Local Licensing Authority Minutes 2001 05 14

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Louisville Local Licensing Authority Meeting Date: May 14, 2001 4 the affidavit which stated, "The sales tax payment history of Hickory Sticks over the past sixteen months reflects chronic late payments and an unusual number of "short check" payments, which means that payment on the check when deposited by the State was refused due either to insufficient funds or a stop payment order from the maker of the check. Short checks are submitted for payment by the State twice, and payment is declined twice, before they are labeled by the State as "short" checks." Deputy City Clerk Bolte asked Ms. Ray to raise her right hand and proceeded with the oath, "do you solemnly swear or affirm under penalty of perjury that the testimony you are about to give will be the truth, the whole truth, and nothing but the truth." Ms. Ray: yes. Ms. Ray stated her name, that she has been employed by the City of Louisville for six years, and that she is the Director of Finance and Administrative Services. Attorney Barnett asked Ms. Ray if she had experience dealing with sales tax reporting information and what types of information she receives from the Department of Revenue. Ms. Ray stated that she receives a monthly report from the state that indicates sales tax payments for each vendor. After analyzing the report, Ms. Ray stated that she follows up with the state on any discrepancies. Barnett showed Ms. Ray a document that summarized the sales tax payment activity for Hickory Sticks since the inception of their liquor license, and asked her if she recognized the document. Ms. Ray stated she did. Attorney Barnett asked Ms. Ray to explain the summary to the Authority. Ms. Ray stated that the first column on the summary reflects the date on the report received from the Department of Revenue. The second column itemizes the payment received, and indicates the amount of sales tax paid and for what month. Ms. Ray stated that her summary on Hickory Sticks shows that on the November 2000 report received from the Department of Revenue, payment was received for May, July, August and September, and two payments for June. Ms. Ray stated that, because of the City's agreement with the state regarding confidentiality of sales tax returns, dollar amounts can not be disclosed. Therefore, the right hand column is an explanation column with some lines marked "(1)," indicating a small payment, which would not be enough funds to be a full payment. She assumed that these smaller payments were for penalties or interest. Ms. Ray stated the Department of Revenue does not directly provide her with an explanation for these small payments. Ms. Ray continued that if the explanation column is blank, for example the month of June, it means a full payment was received for that month. For July, the explanation states that the check was reversed out on the December 2000 report. Ms. Ray stated that if the Authority referred to the line for July 2000, the explanation states "short check." Attorney Barnett asked Ms. Ray to describe the summary contained at the bottom of the page. Ms. Ray stated that, although she has received the April 2001 report from the state, the information agreed to at the last Authority meeting only addressed outstanding items as of March 2001. Ms. Ray stated that, as of March 2001, the outstanding items are September 2000 and January 2001 due to short checks, and December 2000, which was not filed at all. Ms. Ray concluded stating that since November 2000, the state reports have indicated a total of five "short checks" on this account. 4 \\FRED\VARRAN \LIQUOR\2001 \MIN UTES\M1NUTES051401.DOC