Council discusses taxes, licenses

Published 12:48 am Saturday, August 23, 2014

Debates over liquor and taxes took center stage Thursday during Selma City Council’s work session.

The council discussed different policy options relating to the city’s liquor license moratorium and agreed not to make changes to the city’s lodging tax, which divided between the Selma-Dallas County YMCA and the former Brown YMCA.

Discussion about the city’s liquor license policies began when city attorney Jimmy Nunn presented a resolution that would require applicants to be current on back taxes before the city votes to grant a liquor license.

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“It would just make sure that all their taxes are taken care of before we approve any alcoholic beverage license application,” Nunn said.

He also presented a resolution that would extend the city’s current liquor license moratorium, which expires Sept. 11. If approved, the city’s extension would begin Sept. 12 and expire on March 12, 2015.

The council Thursday briefly considered adding an exception to the moratorium that would allow licensed businesses to change locations. City tax collector Kim Lewis specifically referred to the Waterfront Lounge when asking.

The Waterfront Lounge closed it’s Water Avenue location recently and moved to another location in Ward 8 under a different name. Because Waterfront Lounge owners didn’t technically follow license transfer laws, Lewis said the store had closed and was preparing to apply for a transfer.

Under the city’s current moratorium, Waterfront could not open a business at its new location and Ward 1 councilman Cecil Williamson said he preferred to not make any exceptions.

Though the council is already considering regulations to ensure taxes are paid, Williamson said it wouldn’t detract from any potential future changes that might come following an extension of the moratorium.

“We are actually trying to control the number of stores and the location of the establishments near schools, churches and in residential areas,” Williamson said after the meeting. “I think they should all be in one district.”

He said the ultimate goal would be coming up with a distance ordinance in addition to ensuring all licensed liquor establishments pay back taxes.

Nunn also asked the council if it would consider making exceptions to the city’s $2 dollar hotel occupancy fee — 75 percent of which helps fund the Selma-Dallas County YMCA and 25 percent is dedicated to the former Brown YMCA.

Nunn said state law allows exceptions to hotel occupancy taxes for movie productions, the military and stays that are 180 consecutive days.

“There are no exemptions to the current $2 occupancy fee,” he said. “The question is whether or not we want to include these three exemptions.”

Ward 2 Councilwoman Susan Keith, whose ward includes the Selma-Dallas County YMCA, said she preferred to leave the fee as is because it isn’t technically a tax.

“It’s not just merely a tax,” Keith said. “They are able to use the YMCA by paying the fee. It is payment for something rendered.”

While discussing the YMCA, the council also began talking about how to spend accrued money from the tax that was dedicated to the Brown YMCA.

Selma Mayor George Evans said renovating the Brown YMCA is estimated to cost more than $200,000. Figures about how much money had accrued as a result of the tax were not immediately available.

Ward 6 councilman B.L. Tucker said plans for the Brown YMCA had always include a boys and girls club.

The council delegated the future plans for the Brown YMCA to its administrative committee for consideration.

In the interim, Ward 8 councilman Michael Johnson said the council should ensure the stability and quality of the building.

“We went inside of it not too long ago and it’s horrible,” Johnson said. “We need to at least clean it out and secure the roof so it doesn’t get any worse.”