A Federal Way City Council committee moved forward the issue of cutting gambling taxes Tuesday night to the full City Council.

The committee advanced whether to reduce the city tax rate on card rooms and pull tabs to the next City Council meeting June 1. But the panel sent the issue to the council without any recommended rate cuts.

That’s because the two council committee members present, Mike Park and Jeanne Burbidge, disagreed Tuesday on to what extent rates should be cut.

City staff recommended reducing Federal Way’s card-room tax from the maximum 20 percent to 10 percent, and the pull-tab/punchboard rate from the maximum 5 percent to 4 percent.

John Foley, owner of the Time Out Ale House in Federal Way, said a 3-percent pull-tab tax rate would increase his business more by providing added financial room to raise payouts, attracting more gamblers.

On pull tabs, Park said he favored cutting the rate to 3 percent, while Burbidge said she preferred something closer to the predominant rate of nearby cities, about 5 percent. Burbidge also said she was reluctant to reduce the card-room rate to 10 percent — lower than the 11 percent rate of most area cities.

Burbidge said her concern is if Federal Way has the lowest gambling tax rate in the area, then more gambling businesses will move into the city.

City Manager and Police Chief Brian J. Wilson proposed lowering the rates after P.J. Pockets Casino in Federal Way shut down May 3, laying off 85 full-time workers.

P.J. Pockets co-owner Steve Griffiths said he would aim to reopen the city’s only minicasino and card room Aug. 1 if the council passes a card-room tax cut with an emergency clause.

City staff recommended the rate cuts to help P.J. Pockets reopen and rehire workers, while also restoring lost gambling tax revenue to the city.

Burbidge and Park voted to move forward an emergency cut — but without any recommended rate cuts.