Kerley seeks to discuss inspection fees charged to local liquor stores.

Councilman Jesse Kerley has asked that discussion of the city's liquor inspection fee be on the May 12 council meeting agenda.

Crossville's liquor stores first opened in 2009 and, in addition to sales tax on the retail sales of liquor, the city receives an 8 percent “inspection fee” on the wholesale value of liquor purchased by all Crossville liquor stores.

The maximum amount of the inspection fee is 8 percent, but the council can reduce the amount if they vote to do so. Once the county population reaches 60,000, the maximum amount of the fee drops to 5 percent. In 2010, the US Census put the Cumberland County population at 56,053.

When the liquor stores first opened, the owners requested that the city reduce the inspection fee from 8 to 5 percent as a way for them to be more competitive with other areas that changed less, allowing stores in Harriman and Knoxville to charge lower prices for their wares.

In August 2009, then councilman Boyd Wyatt said that he didn't think an extra $2 or $3 on a bottle of liquor would hardly make it worth driving out of town over, but Roger York of Peavine Wine and Spirits countered that when someone buys 36 to 48 bottles the difference can pay for both the tank of gas and dinner while in Knoxville.

Liquor store operators returned to the council in January of 2010 again seeking relief on the fee. At that meeting, councilman Kerley moved to reduce the fee to 5 percent but did not receive a second on his motion.

Information provided with this month's agenda indicate the drop in revenue to the city would be $162,700. The increase in sales needed to offset the loss would mean an additional $3.3 million in wholesale product would need to be sold.