CITY OF BURIEN, WASHINGTON

                                                             

ORDINANCE NO. 486

 

AN ORDINANCE OF THE CITY OF BURIEN, WASHINGTON, RELATING TO GAMBLING TAXES; AMENDING CHAPTER 3.25 OF THE BURIEN MUNICIPAL CODE; ESTABLISHING A NEW ESCALATING GAMBLING TAX RATE UPON SOCIAL CARD GAMES BASED UPON GROSS REVENUES; establishing a sunset provision for the new escalating tax rate; Establishing a quarterly reporting system; PROVIDING FOR SEVERABILITY, AND ESTABLISHING an effective date.

 

            WHEREAS, section 3.25.010 of the Burien Municipal Code establishes a gambling tax applicable to non-tribal social card games (the cardroom tax) at the rate of eleven percent (11%) upon all gross revenues, and

 

            WHEREAS, currently there is one state licensed non-tribal cardroom operating in the City of Burien from which the City is paid approximately $400,000 per year in gambling tax revenues, and

 

            WHEREAS, since the statewide smoking ban went into effect in 2006, non-tribal casino revenues have declined on average at least fourteen percent, and in the past year month-to-month cardroom gross revenues have declined as much as twenty percent in the City of Burien, and

 

            WHEREAS, the single state licensed cardroom operating in Burien is the fourth largest employer in Burien with a payroll of $2.5 million per year and over 140 employees, and

 

            WHEREAS, the reduction in gross revenues combined with the eleven percent tax upon gross revenues derived from social card games has created a current hardship for cardroom operators, and

 

            WHEREAS, the City Council finds that it would be in the best in interests of the City to amend the city code providing for the gambling tax upon social card games by creating a temporary tax rate that increases as gross revenues increase, thereby providing assistance to cardroom operators during difficult periods while minimizing long-term risk and loss to City tax revenues; and

 

            WHEREAS, the City Council further finds that such modification to the tax rates upon social card games should be subject to further review and absent further action by the Council to extend or adjust the tax rates set for the herein, should return to the pre-existing tax rate after two years;

 

            NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURIEN, WASHINGTON, DOES ORDAIN AS FOLLOWS:

 

            Section 1.  Repeal and Re-enactment of BMC 3.25.030 (Payment).  Section 3.25.030 of the Burien Municipal Code is hereby repealed in its entirety and re-enacted to read as follows:

 

3.25.030  Activity Report; Payment.

 

(a)  Activity Report.  Every holder of a license issued by the Washington State Gambling Commission who conducts any taxable gambling activities within the city shall provide to the city a true copy of each activity report required by the Gambling Commission no later than the date of filing required by the State Gambling Commission.

 

(b)  Tax to Be Paid Quarterly: The tax levied under Section 3.25.010 BMC shall be paid quarterly for the preceding three-month period, or a portion thereof, on or before the thirty-first day of January, the thirtieth day of April, the thirty-first day of July, and the thirty-first day of October, at the office of the City Clerk, Burien City Hall, or his or her designee; provided, however, that those persons conducting activities subject to taxation under this chapter less frequently than once every two months, shall pay the tax for each taxable activity at the office of the City Clerk, Burien City Hall, or his or her designee, within thirty days following the date upon which the activity was conducted.

 

            Section 2.  Amendment of BMC 3.25.010 (Imposition).  For the purpose of revising the rates of imposition of the City of Burien gambling tax upon gross revenues derived from social card games, section 3.25.010 of the Burien Municipal Code is hereby amended to read as follows:  

 

3.25.010  Imposition.  

 

There is hereby imposed a tax, at the rates set forth below, upon the following gambling activities, when authorized by Chapter 9.46 RCW, and when conducted in the city:

 

 (1)Five percent of the gross receipts from punchboards and pull-tabs, as those terms are defined by RCW 9.46.0273 and the Rules and Regulations of the Gambling Commission;

 

 (2)Five percent of the gross revenue, less the amount paid for or as prizes, received from bingo and raffles, as those terms are defined by RCW 9.46.0205 and RCW 9.46.0277;

 

 (3)Two percent of the gross revenue, less the amount paid for or as prizes, from amusement games, as that term is defined by RCW 9.46.0201; and

 

 (4) Gross revenue derived from social card games, as that term is defined by RCW 9.46.0282 and the Rules and Regulations of the Gambling Commission, shall be taxed at the following rates for total gross revenues derived from social card games during each quarter for which taxes are due: 

 

Six (6) percent if gross revenues do not exceed $850,000.00

Nine (9) percent if total gross revenues do not exceed $950,000.00

Fourteen and one-half (14.5) percent if total gross revenues exceed $950,000

 

Example:  If total gross revenues for the first quarter equal $800,000, the applicable tax rate will be 6% (.06 x 800,000 = $48,000); if total gross revenues for the second quarter equal $900,000, the applicable tax rate will be 9% (.09 x 900,000 = $81,000); if total gross revenues for the third quarter equal $1,000,000, the applicable tax rate will be 14.5% (.145 x 1,000,000 = $145,000). 

 

            Section 3.  Sunset Provision.  Section 2 of this Ordinance shall cease to have any legal effect at and after 11:59 p.m. June 30, 2010, unless sooner extended by ordinance, and the tax rate upon gross revenues derived thereafter from social card games shall return to the pre-existing rate of eleven (11) percent as set forth at BMC 3.25.010 as it existed prior to amendment.

 

            Section 4.  Severability.  Should any section, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be pre-empted by state or federal law or regulation, such decision or pre-emption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances.

 

            Section 5.  Effective Date.  This ordinance shall be published in the official newspaper of the City, and shall take effect and be in full force on July 1, 2008.

 

            ADOPTED BY THE CITY COUNCIL AT A REGULAR MEETING THEREOF ON THE 2ND DAY OF JUNE, 2008, AND SIGNED IN AUTHENTICATION OF ITS PASSAGE THIS 2ND DAY OF JUNE, 2008.

 

 

CITY OF BURIEN

/s/ Joan McGilton, Mayor

 

ATTEST/AUTHENTICATED:

/s/ Monica Lusk, City Clerk

 

Approved as to form:

/s/ Chris Bacha

Kenyon Disend, PLLC

Interim City Attorney

 

Filed with the City Clerk: May 28, 2008

Passed by the City Council: June 2, 2008

Ordinance No. 486

Date of Publication: June 5, 2008