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4. rl <br /> 620 SE EVERETT MALL WAY EVERETT, WA 98208 425-212-2260 <br /> • <br /> Proposed Change to the City of Everett's Current Gambling Tax <br /> We would like to propose that the way to figure the gambling tax be modified from a flat rate of <br /> 10% on all Gross Gaming Revenue to one that would still be 10% only it would be calculated on <br /> an Adjusted Gaming Revenue. <br /> We propose to deduct all wages and the taxes associated with their employment for all <br /> employees that are directly involved in the operation of the casino. We would further propose <br /> that a limit of$100,000 be placed on an individual's wage rate that can be deducted from the <br /> gaming revenue for calculating the Adjusted Gaming Revenue. <br /> As an example we have calculated the wages and taxes paid for our casino employees for the <br /> past year and then divided that amount by 12 to come up with an average months employment <br /> cost. Please note we did not include any of our other employees that are employed by our <br /> company that are not directly involved in the operation of the Casino such as our kitchen staff <br /> and food servers with equal approximately 25% of our total staff <br /> Example 1 <br /> Average Gross Monthly Revenue for Casino and Poker Room $198,634.15 <br /> Average Monthly Employment Cost for Casino Classified Workers $134,560.37 <br /> Adjusted Gross Gaming Revenue to be taxed at 10% $ 64,073.78 <br /> Total Gambling Tax owed to City of Everett for an Average Month $ 6,407.38 <br /> One of the by-products of this type of calculation on the tax is that an increase in revenue will <br /> not necessarily mean an exponential increase in employee cost. Our staffing levels for the casino <br /> operations are currently at approximately 75%. An increase in revenue of 50%would only <br /> require at most an increase of staffing levels of approximately 25%. <br /> Example 2 <br /> Average Gross Monthly Revenue for Casino and Poker Room+50% $297,951.23 <br /> Average Monthly Employment Cost for Casino Classified Workers+25% $168,200.46 <br /> Adjusted Gross Gaming Revenue to be taxed at 10% $129,750.76 <br /> Total Gambling Tax owed to City of Everett for an Average Month $ 12,975.08 <br /> As you can see by the above example, a 50% increase in business would mean that the amount of <br /> tax paid to the City of Everett would be 202.5% of that Haid in example 1. <br />