 30 RETAIL:
(A) RETAIL LIQUOR OFF PREMISES PERMIT - Authorizes the purchase of spirituous
and vinous beverages from any person holding a valid wholesale liquor permit and the sale of such
beverages at retail to consumers for consumption off the premises ; any holder of a liquor off
premises permit may also purchase malt liquors containing more than five percent (5 %) alcohol
by weight from either persons holding a wholesale beer permit or a wholesale liquor permit, and
sell such beverages to consumers for consumption off the premises described in the permit.
It shall be unlawful for any person to accept retail orders for any spirituous , vinous, or
malt liquors for delivery outside of the premises of the store operated by such person.
(1) Permit Fee: There is hereby levied an annual permit fee of two hundred fifty
dollars ($250.00) for each and every retail liquor dealer engaged in the business of selling or
dispensing, at retail any vinous (except wine) , spirituous, or malt liquors for off premises
consumption.
(2) Hours of Operation: It shall be unlawful for any person to sell, offer for sale,
or give away, at retail , any controlled beverages for off premises consumption before the hour of
10:00 a.m. and after the hour of 11 :00 p .m. on weekdays, after the hour of 12:00 midnight on
Friday and Saturday, at any hour on Sunday, on Christmas Day , or during any 24-hour interval
designated an emergency period by the Mayor, City Council, or any person acting in the Mayor' s
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or the City Council ' s capacity .
(A . C.A . §§3-4-604 & 3-7-111 , fees; A.C.A . §3-3-210, prohibits Sunday sales and sales between
1 :00 a.m. and 7:00 a.m. weekdays; A . C. A . §3-3-211 , prohibits sales on Christmas Day)
(B) RETAIL BEER AND LIGHT WINE OFF PREMISES PERMIT - Authorizes the
purchase of beer, light wine, or malt liquor containing less than five percent (5 %) alcohol by
weight from wholesalers holding a valid permit and the sale of such controlled beverages for
consumption off the premises described in the permit.
( 1) Permit Fee: For the privilege of selling beer and light wine, at retail , for off
premises consumption, there is hereby levied an annual permit fee as follows :
(a) For a retailer whose annual gross sales of beer and/or light wine do not
exceed $ 1 ,000.00, the permit fee shall be fifteen dollars ($15 .00) .
(b) For a retailer whose annual gross sales of beer and/or light wine exceed
$1 ,000.00, the permit fee shall be fifteen dollars ($ 15 .00) plus one-half ( 1/2) cent for each dollar
of gross sales in excess of $ 1 ,000.00.
(c) The Permit fee for a new applicant with no sales history shall be forty
dollars ($40.00) .
(d) For the purpose of renewing an existing permit, annual sales shall be
the actual gross sales for the previous calendar year. If the permittee has not been in operation
for a full year at December 31 of the previous year, annual sales shall be determined by dividing
the total actual sales by the number of months of operation and multiplying the result by twelve.
(e) If a new permit was issued between January 1 and June 30, the first
renewal rate (due on June 30 of the issue year) shall be forty dollars ($40.00).
(2) Hours of Operation: It shall be unlawful for any person to serve, sell , offer
for sale, or give away beer or light wine at retail for off premises consumption before the hour f
10:00 a.m. and after the hour of 11 :00 p.m. on weekdays, after the hour of 12 :00 midnight on
Friday and Saturday , at any hour on Sunday , on Christmas Day, or during any 24-hour interval
designated an emergency period by the Mayor, City Council, or any person acting in the Mayor' s
or the City Council' s capacity .
(A .C .A . §3-5-212)
(C) RETAIL BEER AND LIGHT WINE ON PREMISES PERMIT - Authorizes the
purchase of beer, light wine, or malt liquor containing less than five percent (5 %) alcohol by
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weight from a wholesaler holding a valid permit and the sale of such controlled beverages for
consumption on or off the premises described in the permit.
( 1) Permit Fee: There is hereby levied an annual permit fee of the same amounts
and computed in the same manner as the annual fees for retail beer and light wine - off premises
in 111 . 30(B) above.
(2) Hours of Operation: It shall be unlawful for any person (except private clubs
and holders of on-premises consumption - hotel, motel or restaurant permits) to serve, sell, offer
for sale, or give away for consumption on premises any beer or light wine between the hours of
1 :00 a.m. and 7:00 a.m. on Monday through Saturday, on Sunday , on Christmas Day , or during
any 24-hour interval designated an emergency period by the Mayor, City Council, or any person
acting in the Mayor's or the City Council 's capacity .
(A .C . A . §3-5-212)
(D) PRIVATE CLUB PERMIT - Authorizes the purchase of any controlled beverages
from persons holding an off premises retail liquor or beer permit who have been designated by the
director of the State Alcoholic Beverage Control Board as a private club distributor, and authorizes
the dispensing of such beverages for consumption on the premises of the private club to members
and guests only of the private club. (private clubs holding a retail beer on premises permit may
purchase beer, light wine, or malt liquor containing not more than five percent (5 % ) alcohol by
weight from holders of valid wholesale beer permits) .
( 1) Permit Fee: For the privilege of operating a private club within the City, there
is hereby levied an annual permit fee of two hundred fifty dollars ($250.00) . For any new private
club permit issued between January 1 and July 1 , the fee shall be one hundred and twenty-five
dollars ($ 125 .00). (A .C .A . §§ 3-9-222 & 3-9-223)
(2) Supplemental Beverage Tax: In addition to the $250.00 per year permit fee,
there is hereby imposed and levied a city supplemental tax of 5 % upon the annual gross receipts
which are derived by such private club from charges to the members and/or their guests for the
following services :
For the preparation and serving of mixed drinks, and
For the cooling and serving of beer, light wine, and wine .
The city supplemental beverage tax is in addition to the state supplemental tax on private
clubs and shall be paid to the appropriate city official, shall be due monthly at the same time that
the state supplemental tax is due, and shall be accompanied by one copy of the state supplemental
tax return. If any permittee shall fail to remit the supplemental tax within the time period that the
state tax is due, a penalty of 12 1/2 % of the tax due shall be due and payable in addition to the tax.
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