HomeMy WebLinkAboutCAP 2011-01-10 Item 2B - Ordinance - Social Card Rooms N '1L''A='yy
o �y City of Tukwila
1''` Jim Haggerton, Mayor
goaY= INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
City Councilmembers
FROM: Shelley M. Kerslake, City Attorney
DATE: January 5, 2010
SUBJECT: Allowing Social Card Rooms Related Gambling Tax Amendments
ISSUE
Whether to allow social card rooms city -wide for a finite period of time.
BACKGROUND
Currently, the City has a partial ban on social card rooms. New social card rooms are banned,
but existing social card rooms have been allowed to continue to operate (see TMC 5.20.010).
Three social card rooms operate in Tukwila, and these generate significant gambling tax revenues
for the City. A business owner seeking to start a new social card room in the City has called into
question the City's ability to prohibit future card room uses while allowing legal non conforming
social card games to remain.
To allow time for further review of the legal, political, financial and practical considerations
involved with this issue, a moratorium was established and has been extended twice (in May and
September, 2010). After extensive study of the issue both pubiically and internally, it appears in
the City's best interests to allow social card rooms for a finite term of three years.
DISCUSSION
The proposed ordinance eliminates the current partial ban on social card rooms by repealing
TMC Chapter 5.20 "Certain Gambling Activities Prohibited This has the effect of allowing
social card rooms city -wide, subject to a sunset clause in three years. The City Council may
select a longer term for the sunset clause. Additionally, the proposed ordinance clarifies the
penalty applicable to late gambling tax payments.
RECOMMENDATION
The Council is being asked to approve the proposed ordinance and consider this item at the
January 24, 2011 Committee of the Whole meeting and subsequent February 7, 2011 Regular
Meeting.
ATTACHMENTS
Draft Ordinance
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, REPEALING TUKWILA MUNICIPAL CODE "TMC
CHAPTER 5.20 (CERTAIN GAMBLING ACTIVITIES PROHIBITED) TO
ALLOW SOCIAL CARD ROOMS CITYWIDE FOR A PERIOD OF THREE
YEARS; AMENDING TMC SECTION 3.08.080 (PAYMENT OF TAX
PENALTY FOR LATE PAYMENTS); PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE
WHEREAS, on March 22, 2010, the Tukwila City Council passed Ordinance No.
2279, which declared an emergency necessitating the immediate imposition of a
moratorium of limited duration on the filing of applications for building permits,
development permits, or any other permits or approvals required for food or drink
establishments seeking to conduct new social card game gambling activities, or to
expand existing social card game gambling activities, whether as a principal use or as
an accessory use, as more particularly described in Ordinance No. 2279; and
WHEREAS, on May 3 and September 20, 2010, the moratorium was renewed to
allow time for further study of the issue; and
WHEREAS, the three existing social card rooms operating in Tukwila generate
significant gambling tax revenues for the City; and
WHEREAS, at least one business has expressed an interest in acquiring a State
license to operate an additional social card game in Tukwila and this business venture has
called into question the ability of the City to prohibit future card room uses while allowing
legal non conforming social card games to remain; and
WHEREAS, the prohibition on certain gambling activities, and exceptions thereto, set
forth in Chapter 5.20 of the Tukwila Municipal Code shall be repealed to allow social card
games citywide for a period of three years; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Chapter 5.20 TMC Repealed. Ordinance No. 1917, 1, as codified at
chapter 5.20 TMC, "Certain Gambling Activities Prohibited," is hereby repealed in its
entirety.
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Section 2. Ordinance Amended. Ordinance No. 1809 §1 (part) as codified at
Tukwila Municipal Code 3.08.080, "Payment of Tax Penalty for Late Payments," is
hereby amended to read as follows:
3.08.080 Payment of Tax Penalty for Late Payments.
A. The tax imposed by this chapter shall be due and payable in quarterly
installments, and remittance therefor shall accompany each return and be made on or
before the last day of the month following the quarterly period in which the tax accrued.
B. There shall be added a penalty for each payment due, if such payment is not
made by the due date thereof, as follows:
1. A lump sum penalty equal to 10% penalty of the tax due, with a minimum of
$2.00, for the first 17 days' delinquency;
2. A lump sum penalty equal to 15% penalty of the tax due, with a minimum of
$4.00, for 3 e '1 e 'any delinquency of 18 or more days.
-e--- e e -e c. e e- a
section.
Section 3. Sunset Provision. Sections 1 and 2 of this Ordinance shall expire and
be of no further force or effect after midnight on February 15, 2014. This sunset
provision does not apply to Sections 2, 3 and 5 of this Ordinance.
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, shall take effect and be in full force five (5) days after the date of
publication, and shall be retroactively applied to taxes payable for the first quarter of 2011.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 2011.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, City Clerk Jim Haggerton, Mayor
Filed with the City Clerk:
APPROVED AS TO FORM BY: Passed by the City Council:
Published:
Effective Date:
Shelley M. Kerslake, City Attorney Ordinance Number:
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