HomeMy WebLinkAbout2017-009 Council Ordinances1"Reading: September 1 1
, 2017
Publication:
October 3,
2017
2nd Reading: September
25, 2017
Effective:
November 2,
2017
CITY OF LINO LAKES
ORDINANCE NO. 09-17
ORDINANCE AMENDING TITLE 600, CHAPTER 611 OF THE LINO LAKES
CODE OF ORDINANCES RELATING TO LAWFUL GAMBLING
The City Council of Lino Lakes ordains as follows:
Section 1. That Section 611.10 of the above -entitled ordinance be and is
hereby repealed.
§ 611.10 LOCAL CAMBLINC TAX.
(1) A local gambling tax of 0.10% is imposed on the gross receipts of a licensed
organization from all lawful gambling less prizes actually paid out by the organization to
be used only by the city to cover the costs of regulating lawful gambling.
(2) The tax shall be paid by the organization on a monthly basis and shall be
reported on a copy of the monthly gambling activity summary and tax return filed with
the Minnesota Department of Revenue. The report shall be an exact duplicate of the
report filed with the Department and must contain the signatures of organization officials
as required on the report form.
(3) The tax return and payment of the tax due must be postmarked or received in
the office of the City Clerk on or before the second day of the second month following
the reportable month.
(1) An incomplete tax return will not be considered timely filed unless corrected
and returned by the due date for filing.
Section 2. That Section 611.11 of the above -entitled ordinance be amended to
read as follows:
§ 611.11 PROFITS FROM GAMBLING.
During any year that an eligible organization is licensed to conduct gambling
events, not less than 50% of the net profits from the operation of gambling by charitable
organization shall be used for charitable purposes directly benefiting residents of the
trade area, which shall be the city and every adjacent city and township. A report of the
annual disposition of the gambling funds shall be provided to the City Clerk on or before
the second day of February -ach y-ar upon the city's request.
Section 3. That Section 611.12 of the above -entitled ordinance be amended to
read as follows:
§ 611.12 RECORDS AND REPORTS.
All qualified organizations operating gambling devices in the city shall keep monthly
financial records of gambling proceeds and disbursements and shall submit copies of the
month.
Adopted by the Lino Lakes City Council this 25thday of September , 2017.
The motion for the adoption of the foregoing ordinance was introduced by Council
Member Rafferty and was duly seconded by Council Member Maher and
upon vote being taken thereon, the following voted in favor thereof:
Rafferty, Maher, Kusterman, Manthey, Reinert
The following voted against same:
none
ATTEST:
e Bartell, City Clerk
Jeff Reine, , , ayor
CITY COUNCIL
AGENDA ITEM 3A
STAFF ORIGINATOR: Julie Bartell, City Clerk
MEETING DATE: September 25, 2017
TOPIC: 2nd Reading and Adoption of Ordinance No. 09-17
VOTE REQUIRED: 3/5
INTRODUCTION
Staff is requesting City Council consideration of the 2nd reading and adoption of Ordinance No.
09-17, "Amending Title 600, Chapter 611 of The Lino Lakes Code of Ordinances Relating to
Lawful Gambling."
BACKGROUND
This amendment removes language requiring holders of a City Lawful Gambling Premise
License to pay a local gambling tax to the city.
The city was notified by the state Gambling Control Board that collection of local gambling taxes
are strictly limited to costs incurred by the city for specific activities intended to regulate lawful
gambling. Since the city does not have a regulation process in place that meets this requirement,
staff recommends that the city cease collecting this tax. The city has collected an average of
$1,000 in taxes annually.
State law does allow cities to assess an annual investigation fee on gambling organizations if
there is no local tax. Staff is proposing the addition of an annual fee to the City Fee Schedule.
Currently there are four lawful gambling premise license holders in the city.
In addition to the removal of the gambling tax, staff is recommending two changes to the
gambling regulations relating to reporting. These changes remove the requirement for gambling
organizations to submit monthly/annual accounting reports to the City. The City will retain the
authority to see the gambling records upon request.
The 1St Reading of this ordinance was approved by the City Council on September 11, 2017.
RECOMMENDATION
Approve 2nd Reading and Adoption of Ordinance No. 09-17, "Amending Title 600, Chapter
611 of The Lino Lakes Code of Ordinances Relating to Lawful Gambling."
ATTACHMENTS
Ordinance No. 09-17.
Chapter 611 of the Code of Ordinances