Tenino officials begin overhaul of gambling-tax ordinance after inconsistent rates found

City staff and council members on June 10 opened a review of Tenino's gambling-tax ordinance after finding inconsistent rate language on city forms and a likely overcharge to nonprofit licensees.

Jeff (first name only in the record) told the council he discovered discrepancies while researching the code and forms: some documents showed a 6.5% rate, others 10%, and state law caps certain nonprofit activity at 5%. Jeff said his intent in reviewing the ordinance was to identify a local revenue source that could help fund the city's desired additional police officer; under a state grant that covers 75% of a new officer, Tenino would need to come up with about $25,000 to hire the local match for the remaining 25%.

For the single commercial gambling licensee in town (the tavern on Sussex, referenced in the record), staff outlined two taxing options under state law: a higher net-proceeds percentage or a 5% gross-sales charge. Jeff said changing the code to apply a 5% gross charge to commercial establishments—rather than the current net basis for nonprofits—could raise an estimated 18% to 28% more revenue depending on pull-tab sales, bringing the city closer to its $25,000 target for the officer match.

Councilmembers urged caution about appearing to single out one business and asked staff to draft clearer ordinance language and run the numbers. Jeff also pointed out that nonprofits likely have little revenue to increase and that the city may have been charging above the state-authorized rate on some lottery/raffle activity. No ordinance was introduced or voted on June 10; staff said they would return with a proposed overhaul that cleans up inconsistent language, corrects any overcharges to nonprofits, and outlines options for commercial taxation.