Council approves fix to admissions tax

The Monroe City Council unanimously approved an ordinance last week amending the city's Admissions Tax code, to increase specificity in relation to which types of businesses are eligible for the tax.-á

The matter initially came up in June, after Jump, Rattle & Roll owners Kristina and Paul Barker learned they would be required to pay a 5 percent admissions tax on all revenues earned during open play sessions at their business. Located in Monroe's industrial area, Jump, Rattle & Roll provides families with 8,500 square feet of interactive play space. The indoor family-fun center features jumbo-sized bouncy houses and other inflatables, slides, dollhouses, air hockey, foosball and more.

While the Barkers opened their business in 2011, they said they were not previously made aware of the tax. They said they might not have opened their business in Monroe, had they known. They asked the city to look at the code, to see if there was anything that could be done to exempt small, activity-based businesses like theirs.

The Barkers asked council for its consideration on several occasions, including last week. Jump, Rattle & Roll is all about healthy activity for kids and adults, while creating cherished family memories, Paul said.

"There's no TV at Jump, Rattle & Roll, there's no Wi-Fi. It is literally impossible to not exercise at Jump, Rattle & Roll,GÇ¥ Paul said. "That is what we are all about.GÇ¥

Increasing code specificity by removing the section that applied the tax to the use of "equipment or facilities for purposes of entertainment or amusement,GÇ¥ effectively solved the issue for small businesses like Jump, Rattle & Roll, but when council passed the first reading of the ordinance on July 12, Councilmember Jeff Rasmussen was worried about repercussions. He was concerned the city could lose out on revenue brought in during tournaments held at Lake Tye Park, including the summer wakeboarding competitions, by removing the ambiguous language.-á

Monroe City Administrator Gene Brazel confirmed that the change could have a negative impact on city revenue by excluding those competitions from the tax.

As a remedy, the city added "any building, enclosure or area for the purpose of observing a performance, competition or athletic eventGÇ¥ to its list of businesses to be levied the tax. Other business types eligible for the tax are theaters, movie theaters, dance halls, adult arcades, adult booths, nude model studios, golf courses, private clubs, auditoriums, circuses, sideshows and outdoor amusement parks.

Admissions tax is meant to be a pass-through tax, meaning it's collected by the establishment on top of the regular cost of admission, and then paid to the city.

Nonprofits and educational facilities are exempt.

The amended code passed unanimously.