HomeMy WebLinkAbout12/18/2013 7A AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Ordinance No 5238 reducing Study Session Date December 11, 2013
the tax relating to punchboards and pull- COUNCIL MEETING Date December 18, 2013
tabs Department Finance
Presenter Becky Hasart
Phone 360 - 473 -5722
SUMMARY- The City currently assesses a 4% tax on the gross receipts derived from punchboard
and pull -tab activity in commercial /retail establishments The City has received a petition signed by
all twelve businesses subject to this tax requesting it be lowered to 2% (attached) The following
table compares our current tax rate to the other jurisdictions in Kitsap County
Jurisdiction Commercial Rate 2012 receipts
Kitsap County 3% $132,229
Bainbridge Island 10% None
Bremerton 4% $74,171
Poulsbo 5% $3,000
Port Orchard 3% $63,441
Two percent would make us the lowest rate in the county Finance committee suggested a three
percent rate may be more appropriate The proposed ordinance amends BMC 3 72 020 to reduce
the tax on gross receipts derived from punchboard and pull -tab activity from 4% to 3%
ATTACHMENTS. 1) Punch board /Pull -tab Tax Petition and 2) Proposed Ordinance amending BMC
3 72 020 relating to the taxation of punchboards and pull -tabs
FISCAL IMPACTS (Include Budgeted Amount) The 2014 anticipated revenue for punchboard/pull-
tab tax is $73,000 based on the current 4% rate If the rate is changed to 3 %, this amount would
decrease by $18,250 (new budget of $54,750)
STUDY SESSION AGENDA ❑ No Presentation ® Full Presentation
STUDY SESSION ACTION: ❑ Consent Agenda ® General Business ❑ Public Hearing
RECOMMENDED MOTION:
Move to approve Ordinance No 5238 of the City Council of the City of Bremerton, Washington,
amending BMC 3 72 020 of the Bremerton Municipal Code entitled "Persons Subject to Tax — Tax
Rates" relating to the taxation of punchboards and pull -tabs and making other related amendments
COUNCIL ACTION: ['Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 11/02/12