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<br /> , . <br /> . Arden Hills Council ".,. :392 <br /> - ~'),G 'I - - <br /> Post said his conce:rTi 1S that .\-1-'i=> maJorIty of ;.. =-- ce~-l~,;:;es 3.1:-'::: <br /> 1....__. <br /> including taxes as an "allCl'l"labl,-= eXF'cnsGt', ~, - >251.--,1 t ~ .3 <br /> _.1>:: ~. .. !. '- <br /> rnost licensees are paying tne City 10% after taxes L"a the::: .~_ ~-. QJ.-~ <br /> befoLe taxes, and ~he City 15 collecting about c'-- .r" ;~ 0,'-' , <br /> .:;; 1:)\.. I ", ',-, ,) -,;:::.:..;::;' <br /> than .L ~. should JJe. . <br /> Attol.-ney Fllla explained t.hat it 1S a "1 ay.,1ful purpose" ).u,_ <br /> charitable g_ambling licensees to pay taxes, b"";,,, taxes <3.i>:::: nGt. <br /> '^c <br /> included as an 1Tallowable expense" as defined by .\- '\.-..- state <br /> l.HC <br /> Gambling Control Boal:d. <br /> Post identified three alternative actions to address .\- 'k ~ <br /> 1...11.1.5 <br /> issue: 1 ) Amend the ordinance to redefine licensees' <br /> obligation to the City; 2 ) Collect retroactively frorl'. the <br /> licensees; 3) Clarify with licensees their obligations per <br /> current ordinance. <br /> MOTION: Hicks moved, seconded by Growe, to notify charitable <br /> gambling , . that effective July , 1992 : <br /> llcensees i, <br /> 1 ) The method of calculating their gross profits ',.:[:......1 <br /> be per ordinance, i . e. , gambling receipts less <br /> prizes and awards, less allowable expenses, equal <br /> . gross profits; <br /> 2 ) The City expects to receive 10% of gross profits; <br /> , , Allowable does not include level of <br /> ~) expenses any <br /> taxes. <br /> Councilrnembers Mahowald and Malone commented ._ t.... ~ + seerns <br /> '-lid..... -- <br /> reasonable to include certain expenses a- "allowable <br /> expenses"/ but perhaps computing the City's 10% based upon <br /> pre-tax figures could be construed as imposing a sort of <br /> double jeopardy. <br /> - <br /> Mayor Sather commented that he would be incl ined to support <br /> Councilmember Hick's motion because the City must be <br /> responsible to collect from every appropriate legal r"evenue <br /> source; in this case the City is missing a revenue <br /> . '. <br /> oppor\..unl....y. <br /> Councilmember Malone commented that it 'l,-,- ~ become much more <br /> ~~a ...... <br /> difficul t and time-consuming to administer and enforce <br /> charitable gambling operations than the City original~y <br /> anticipated. <br /> Councilmember Mahowald suggested further thought and review or <br /> this item before taking action. <br /> . councilmember Hicks withdrew his .' Growe withdrew her <br /> mOl-lOn, <br /> second. <br />