Calendar

Category All Art Classes Classical Music Concerts DANCE Etc Exhibits Families Farmers Markets Film Happenings Holiday Holiday Lectures Music (non-classical) Theater

Submit events

Ruston might raise gambling tax

By John Larson

Tacoma Weekly
jlarson@tacomaweekly.com
Published on: May 15, 2008

Establishments in Ruston that offer gambling to their customers could be facing a steep tax increase in the near future. Ruston Town Councilmember Wayne Stebner is proposing an increase in the city’s gambling tax from the current 3 percent to 20 percent, the maximum allowed under state law.

Stebner said Point Defiance Café and Casino currently produces about $40,000 a year in tax revenue for the town. Were the tax to go up to 20 percent, his rough estimate is the revenue from the casino would be about $233,000.

Stebner first proposed the idea during a council meeting in April. It was on the agenda for the May 5 meeting, but was removed at the beginning of the meeting.

A study session on the topic will be held later this month.

The owner of the casino, Steve Fabre, filed a lawsuit against Chinese Christian Church of Tacoma, which is next door to his establishment on Pearl Street. The lawsuit also named Virginia Carpio, editor of the community newsletter Ruston Connection. The lawsuit was settled out of court.

Stebner said his proposal to raise the gambling tax has nothing to do with that lawsuit. “I don’t think there is a connection,” he remarked.

Stebner mentioned a study of the city’s finances recently compiled by consultant Steve Marcotte. That study indicated the city might run out of money before revenue starts rolling in from Point Ruston, a major mixed-use development planned along the shore of Commencement Bay.

Stebner said the city faces additional expenses, including a hostage standoff in January to which Tacoma Police Department responded, purchasing a new police car, upgrading its contract with Law Enforcement Support Agency and the salary for a new full-time administrative assistant.

“That all hit us about the same time,” Stebner said. “We need to start covering our costs. We have others coming up, and we need to move forward.”

Stebner said Fabre called him and the two discussed the matter. Stebner noted that the proposed tax increase would also impact two establishments that sell pulltabs, Ruston Inn and Unicorn Tavern.

At one point in the late 1990s the town’s gambling tax was set at 20 percent, Stebner said. He said he assumes it was lowered to 3 percent when Point Defiance Café and Casino opened in the building that once housed the Shoboat, a bar and music venue.

Stebner said that was done just to help the mini-casino get up and running, and then the town was supposed to step up the tax rate. “That never seemed to happen,” he remarked.

Fabre could not be reached for comment by press time.

Story Tools

This Week's
Front Page