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<br /> . Al-den Hi 11 s c.)utlcil i'1ay : 392 <br /> - -, <br /> Post said his concern is that the majority or llcensees arf;: <br /> inel Lldi:ng t.axes as ar.;. l'a~lo';;Jable e::<:pen.s2". Tht:" es L.:l_~ ;:-. - - ." l, ,'J. ;~ <br /> rnost licensees are paying the City 10% aft~r taxes rather t~-.aL <br /> bei 0:>:': tazes, and the Cit.y is collecting about $60,00C: , <br /> .:.. (;:,':.;3 <br /> thaa ~ ~ should ok':;:".. <br /> At t():::ney Filla explained that. ' , is a TTlawful purpos e" for <br /> lc <br /> charitable gambling licensees to pay taxes, but taxes aLl::: no:. <br /> included as an "allowable expense" as defined by the State <br /> Gambling control Board. <br /> Post i den t.i f i ed three alternat.ive actions to address this <br /> issue: 1 ) Amend the ordinance to redefine licensees' <br /> obligation to the Cit.y; ~ , collect. retroactively from the <br /> L) <br /> licensees; 3) Clarify with licensees their obligat.ions per <br /> current ordinance. <br /> MOTION: Hicks movedl seconded by Growe, to notify charitable <br /> gambling licensees that effective July , 1992: <br /> .l, <br /> 1) The method of calculating their gross profits w" 1 <br /> ~" . <br /> be per ordinance, i.e. gambling receipt.s 1 ess <br /> prizes and awards, less allowable expenses, equal <br /> . gross profits; <br /> ')\ The City expects to receive 10% of gross profi ts; <br /> ~ J <br /> , \ Allowable expenses does not include any 1 evel of <br /> C>j <br /> taxes. <br /> counciirnembers Mahowald and Malone commentl:;d that lS seer:iS <br /> reasonable to incl ude certain expenses as l1allowable <br /> expenseslt, but perhaps computin.g t.he Cit.y's 10% based upon <br /> pre-tax figures could be construed -~ imposing a sort of <br /> 0... <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 :;::evenue <br /> source; in this case the City lS missing a revenue <br /> opportunity. <br /> Councilmember Malone commented that. it h'- become much more <br /> ~~<::l. .::> <br /> difficul t and time-consuming to administer and enforce <br /> charitable gambling operations than the City originally <br /> anticipated, <br /> Councilmember Mahowald suggested further thought and review of <br /> this item before taking action. <br /> . Councilmember Hicks withdrew his " Growe withdrew her <br /> mOL-lCn, <br /> second. <br />