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HomeMy WebLinkAboutCity Council Committees - Operations - 09/02/1997 OPERATIONS COMMITTEE MINUTES September 2, 1997 COMMITTEE MEMBERS PRESENT: Jim Bennett, Acting Chair, Leona Orr, Tim Clark STAFF PRESENT Brent McFall, May Miller, Laurie Evezich, Jan Banister The meeting was called to order by Jim Bennett at 5.35 p.m. Approval of 8/29/97 Vouchers Committeemember Orr moved to approve the vouchers of August 29, 1997. Johnson seconded and the motion carried with a unanimous vote, 3-0. Ordinance Amending the City Code on Gambling Taxation Chief of Operations Brent McFall reported that the City was approached by members of the gambling industry asking Council to implement changes in Kent's gambling tax code. State law was changed in last session that has provided a mandatory change in the way non-profit gambling operations are taxed and extended this change to for-profit organizations only upon specific action of City Council. Gambling operators request that Council amend City's code to provide to them the same provision that is automatically extended to non-profit operators McFall added that City has to amend the code anyway since State law has been amended to make the provision changing the taxation method for non-profit operators. A draft copy of the ordinance was given to each attendee. McFall stated that a few changes had been made since the packet contents were assembled. These changes are more procedural than substantial. Laurie Evezich,Assistant City Attorney,explained that the State legislature made amendments since State has broadened its gambling activities within the State over the years. The State wants to level the playing field for non-profit and charitable organizations so they wanted to extend the same benefit to commercial operators. The City's code isn't consistent with the limitations found on gambling tax code since it's an older tax provision Now is the time to amend City's code since it's more aligned with law as it was 10-12 years ago. It's now appropriate to make enforcement provisions and some of the procedural reporting and auditing provisions consistent with those practices of other jurisdictions and the State and how the reporting is made to the State gambling commission. Definition section added: 3.21.010(b) Purpose same as State's. Finance/Customer Services Division administers the paperwork of gambling licensees Kent's Police Department found it had limited ability to collect. Auditing will be accomplished. 3.21.040 - 043: Added additional reporting requirements. Credit card payments are allowed. 050. Added detailed record keeping requirements that they must follow consistent with guidelines This will address some of the collection problems of the past. 1 Evezich stated City had asked for permission to unite gambling tax code w/business license provisions and wanted a business license in Kent a condition precedent to State issuing a state gambling tax license. Can't be done since WA state is the license provider. In order to get Class A or Class H or incorporated as non-profit or charitable organizations need business licenses from City City requires licensees be operating legally as far as state and local ordinances Orr moved the amendment of the code, Clark seconded, and the motion carried with a unanimous vote, 3-0. There being no further business, the meeting was adjourned at 5.44 p.m 2