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CR 98-48 Revocation of Wine & Strong Beer License 98027 Issued to Sam Cheung Lau DBA Jack Yee's RestaurantMarch 13, 1998 Overview Council Report 98 -048 REVOCATION OF WINE AND STRONG BEER LICENSE 98027 ISSUED TO SAM CHEUNG LAU DBA JACK YEE'S RESTAURANT Staff recommends approval of the following motion: Move to revoke City of Hopkins license 98027, issued to Sam Cheuno Lau d.b.a., Jack Yee's Restaurant on April 2, 1998, unless a certificate of clearance is received from the Minnesota Department of Revenue before that date. Minnesota Statutes provide that the state or a political subdivision of the state may not issue, transfer, or renew, and must revoke, a license for the conduct of a profession, occupation, trade, or business, if the commissioner notifies the licensing authority that the applicant owes the state delinquent taxes, penalties, or interest. The City of Hopkins has been notified by the Minnesota Department of Revenue to revoke the above - mentioned license. Mr. Lau was notified by letter, mailed on March 6, 1998, that this action would be heard by the City Council. Primary Issues to Consider • Can the City choose not to revoke the license? • Will the licensee be required to re- license after a clearance certificate is received? Supporting Documents • Notice of License Revocation from the Minnesota Department of Revenue • Letter from the Assistant Commissioner for Tax Policy, Minnesota Department of Revenue • A copy of the letter that was mailed to Mr. Lau, notifying him of this action fjd Terry Oirrmaier, City Clerk Council Report Page 2 Primary Issues to Consider Alternatives • • Can the City choose not to revoke the license? The answer is no. A licensing authority that has received a notice from the commissioner may issue, transfer, renew, or not revoke the applicants license only if (a) the commissioner issues a tax clearance certificate and (b) the commissioner or the applicant forwards a copy of the clearance to the authority. • Will the licensee be required to re- license after a clearance certificate is received? No. The license may be re- instated at that time. This action is like a suspension in that the licensee will not be required to re -apply or pay additional fees for the re- instatement of the license. 1. Revoke the license as defined by Minnesota Statutes 2. Do not revoke the license 3. Continue for more information Staff recommends alternative one. MINNESOTA Department of Revenue Department of Revenue Revenue Notice # 96 -01 Collections; Revocation of Licenses; Definition DEPARTMENT OF REVENUE Revenue Notice #96 -1: Collections; Revocation of Licenses; Definition Minnesota Statutes, Section 270.72, subd. 1, states; TAX CLEARANCE REQUIRED. The state or a political subdivision of the state may not issue, transfer, or renew, and must revoke, a license for the conduct of a profession, occupation, trade, or business, if the commissioner notifies the licensing authority that the applicant owes the state delinquent taxes, penalties, or interest. [Emphasis Added]. Additionally, Minnesota Statutes, Section 270.72, subd. 1, states; A licensing authority that has received a notice from the commissioner may issue, transfer, renew, or not revoke the applicants license only if (a) the commissioner issues a tax clearance certificate and (b) the commissioner or the applicant forwards a copy of the clearance to the authority. [Emphasis Added]. The term revoke, generally implies that the license has been terminated in such a way that the licensee may not be reinstated, or may be reinstated only after a period of time. For purposes of Minn. Stat. § 270.72, the Department of Revenue deems the term revoke to mean that the taxpayers license will be suspended until the tax obligation has been satisfied and the tax clearance certificate has been issued. This means that the taxpayers license is not terminated indefinitely, and that once certain conditions have been met, the licensee will not be required to repeat the licensing procedure in order to have his or her Iicense reinstated. Dated: March 18, 1996 Patricia Lien Assistant Commissioner for Tax Policy Dated : March 18, 1996 An equal opportunity employer TDD: (612) 297 - 2196 MINNESOTA Department of Revenue Notic of Lic ns Revocation March 3, 1998 City Of Hopkins 1010 1st St Hopkins, MN 55343 -7573 The following taxpayer has an overdue liability: Taxpayer name: LAU SAM CHEUNG Tax ID number: 3786898 Under Minnesota law, you must revoke the following license by April 2, 1998. License holder: Sam Cheung Lau JACK YEE'S RESTAURANT License renew date: 12/31/98 License name: Wine & Strong Beer - City License number: 0961 Once the delinquency has been resolved, we will send you a clearance certificate. If you have any questions, please call (612) 296 -1980 or (612) 297 -4055. Contact: Collection Enforcement PO Box 64447 Saint Paul, MN 55164 -0447 This notice sent in accordance with MS 270.72. An equal opportunity employer nevomu STATE OF MINNESOTA Commissioner of Revenue by: PO40 RGottelet2 Fee yet TDD: (612) 297 -2196 0000090601 March 6, 1998 Lau Sam Cheung 5120 Trails End Circle Minnetrista MN 55364 Dear Mr. Cheung, The City has been ordered by the State of Minnesota Department of Revenue to revoke the wine and beer licenses that have been issued to you. A copy of the order is enclosed. This item will be heard by the City Council on March 17, 1998. Although the City Council will be asked to act on this matter, State Statute provides only for revocation. The City Council will have little or no choice, but to revoke the licenses by April 2, 1998, unless the Department of Revenue issues a tax clearance certificate and one is given to the City of Hopkins. If you have any questions, please call me at 939 -1330. Sincerely, Terry Obermaier City Clerk