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HomeMy WebLinkAbout08/02/1990 TENTATIVE AGENDA Special Session Shakopee, Minnesota August 2 , 1990 1) Roll Call at 3 : 00 P.M. in the Council Chambers at City Hall 2) Accept the Special Call of the Mayor 3) Welcome by Mayor Laurent 4) Pull tab taxation allowed by State law - by Mr. Roger Franke 5) Questions from Council members 6) Questions from pull tab license holders and bar owners 7) 0.- Other Business ( al r'i a 'n`t' 14"." R �' r5 '- '% � e_ rt 8) Adjourn Dennis R. Kraft City Administrator CITY OF SHAKOPEE INCORPORATED 1870 129 EAST FIRST AVENUE, SHAKOPEE, MINNESOTA 55379-1376 (612)445-3650 07:77A,IAf.v tI July 27, 1990 The Honorable City Council City of Shakopee Shakopee, MN 55379 Mayor Gary Laurent has notified me, Judith S. Cox, City Clerk of the City of Shakopee, that a Special Meeting of the City Council will be held at 3 :00 P.M. on Thursday, August 2, 1990 for the purpose of discussing Council 's concerns about the audit procedures and standards currently in place in our community to monitor pull tab procedures, and any other business which may come before the Council. Respectfully, n Judith ,S. Cox City, Clerk JSC/trw The Heart Of Progress Valley AN EQUAL OPPORTUNITY EMPLOYER July 25, 1990 Shakopee Pull Tab License Holders & Shakopee Bar Owners Servicing Pull Tab Operations: During the past year there has been much media attention focused on pull tab operations in Minnesota. The Shakopee City Council is concerned about the audit procedures and standards currently in place in our community to monitor pull tab operations. State Legislation provides Cities with the ability to impose a tax on pull tab revenues. Legislation provides local taxation for two primary purposes. First, the enforcement and monitoring of pull tab operations within the City. Second, the generation of revenues which could be used to offset certain expenses in the City' s general fund. During this years budget discussions, the City Council has been exploring additional possibilities of increasing revenues. The enforcement and monitoring of pull tab operations in Shakopee and the possibility of generating revenues for the general fund have subsequently been discussed. Before Council considers the taxation of pull tab operations any further, they wish to hear from the pull tab license holders and the owners of licensed pull tab establishments. On Thursday, August 2nd at 3 : 00 P.M. the Shakopee City Council will be holding a meeting in the City Council Chambers. Your attendance is being requested. If you are unable to send a representative from your organization or establishment to this meeting, you may submit comments in writing to my attention prior to the meeting. If you have any other questions or comments regarding the purpose of the meeting, please feel free to call me at #445-3650 . Sincerely, Dk,k-higt 1 1 J11d th S. Cox Cit . Clerk JSC/tiv A,,,. STATE OF MINNESOTA DEPARTMENT OF PUBLIC SAFETY GAMBLING ENFORCEMENT DIVISION Suite 205 1600 University Avenue St. Paul. Minnesota 55104-3827 612/643-3006 July 24, 1990 Ms. Judy Cox City of Shakopee Dear Ms. Cox: You have requested information regarding the potential revenue generated by the 3% and the 10% assessments. The figure on which the 3% is predicated is $746,643.79. The figure on which the 10% is predicated is $384,542.76. Those figures are from the Department of Revenue based on 1989 reports. Sincerely, Roger Franke RF/tmg L17 AN EQUAL OPPORTUNITY EMPLOYER XYZ Organization Gross Receipts $100, 000 Less Prizes 80, 000 Gross Profit $ 20, 000 Gross Profit $ 20, 000 Less Allowable Exp. 10, 000 Net Profit $ 10, 000 A. Local gambling tax up to 3% of gross profit could be imposed by City providing funds generated are used for enforcement purposes. B. Local gambling tax up to 10% of net profit could be imposed by City providing funds generated are designated for specific uses allowed by Statute. C. The State imposes the following gambling tax which is subtracted from the organization net profit: first $500, 000 gross receipts - 2% 501, 000 - 699 , 999 " it - 4% 700, 000 - 899 , 999 " " - 6% 900, 000 and up , " " - 8% STATE OF MINNESOTh `. a= DEPARTMENT OF PUBLIC SAFETY • GAMBLING ENFORCEMENT DIVISION Suite 205 1600 University Avenue St. Paul, Minnesota 55104.3827 612/643.3006 DATE: January 25, 1990 TO: Law Enforcement Agencies FROM: Tom Brownell, Director Gambling Enforcement Division, DPS SUBJECT: Gambling Tax for Enforcement Purposes This office has received inquiries about revenue sources for the enforcement of gambling statutes. Two documents are attached. The first is a copy of M.S. 349.212, Subd. 5, providing for the revenue. Its basic provisions are: 1. A gambling tax may be imposed on licensed organizations in the jurisdiction. 2. The revenue generated can be used only for regulation of lawful gambling. 3. The tax may not exceed 3% of the gross receipts less prizes. 4. No other taxes or fees may be imposed on gambling. 5. The local jurisdiction must report to the Gambling Control Board on March 15 of each year. The second is a copy of the form on which the report is made and instructions for its use. If you have questions about the process, please call this office, (612) 643-3006, for assistance. -94- AN EOUAL OPPORTUNITY EMPLOYER M.S. 349.212 Subdivision 5. [LOCAL GAMBLING TAX.] A statutory or home rule charter city which has one or more licensed organizations operating lawful gambling, and a county which has one or more licensed organizations outside incorporated areas operating lawful gambling, may impose a local gambling tax on each licensed organization within the city's or county's jurisdiction. The tax may be imposed only if the amount to be received by the city or county is necessary to cover the costs incurred by the city or county to regulate lawful gambling. The tax imposed by this subdivision may not exceed three percent of the gross receipts of a licensed organization from all lawful gambling less prizes actually paid out by the organization. A city or county may not use money collected under this subdivision for any purpose other than for the purpose of regulating lawful gambling. A tax imposed under this subdivision is in lieu of all other local taxes and local investigation fees on lawful gambling. Any city or county that imposes a tax under this subdivision shall annually by March 15 file a report with the board in a form prescribed by the board showing (1) the amount of revenue produced by the tax during the preceding calendar year, and (2) the use of the proceeds of the tax. -95- CG 500 Minnesota Lawful Gambling 8/00) City or County Report Form To bo complotod by a city or county imposing a local gambling tax. Road Instructions on back. City or County Name of responsible dry or county official Street Address City CoUnty State Zip coda Taxrate and ands collected t==2.rjfz!,„nrr ,....;,;x*=v",vrerzrsrrr.rrr.,7=r7_=r:=;msr,za.m7,,zzrz'z The tax rate imposed by the city or county is % (not to exceed 3%of gross receipts) Amount of funds collected $ The funds collected through the local gambling tax were used for: Staffing Training Supplies Investigation Other(identify use) Total Balance—Surplus/Deficit Current Year Carry-over balance from previous year . . . . $ TOTAL BALANCE (Surplus/Doficit Currant Yoar plus provious carry-ovor balanco) $ Slonabare of dty oe county official Tido Data Mall this form to: Department of Gaming - Gambling Control Division Mail Station 3315 St. Paul, MN 55146-3315 -96- Instructions for CG500, City or County Report Form Who may impose a tax on local gambling Completion of form Fill in the tax rate and the amount of funds collected by Any Minnesota charter city or a county that has one or the city or county through the tax during the preceding more licensed organizations operating lawful gambling calender year. may impose a local gambling tax on each licensed organization within the city or county. A county may Under"Use of Funds collected," fill in how the city or impose such a tax only when the gambling occurs county used tho proceeds from the tax for each cale- outside Incorporated areas. gory and the total Amount of tax collected If the amount collected exceeds the use, subtract the The tax Imposed cannot be for more than the amount total use of funds from the amount collected and fill in necessary to cover costs accrued by the city or county the surplus amount. if the use of funds exceeds the to regulate lawful gambling. The tax may not exceed 3 amount collected, subtract the amount collected from percent of the gross receipts of a licensed organization. the use of funds and fill in the amount as a deficit. If the number filled In Is a deficit, put parentheses around Restrictions on tax collected the amount. A city or county may not use the money from any tax imposed on lawful gambling for any other purpose than Add the Balance from the current year to the carry-over regulating lawful gambling. balance, if any,from the previous year for the Total Balance. Any city or county that Imposes a special tax on lawful gambling may not impose any other local taxes on such gambling and may not collect any additional in- Where to mail the completed form vostigation fees for local gambling. Mail the completed form to: Department of Gaming Who must file this report Gambling Control Division A city or county that imposes a tax on local gambling Mail Station 3315 must fill out this form each year and filo it with the St. Paul, MN 55146-3315 Department of Gaming—Gambling Control Division by March 15. _97_ 1 (e) For purposes of this subdivision, expenditures made 2 within a six-month period may be aggregated and the defendant 3 charged accordingly. 4 Subd. 7 . Checks for gambling purchases. An 5 organization may not accept checks in payment for the purchase 6 of any gambling equipment or for the chance to participate in 7 any form of lawful gambling. 8 349 . 213 LOCAL AUTHORITY. 9 Subdivision 1 . Local regulation. (a) A statutory or 10 home rule city or county has the authority to adopt more 11 stringent regulation of lawful gambling within its jurisdiction, 12 including the prohibition of lawful gambling, and may require a 13 permit for the conduct of gambling exempt from licensing under 14 section 349 . 214 . The fee for a permit issued under this 15 subdivision may not exceed $100 . The authority granted by, this 16 subdivision does not include the authority to require a license 17 or permit to conduct gambling by organizations or sales by 18 distributors licensed by the board. The authority granted by 19 this subdivision does not include the authority to require an 20 organization to make specific expenditures of more than ten 21 percent from its net profits derived from lawful gambling . For 22 the purposes of this subdivision, net profits are profits less 23 amounts expended for allowable expenses . A statutory or home 24 rule charter city or a county may not require an organization 25 conducting lawful gambling within its jurisdiction to make an 87 1 expenditure to the city or county as a condition to operate 2 within that city or county, except as authorized under section 3 349.16, subdivision 4, or 349 . 212; provided, however, that an 4 ordinance requirement that such organizations must contribute 5 ten percent of their net profits derived from lawful gambling to 6 a fund administered and regulated by the responsible local unit 7 of government without cost to such fund, for disbursement by the 8 responsible local unit of government of the receipts for lawful 9 purposes, is not considered an expenditure to the city or county 10 nor a tax under section 349 . 212, and is valid and lawful. 11 (b) A statutory or home rule city or county may by 12 ordinance require that a licensed organization conducting lawful 13 gambling within its jurisdiction expend all or a portion of its 14 expenditures for lawful purposes on lawful purposes conducted or 15 located within the city' s or county' s trade area. Such an 16 ordinance must define the city' s or county' s trade area and must 17 specify the percentage of lawful purpose expenditures which must 18 be expended within the trade area. A trade area defined by a 19 city under this subdivision must include each city contiguous to 20 the defining city. 21 (c) A more stringent regulation or prohibition of lawful 22 gambling adopted by a political subdivision under this 23 subdivision must apply equally to all forms of lawful gambling 24 within the jurisdiction of the political subdivision. 25 Subd. 2. Local approval. Before issuing or renewing 88 1 a premises permit or bingo hall lioense, the board must notify 2 the city council of the statutory or home rule city in which the 3 organization ' s premises or the bingo hall is located or , if the 4 premises or hall is located outside a city, the county board of 5 the county and the town board of the town where the premises or 6 hall is located. The board may require organizations or bingo 7 halls to notify the appropriate local government at the time of 8 application. This required notification is sufficient to 9 constitute the notice required by this subdivision. The board 10 may not issue or renew a premises permit or bingo hall license 11 unless the organization submits a resolution from the city 12 council or county board approving the premises permit or bingo 13 hall license . The resolution must have been adopted within 60 14 days of the date of application for the new or renewed permit or 15 license. 16 349 . 215 EXAMINATIONS. 17 Subdivision 1 . Examination of taxpayer . To determine 18 the accuracy of a return or report, or in fixing liability under 19 this chapter , the commissioner of revenue may make reasonable 20 examinations or investigations of a taxpayer ' s place of 21 business, tangible personal property, equipment, computer 22 systems and facilities, pertinent books , records , papers , 23 vouchers , computer printouts , accounts, and documents . 24 Subd. 2 . Access to records of other persons in 25 connection with examination of taxpayer. When conducting an 89 `7 a . TO: Dennis R. Kraft, City Administrator FROM: Gregg Voxland, Finance Director RE: Payment for 1990 Grass Rig Equipment DATE: August 1, 1990 Introduction Staff is asking for approval to disburse funds the payment of the equipment for the 1990 Fire Department grass rig. Background Council previously authorized accepting the quote from Custom Fire Apparatus for the purchase of the fire fighting equipment for the new grass rig. The truck is completed but the vendor is insisting on cash on delivery. We have received the invoice in the amount of $14,855.00 and the Fire Chief has approved it. Action Requested Move to authorize the disbursement of funds for the fire equipment for the 1990 grass rig in the amount of $14,855.00 to Custom Fire Apparatus.