04-23-2014 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL APRIL 23, 2014 lounge, and these individuals are told that sampling is not allowed in the City. The request then changes to a request for a tobacco store. Blesener noted the efforts that the State Legislature is making relative to e- cigarettes and that the City Code was amended to address delivery devices. The Administrator indicated that the City Attorney did present a Tobacco Ordinance amendment addressing delivery devices, which was adopted by the Council. Blesener asked the City Planner for his comments. The City Planner indicated that some of the cities he has worked with have addressed the issue of sampling. Keis noted that the current ordinance prohibits sampling. I Ie indicated that the issue was the likelihood of a head shop locating in the City. The City Administrator indicated that he was recently at a gas station /convenience store in another city that had paraphernalia on display that could be used for other purposes than the smoking of tobacco. McGraw noted that the State is struggling with the e- cigarette and delivery system issue. He indicated that he would rather be proactive on this issue and limit the number of tobacco store licenses and prevent a head shop from locating in the City. Keis stated that he was torn on the issue. Blesener suggested that City staff put together a proposed ordinance amendment limiting tobacco store licenses to two and lifting the limitation on the number of general tobacco licenses. That proposed amendment should be presented to the full Council at their next meeting. The City Administrator indicated that he would also ask the City Attorney for his comments on the proposed amendment. DEPARTMENT The City Administrator reported that the Department of Revenue OF REVENUE contacted the City last year to review its organized collection program APPEAL relative to the payment of taxes. The Administrator indicated that under the Organized Collection Contract, the haulers are responsible for remitting taxes while the City bills residents for organized collection services. The Administrator noted that the haulers are current on those tax payments. The Administrator reported that there is a State Statute that says whoever bills for services must remit the taxes. The Administrator indicated that the issue is complicated further in that recycling services is exempt from sales tax, but the City's invoices do not break out recycling as a separate line item. Because of this, it is the Department of Revenue's position that sales tax is owed on the recycling charges. The Administrator indicated that the Department of Revenue is saying that the 10