Council Delays Pull-Tab Vote For Public Hearing Proposed Tax Change Originally Presented As An ‘Emergency Ordinance’

Tue., March 3, 1998

By Kristina Johnson kristinaj@spokesman.com

Businesses that sell pull-tab games won’t know until next week if they stand to get a break on their taxes.

On Monday, the Spokane City Council agreed to delay a formal vote on a proposed plan to tax the businesses’ profits instead of everything they sell.

The proposed tax change originally was presented as an “emergency ordinance,” meaning that it would take effect immediately.

Councilman Jeff Colliton, who is pushing the tax reduction, urged the council to consider the proposal as a routine ordinance, which wouldn’t take effect until 30 days after approval.

Because of the change, the proposal won’t get a hearing until next week.

Gambling taxes are collected on a quarterly basis, with the second quarter starting April 1.

Changing the ordinance from an emergency to a routine status means the new tax system - if approved - wouldn’t take effect until July 1.

Currently, a for-profit business that sells $1,000 worth of the hand-held paper gambling games must pay a 5 percent tax on total sales. That same business may have paid out $880 in winnings from that $1,000.

The proposed change means the business would pay taxes only on $120 - the profit - but at a higher rate of 10 percent.

Colliton, who works for a pull-tab distributor, said Monday he hasn’t decided if he’ll vote on the tax measure. City Attorney Jim Sloane has assured him his vote wouldn’t be a conflict of interest.

During the public forum, Spokane resident Ronda Cahill urged Colliton to abstain from the issue.

“I wouldn’t risk my good name over something like this,” she said.

Reducing the tax would cost the city about $300,000 a year.

That loss may be offset by taxes on card rooms, a business that has expanded rapidly during the past few months.

Also Monday, the council approved:

Adding three positions to the Spokane Police Department.

The two detectives and one sergeant will replace officers shifted to the task force investigating the Spokane serial murders.

A $98,450 contract with CH2M Hill to complete phase two of the Wellhead Protection Program, which is designed to protect the city’s drinking water.

, DataTimes MEMO: This sidebar appeared with the story: WHAT’S NEXT The proposal to slash the tax on pull-tab games will get a public hearing during next week’s council meeting.

This sidebar appeared with the story: WHAT’S NEXT The proposal to slash the tax on pull-tab games will get a public hearing during next week’s council meeting.

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