HomeMy WebLinkAboutOrdinance 31-2000 ORDINANCE NO. 31-00
AN ORDINANCE ESTABLISHING ANNUAL LICENSE FEES FOR VIDEO
LOTTERY MACHINES IN THE CITY OF BROOKINGS, SOUTH DAKOTA.
BE IT ORDAINED AND ENACTED BY THE COUNCIL OF THE CITY OF
BROOKINGS, STATE OF SOUTH DAKOTA, AS FOLLOWS:
I.
Video lottery machine license fees.
There is hereby imposed on any person who is licensed pursuant to subdivisions 4, 12, or
16 of SDCL 35-4-2 and who is issued a video lottery establishment license pursuant to SDCL
42-7A-41 an annual license fee for the privilege of locating video lottery machines on the
licensed premises. The fee for each video lottery machine is $50.00 per year, and shall be
payable at the same time as the alcoholic beverage license fees.
II.
Any or all ordinances in conflict herewith are hereby repealed.
FIRST READING: December 11, 2000
SECOND READING: December 18, 2000
PUBLISHED: December 22, 2000
CITY OF BROOKINGS, SOUTH DAKOTA
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• City Manager Report—Item #8
8. Second reading of Ordinance No. 31-00, an Ordinance establishing annual licenses fees for
video lottery machines in the City of Brookings, South Dakota. There are two changes to this
ordinance since the first reading. One, the $50 fee is payable at the same time as the alcoholic
beverage fees are paid. Two,the effective date has been removed because the effective date will be
20 days after adoption. There was discussion of prorating the fee if a video lottery unit was put in
place for a partial year. The fee is collected with the liquor license fee and liquor license fees cannot
be prorated. I suggest that we mirror the process for liquor licenses and not prorate.
Earlier this year, the City Clerk's Office surveyed all first class municipalities in South Dakota to
compare types of licensing fees including video lottery machine fees. State law permits cities to
charge establishments with video lottery an annual fee of$50 for each video lottery machine. The
survey found that ten of the thirteen cities charge the $50 video lottery machine fee, one charges$10,
and Brookings and Huron don't charge anything.
Based on the current number of licensed sites, this could generate up to $8,500 per year if all sites had
the maximum allowed 10 machines. There are currently 17 sites with a total of 129 machines
($6,450).
Options:
1. Take no action;continue without the fee until decisions are made on the regulations of
• video lottery in general.
2. Establish a fee less than the $50.
3. Establish a fee and if prorating is desired, instruct the manager to prorate the fee.
4. Approve the ordinance and assess the fee.
City Manager Recommendation: Approve the Ordinance as presented.
Action: Motion to approve second reading and adopt the ordinance—Roll Call.
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