Laserfiche WebLink
<br /> . <br /> CITY OF ARDEN HILLS <br /> . MEM:lUINDUM <br /> IllITE : June 12, 1992 <br /> ro: Mayor and city Council <br /> FRCI!:: @ Terrance R. Post, Temporary city 1\cOoUntant <br /> SUBJEX:T: Charitable Gambling update <br /> At the May 26, 1992, Council meeting, I was directed by council to <br /> obtain additional infonnation regarding charitable gambling. Following <br /> are the results of this data gathering: <br /> HOO 00 CJI'HER cmES CALCUIATE NET PROFIT CXlNI'RIBUI'ION: <br /> I surveyed 15 cities and received replies from 11. Of the 11 <br /> respondents, 100 percent of them allowed charitable gambling and only 27 <br /> percent (3/11) required a net profit =ntriJ::ution to be remitted <br /> directly back to the City. <br /> TIle method of calculation for the net profit =ntribution varied as <br /> follows: <br /> . 1. Gambling receipts less prizes less allowable expenses (Arden <br /> Hills, Little Canada). <br /> 2. Same as above plus subtractions for all, except local, taxes paid <br /> (Maplewood) . <br /> 3. Same as "1." above plus subtractions for all taxes paid <br /> (Roseville) . <br /> CXlUID THE CITY OF ARDEN HILIS JUSI'IFY THE IMPOSmON OF A GAMBLING TAX? <br /> It is interesting to note that 36 percent of the respondents (4/11) in <br /> my survey have :iJnplemented a gambling tax. TIle gambling tax is corrputed <br /> on the basis of gambling receipts less prizes times the tax rate (3 at 3 <br /> percent; 1 at .1 percent) . <br /> Using the city of Arden Hills first quarter 1991 as a baseline, the <br /> licensees are =llecting approximately $650,000 per quarter ($2. 5 <br /> million annually) in gambling receipts less prizes. If the City were to <br /> consider irrq:Josing a gambling tax, the anvunt generated would be as <br /> follows for varying rates: <br /> 1/2% 1% 2% 3% (Max) <br /> $12,500 $25,000 $50,000 $75,000 <br /> . In terms of estimating regulatory =sts to monitor gambling activity <br /> within the city, I believe it would be reasonable to anticipate the <br /> following expenses: <br /> -------- <br />