The Alcoholic Beverage Control board approved the transfer of a liquor license for the 410 Lounge from Interim Police Chief Lloyd Franklin Jr. to another person, but before the transfer can take effect, the lounge has to pay its back sales tax to the state, according to a state official.
Franklin had applied for a transfer of the liquor license at the behest of Mayor Shirley Washington, who said she did not think the chief of police should hold a liquor license for a club in Pine Bluff. The paperwork for the transfer to move the license into the name of Michael Lee Curry of White Hall was filed with the state toward the end of September and early October and came before the Alcoholic Beverage Control board at its Wednesday meeting.
The director of the agency, Doralee Chandler, recommended the transfer but with a condition regarding the back taxes, according to Scott Hardin, a spokesman for the Alcoholic Beverage Control.
"The application itself was approved," Hardin said. "However, the name on the permit will not change until the company is in full compliance with state sales tax."
Hardin said he could not discuss the particulars of the case, citing state law.
"While we can share that the change was granted with conditions, we are prohibited from sharing any specifics regarding the amount owed or any details specific to the taxpayer," Hardin said. "The Tax Procedure Act provides confidentiality for every taxpayer, individual or corporate."
The only scenario in which his office would be able to discuss the matter in more detail would be if the Department of Finance and Administration files a lien against the business or the people in charge of the business. The Alcoholic Beverage Control operates as a division within the Department of Finance and Administration. Hardin said the department had not filed a lien against the 410 Lounge or any of the principles.
Franklin, who declined on Thursday to discuss the board's action, is one of the owners of the lounge, located at 303 W. 31st Ave. Complaints about crowds of people at the club and too many cars in the area had prompted state officials to come to Pine Bluff in early September to talk to Franklin and Washington about the matter.
After that meeting, Washington and Franklin said they were going to work on better ways for customers and traffic to be handled, but it was also then that the mayor said she told Franklin to have the liquor license transferred out of his name. Franklin has said that his daughter manages the lounge, which serves food and drinks, has dancing and hosts events, according to paperwork filed with the Alcoholic Beverage Control.
There are also two other liens that have been filed against the 410 Lounge for failure to pay its Advertising and Promotion tax.
According to public records, the A&P Commission filed a lien in August for March and April for $18.40. Antoher lien was filed in September for May and June for $41.80.
The A&P Commission typically files such liens when a business fails to send in its gross receipts figures each month, causing the commission to estimate what is owed and to file a lien against the business for that amount.
The commission charges a 2% tax on prepared food. If the tax isn't paid, it can move to have a business' license to operate in the city revoked.
Hardin said the lounge's sales tax status in Pine Bluff did not have a bearing on the removal of the conditional requirement put in place by the Alcoholic Beverage Control board.
"Overall, the 410 Lounge's change of manager [meaning the name on the permit] will be made official when the company is in full compliance with sales tax owed," Hardin said.