HomeMy WebLinkAbout3460Ordinance No. 3460
(Amending or Repealing Ordinances)
CFN=175 — Business License
Passed 6/1/1999
Relating to gambling; amending Chapter 3.21; terminating the moratorium
established in Res. 1525 and 1526; and further reducing the tax for bingo
games and raffles
Amends Ords. 1888;2050;2034;3362;3949
ORDINANCE NO. 3 �4 6 D
AN ORDINANCE of the City Council of the City
of Kent, Washington, relating to gambling; amending
Chapter 3.21 of the Kent City Code prohibiting social card
games conducted as a commercial stimulant; terminating the
moratorium established in Resolutions 1525 and 1526; and
further reducing the tax for bingo games and raffles pursuant
to SSB 5745 recently passed by the Washington State
legislature.
WHEREAS, as a result of 1997 legislation by the Washington State
legislature amending the State's 1973 Gambling Act, food or drink establishments
conducting social card games as a commercial stimulant have established enhanced card
rooms resulting in gambling facilities that are different from earlier social card rooms
which typically were ancillary uses to other primary uses such as restaurants; and
WHEREAS, a number of these establishments, also known as mini
casinos, have opened in the South King County Region; and
WHEREAS, the City Council enacted a moratorium effective February 2,
1999 on the acceptance of applications for and the issuance of any license, permit, or
approval for food or drink establishments conducting social card games as a commercial
stimulant, to allow the City to study their impacts in the community; and
WHEREAS, since implementing this moratorium, the City Council has
had the opportunity to study and review the following reports and research:
Gambling
1. The House Never Loses and Maryland Cannot Win: Why Casino Gaming is a Bad I
Idea, J. Joseph Curran, Jr., October 16, 1995
2. Gambling in California, Roger Dunstan, January 1997
3. Gambling Impact and Behavior Study, Final Report to National Gambling Impact
Study Commission, March 18, 1999
4. CitizenLink - Public Policy Research, (various); and
WHEREAS, that allowing establishments conducting social card games
as a commercial stimulant in a city that is concerned about its image and trying to attract
residences, businesses, and investors to the City, as well as the City's investment in major
capital program projects into the City to attract these residences and businesses, is not in
the City's best interest; and
WHEREAS, private investment needed for the City's planned
development cannot occur if establishments conducting social card games as a
commercial stimulant develop in the area; and
WHEREAS, prohibiting social card games conducted as a commercial
stimulant as an exercise of the Council's police powers and pursuant to legislative
authority is in the best interest of the general health, safety, and welfare of the citizens of
the City; and
WHEREAS, the council believes it is inappropriate to prohibit existing
establishments conducting social card games as a commercial stimulant immediately
without giving the owners of such licensed gambling establishments a reasonable time to
make plans for alternative uses of their property; and
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WHEREAS, allowing present licensees to remain in operation for a
limited time would give such licensees a reasonable time to phase out card rooms and
make plans to convert their properties to other uses; and
WHEREAS, RCW 9.46.295 authorizes municipalities to prohibit certain
gambling activities otherwise authorized under Chapter 9.46 RCW; and
WHEREAS, the City Council deems it to be in the public interest and I
welfare to prohibit social card games conducted as a commercial stimulant as defined in
RCW 9.46.0282; and
WHEREAS, the Washington State legislature passed SSB 5745 during the
1999 legislative session reducing the maximum gambling tax for bingo games and raffles
from 10% to 5% effective January 1, 2000;. therefore, the council finds it appropriate to
amend the City's gambling tax code to reflect this change, and minor language changes
consistent with state law, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 3.21 of the Kent City Code entitled "Gambling
Tax" is hereby amended by amending Section 3.21.010 as follows:
Sec. 3.21.010. Gambling_ activities and tax. Tam -imposed:
A. Tax imposed. In accordance with RCW 9-46 019- tat secl• 9.46.110, there is levied
a tax upon all persons, associations, and organizations who have been duly licensed by
the Washington State Gambling Commission to conduct or
operate certain gambling activities as follows:
1. Affy-Until Januar 1, 2000, taxation of bingo games and raffles; at a tax
rate of ten (10) percent of the gross receipts received therefrom less the amount
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awarded paid fe as cash or merchandise prizes_ ,
Effective January 1 2000 taxation of bingo games and raffles at a
rate of five (5) percent of the gross receipts received therefrom less the amount awarded
as cash or merchandise prizes;
2. Taxation of -amusement games, at a tax rate of im-a e s eie
.;
two (2) percent of the gross receipts Fevenue from
any such amusement games less the amount awarded as prizes, which is an amount less
than the actual amount of costs of enforcement by the City of the provisions of Ch. 9.46
RCW;
3. Taxation of pumh13eafls punch boards and Aspull -tabs for bona fide
charitable or nonprofit organizations and for commercial stimulant operators at a tax rate
of ten (10) percent io-based on the gross receipts from the operation -of the games less the
amount awarded as cash or merchandise prizes and shall nat o meed " rato e f to ( "
UTIOM
4. Taxation of social card games not prohibited by subsection (D) below at
based -open a tax rate of ten (10) percent of the gross revenue from such games-Fese}4s
B. Definitions. For the purposes of this chapter, the words and terms used herein shall
have the same meaning given to each pursuant to RCW Chapter 9.46, as same exist or
may from time to time be amended; and as set forth under the rules of the Washington
State Gambling Commission, Chapter 230, Washington Administrative Code, as the same
exists or may hereafter be amended, unless otherwise specifically provided herein.
C. Exemption from tax. No tax shall be imposed under the authority of this chapter
on bingo, raffles, or amusement games when such activities or any combination thereof
are conducted by any bona fide charitable or nonprofit organization as defined in Ch. 9.46
RCW, which organization has no paid operating or management personnel and has gross
receipts from bingo, raffles or amusement games, or any combination thereof, not
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exceeding five thousand dollars ($5,000.00) per year less the amount awarded as cash or
merchandise prizes.
D. Social card games - Prohibited - Exceptions. Pursuant to RCW 9.46.295 and to
the City's police j2ower and legislative authority, the operation or conduct of social card
games by anyperson, association, or organization as a commercial stimulant, as defined
in Chapter 9.46 RCW is prohibited within the City of Kent; provided, that those
establishments licensed by the Washington State Gambling Commission, lawfully
operating in the City of Kent and in compliance with the provisions of this chapter as of
February 2 1999 may continue to operate social card games as a commercial stimulant
under said license until March 1, 2004 after which date no such establishment may
lawfully operate in the City of Kent; and further provided, that bona fide charitable or
nonprofit organizations, as defined in Chapter 9.46 RCW, may operate or conduct social
card games if said social card games have been duly licensed by the Washington State
Gambling Commission and if they are otherwise operated or conducted in compliance
with the provisions of this chapter. A violation of this section shall not be subject to
Section 1.01.140 of the Kent Cites
SECTION 2. Termination of Moratorium. The moratorium on the
acceptance of applications for and the issuance of any license, permit, or approval for
food or drink establishments conducting commercial stimulant card games set forth in
Resolution Nos. 1525 and 1526 shall terminate on the effective date of this ordinance
SECTION3. Severability. If any one or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall
not affect the validity of the remaining portion of this Ordinance and the same shall
remain in full force and effect.
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SECTION 4. Effective Date. This Ordinance shall take effect and be in
force thirty (30) days from and after the date of passage and publication as provided by
law.
ATTEST:
�1-n, t�
..
APPROVED AS TO FORM:
I
- ROGER A. LUBOVICH, CITY ATTORNEY
PASSED: day of Lrc. '1999.
APPROVED:_ day of , 1999.
PUBLISHED: day of 11999.
I hereby certify that this is a true copy of Ordinance No.. 3860, passed
by the City Council of the City of Kent, Washington, and approved by the Mayor of the
City of Kent as hereon indicated.
V
c ,CITY CLERK,
P.\Civil\Grdmance\gambling.doc �l oA)A-) LdA t,% ?EFU7V
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