Council To Consider New Tax On Pull-Tabs Plan Would Impose 10 Percent Tax On Profits Instead Of 5 Percent On Gross Sales

The Spokane City Council plans to decide tonight whether to give businesses that sell pull-tabs a break on their taxes.

Last week, council members delayed a decision on the proposal.

Businesses that sell the hand-held paper gambling games want the city to base its tax collection on their profits instead of everything they sell.

Currently, a for-profit business that sells $1,000 worth of pull-tabs must pay a 5 percent tax on total sales.

That same business may have paid out $800 in winnings.

The proposed change means the business would pay taxes only on $200 - the net profit - but at a higher rate of 10 percent.

Councilman Jeff Colliton, who works for a pull-tab distributer, is pushing for the change.

Last week, he said he hadn’t decided whether he would vote on the proposal.

City Attorney Jim Sloane has assured him his vote wouldn’t be a conflict of interest.

The city would lose about $300,000 in revenues if the tax is reduced.

But Colliton counters that the loss will be offset by taxes on card rooms, a rapidly expanding business.

Also Monday, the council will hear a report from the Peace and Justice Action League about a proposal to boost the minimum wage inside city limits.

, DataTimes MEMO: This sidebar appeared with the story: CITY COUNCIL MEETING A briefing for council members starts at 3:30 p.m. in the lower-level briefing room of City Hall, 808 W. Spokane Falls Blvd. The meeting begins at 6 p.m.