Ordinance 2265-98 - Laserfiche WebLink

• r , . ORDINANCE NO. 2265-98 AN ORDINANCE creating a one-year trial period for revising the method o taxation of punch boards and pull-tab activity at commercial establishments within the City of Everett, and superseding and repealing Section 1, Ordinance No. 2264-98 in accordance with Sections 1 and 5 herein. WHEREAS, Everett-based members of the Washington State gaming industry, as represented by the Washington Licensed Beverage Association(WLBA), have sought for several years to revise the method of taxation on commercial establishment punch boards and pull-tabs, from the current taxation on gross receipts to a taxation on gross receipts minus cash or merchandise prize payouts; and WHEREAS,this request from commercial establishments is in addition to approval during the 1997 session of the Washington State Legislature of Chapter 394 (Senate Bill 5034), which mandates the establishment of a new method of taxation for "bona fide charitable or non-profit organizations," specifically involving a change in tax collection from a maximum 5 percent on punch board and pull-tab gross receipts to a maximum 10 percent of gross receipts less the amount awarded as cash or merchandise prizes; and WHEREAS, in the case of commercial establishments, Chapter 394 provides local communities the option of restructuring taxes on punch boards and pull-tabs at commercial establishments, from a maximum authorized 5 percent on gross receipts to a maximum 10 percent on gross receipts minus cash or merchandise prize payouts; and WHEREAS, in the months since the passage and certification of Chapter 394, owners of commercial gaming establishments in Everett have again approached the Everett City Council,regarding a revision of their punch board and pull-tab taxes; and WHEREAS, the City Council and Mayor of Everett have expressed a willingness to consider a revision in the method of taxing punch boards and pull-tab activity at commercial establishments, so long as this revision is accomplished in a manner that will result in a"revenue-neutral" outcome for City punch board and pull-tab tax revenue collections; and WHEREAS, the City of Everett has provided for an 11.1 percent reduction in punch board and pull-tab taxes in 1998, from the current 4.5 percent to 4 percent -- due to favorable economic conditions and management of the tax proceeds from a $30 million capital improvements program (Ordinance No. 1420-87) that was financed partly through a .5 percent addition to the base 4 percent taxation on gross receipts of punch boards and pull-tabs; and WHEREAS,the Everett Budget Department projects that continued growth in punch board and pull-tab activity at commercial establishments would result in revenues of