Moses Lake keeps gambling tax

Council divided on decision, denies request

MOSES LAKE - Following a divided vote, Moses Lake City Council is upholding the current 2.5 percent gambling tax on punchboards and pull tabs.

Sporty's Steakhouse owner Dick Lowry, 62, asked the city council to consider eliminating the gambling tax the city collects from punchboard and pull tab sales.

He said it would help his business financially, citing declining sales since 2001 and increasing costs of food and labor. Lowry said there has been a recent slight upturn in sales.

He said the city collects approximately $90,000 from all of the establishments offering the gambling games.

Lowry said if the city doesn't collect the tax, it will go back into the local economy and benefit the city. He said the city is not required to collect the tax.

Mayor Ron Covey said punchboards and pull tabs are meant to be a stimulant for businesses to sell more food and drinks. He said the two gambling games are not meant to be an income for the business to rely on.

Lowry said although it was meant to be a stimulant, it has evolved into a relied-upon income.

"I think you've got a great business going there with or without those punchboards and pull tabs," Covey said.

He said maybe his business is about to become more profitable considering the recent slight upward trend in sales.

Covey said he is not in favor of reducing the sales tax because all gambling establishments must be treated fairly. If another gambling establishment came forward asking for relief from sales tax collection from a different gambling game he could not say "no" in good conscience, he said.

Lowry said all other establishments in Moses Lake offering gambling games have indicated they will not request relief from other taxes.

Several gambling establishment owners and employees were sitting in the audience during the meeting.

Covey said it takes taxes to run government. He said it's an accumulation of several small tax collections used to operate the city.

Lowry said he feels singled out because only gambling establishments are taxed on the games.

Reese, Ecret and Liebrecht voted to reduce the tax to 1.5 percent. Covey, Lane, Councilmember Dick Deane and Pearce voted against the motion.