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Marshall holds off on liquor license fees for 2nd half of 2020

MARSHALL — Businesses like bars and restaurants have been among those affected by state closure orders meant to slow the spread of COVID-19. The impact has been big enough that local businesses have voiced concerns about being able to pay liquor license fees, Marshall city staff said.

With the future uncertain of when bars and restaurants will be open again, members of the Marshall City Council stepped in to try and help. At Tuesday’s council meeting, council members opted to hold off on collecting on-sale liquor license fees due for the second half of 2020, as well as prorating the license fees.

In 2020, the city of Marshall issued a total of 31 on-sale licenses — 14 intoxicating liquor licenses, 13 Sunday liquor licenses and four combination wine/malt liquor licenses. An on-sale intoxicating liquor license has a $3,000 annual fee, said Marshall City Clerk Kyle Box. Sunday on-sale licenses are $200 a year, and wine/malt liquor licenses are $850 a year.

The majority of Marshall license holders pay their fees in one payment, but others take the option of making two payments a year, Box said. Payments for the second half of the year are due June 1. But the COVID-19 pandemic has thrown things into question.

While some Marshall businesses are able to sell takeout food, beer and wine, it’s not the same as being open for normal business. Box said some liquor license holders have approached the city about their second-half payments.

“They’re a little worried about making the payment on time,” he said.

Council member Craig Schafer said he thought for now, the city should put a moratorium on collecting the payments for the second half of the year. In addition, the city could possibly have a prorated credit on the license fees, he said.

Council members agreed with Schafer’s suggestion, although they did have some discussion as to whether to prorate the fees at a weekly rate, or another rate. Council member James Lozinski said the fees should be prorated daily, while council member Russ Labat wondered if it would be easier for the city to calculate it monthly instead.

“We would have no issues doing it by day,” said Marshall City Administrator Sharon Hanson.

The council voted not to collect the second-half liquor license fees until they know the end date of the orders closing bars and restaurants, and to prorate the second-half fees on a daily basis.

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