A tax increase will be wiped off the books in Ruston because the Town Council jumped the gun in approving it, if a judge’s ruling Friday holds up.
The Ruston Town Council sharply increased the tax on the town’s only minicasino in 2008, leading Point Defiance Café & Casino to shut down most of its gambling operations.
But Pierce County Superior Court Judge Frank Cuthbertson has struck down the gambling tax increase, finding the council didn’t follow its own rules for voting.
If the town doesn’t appeal, the ruling would end the legal battle between the town and the cafe, with neither side leaving happy.
“It took us two years to get a trial,” said Joan Mell, attorney for casino owner Steve Fabre. “By that time Steve Fabre is out of business, which may have been the point to begin with.”
He also has racked up somewhere around $100,000 in legal fees fighting the tax, he said. The judge denied Fabre’s request to have the town pay the fees.
If the tax is lifted, Fabre isn’t ruling out re-opening his card room, the biggest employer in the town of about 700 people before it shut down, laying off 45 employees.
“It’s going to depend on market conditions,” Fabre said. “It’s very expensive to re-open.”
For now, customers can play poker while eating and drinking, but there are no house-backed games. Fabre plans to open a reception hall at the business.
The town doesn’t stand to owe any refunds, since the casino didn’t pay the higher tax after it increased to 12 percent from a rate that had varied between 1 percent and 3 percent.
The council voted 3-1 for the new rate on July 7, 2008, with one member absent. The only problem, the judge said: By its own rules, the council can’t take a final vote on a measure the same day it’s proposed without approval from a majority of the board plus one.
Council members who voted for the increase didn’t return phone messages Tuesday, nor did the town’s attorney, David Britton.
Now the council could press on to the state appeals court. Two members said they don’t know whether the council will appeal.
“It’ll just be a matter of what we think is best for the town financially and for the citizens,” said Councilman Lyle Hardin, who joined the council last year after the casino furor.
The council also has the option of bowing to the ruling and voting again for the tax increase using proper procedure, but Councilman Jim Hedrick, who objected to the 2008 vote, said he hasn’t heard any discussions about a new try.
Jordan Schrader: 360-786-1826 jordan.schrader@thenewstribune.com blog.thenewstribune.com/politics
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