Chapter 3.40
GAMBLING TAX*
Sections:
3.40.010 Adoption by reference.
3.40.030 Taxes imposed—Amounts.
3.40.040 Tax to be computed and paid quarterly—Exceptions.
3.40.050 Administration and collection of tax.
3.40.070 Failure to make timely payments of tax or fee.
3.40.080 Notice of intention to engage in activity to be filed.
3.40.100 Overpayment or underpayment of tax.
3.40.110 Failure to make return.
3.40.120 Tax additional to others.
3.40.130 Taxes, penalties and fees constitute debt to municipality.
3.40.140 Limitations on right of recovery.
* Prior ordinance history: Ords. 419 and 448.
3.40.010 Adoption by reference.
A. The following Washington statutes are adopted by reference as and for a portion of the gambling ordinance of the city as if set forth in full in this chapter:
1. RCW 9.46.150;
2. RCW 9.46.170;
3. RCW 9.46.185;
4. RCW 9.46.190;
5. RCW 9.46.195;
6. RCW 9.46.196;
7. RCW 9.46.198;
8. RCW 9.46.230(5);
9. RCW 9.46.240.
B. The amendment, addition or repeal by the Washington Legislature of any section of any of the adopted statutes set forth in this section shall be deemed to amend this chapter and the statutes contained in this chapter which are adopted by reference, in conformity with the amendment, addition or repeal, and it shall not be necessary for the legislative authority of the city to take any action with respect to such addition, amendment or repeal. (Ord. 566 § 2, 1986)
3.40.020 Definitions.
For the purposes of this chapter the words and terms used shall have the same meaning as each has under Chapter 218, Laws of 1973, 1st Ex. Sess. and RCW Chapter 9.46, each as amended, and under the rules of the Washington State Gambling Commission, WAC Chapter 230, unless otherwise specifically provided or the context in which they are used in this chapter clearly indicates that they be given some other meaning. (Ord. 566 § 3, 1986)
3.40.030 Taxes imposed—Amounts.
There is levied a tax upon all persons, associations and organizations who conduct or operate gambling activities within the city of Battle Ground, or who have been duly licensed by the Washington State Gambling Commission to conduct or operate such gambling activities, which tax shall be paid on the following gambling activities in the following respective amounts:
A. Bingo and Raffle Games. Any bingo or raffle activity, a tax computed at the rate of ten percent of the difference between the gross revenue received from the conduct of such activity and the amount paid for or as prizes in the conduct of such activity; provided, however, that no tax shall be imposed under the authority of this section on bingo or raffles when such activity or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in RCW 9.26.020(3), which organization has no paid operating or management personnel and has gross income from bingo or raffles, or any combination thereof, not exceeding five thousand dollars per year less the amount paid for as prizes; and provided further that activities carried out by public or private schools or by organizations sponsored by or related to public or private schools, including parent organizations and student body organizations, shall be exempt from the provisions of this chapter when the proceeds of such activities are applied for the benefit of any such school, or school sponsored organization; and provided further, that any deviation from exemption restrictions enumerated in this chapter shall subject such organization to the requirements of this chapter to the same extent as if such exemption had not been granted, including required payment within ten days after written demand of the city of Battle Ground of any taxes formerly granted exemption under this chapter.
B. Punch Board or Pull-tab. Any punch board or pull-tab, a tax computed at the rate of five percent of the gross receipts from the conduct of such activity.
C. Social Card Rooms. Any card game, a tax computed at the rate of ten percent of the gross revenue from the conduct of such activity.
D. Public Card Rooms. Any card game, a tax computed at the rate of ten percent of the gross revenue from the conduct of such activity. (Ord. 566 § 4, 1986)
3.40.040 Tax to be computed and paid quarterly—Exceptions.
Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each the following periods of the year:
A. January 1st through March 31st;
B. April 1st through June 30th;
C. July 1st through September 30th;
D. October 1st through December 31st;
and shall be due and payable not later than thirty days following the end of the period for which it is computed, and the remittance, together with return forms, shall be made to the city of Battle Ground, on or before the last working day of the month next succeeding the quarterly period in which the tax is accrued; provided, that the following exceptions to the payment schedule shall be allowed or required:
A. Whenever any person, association or organization taxable under this chapter, conducting or operating a taxable activity on a regular basis discontinues operation of that taxable activity for a period of more than four consecutive weeks, or quits business, sells out or otherwise disposes of the business, or terminates the business, any tax due shall become due and payable, and such taxpayer shall, within ten working days thereafter, make a return and pay the tax due.
B. Whenever it appears to the city of Battle Ground that the collection of taxes from any person, association or organization may be in jeopardy, the city of Battle Ground, after not less than ten days notice to the taxpayer, may require the taxpayer to remit taxes and returns at shorter intervals than monthly, as the city of Battle Ground shall deem appropriate under the circumstances.
C. Whenever reports required by the Washington State Gambling Commission under the provisions of RCW Chapter 9.46 are required on less than a quarterly basis, any person, association or organization under this chapter shall report to the city of Battle Ground on the same basis. (Ord. 616 § 1, 1988; Ord. 566 § 5, 1986)
3.40.050 Administration and collection of tax.
Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the Battle Ground city treasurer/finance director, under the supervision of the city manager. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the city. The taxpayer shall be required to swear, affirm and certify under penalty of perjury under the laws of the state of Washington that the information given in the return is true, accurate and complete. The city treasurer/finance director is authorized, but not required, to mail to taxpayers the necessary return forms. Failure of the taxpayer to receive such a form shall not excuse a taxpayer from making the return and timely paying all taxes due. The city treasurer/finance director shall make forms available to the public in reasonable numbers at City Hall during regular business hours.
In addition to the return form, a copy of the taxpayer’s quarterly report to the Washington State Gambling Commission required by WAC Chapter 230-08 for the period in which tax accrued shall accompany remittance of the tax amount due. (Ord. 02-009 § 38, 2002: Ord. 98-023 (part), 1998; Ord. 566 § 6, 1986)
3.40.060 Method of payment.
Taxes payable under this chapter shall be remitted to the city of Battle Ground on or before the time required, by bank draft, certified check, cashier’s check, personal check, money order or in cash. If payment is made by draft or check, the tax shall not be deemed paid until the draft or check is honored in the usual course of business, nor shall the acceptance of any sum by the city of Battle Ground be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return and a copy of the quarterly report to the Washington State Gambling Commission shall be filed in the office of the city of Battle Ground after notation by the office upon the return of the amount actually received from the taxpayer. (Ord. 566 § 7, 1986)
3.40.070 Failure to make timely payments of tax or fee.
A. If full payment of any tax or fee due under this chapter is not received by the city of Battle Ground on or before the date due, there shall be added to the amount due a penalty fee as follows:
1. One to five days late, five percent of tax due;
2. Six to fifteen days late, ten percent of tax due;
3. Sixteen to twenty days late, fifteen percent of tax due;
4. Twenty-one to thirty days late, twenty percent of tax due;
but in no event shall the penalty amount be less than twenty-five dollars. In addition to this penalty the city of Battle Ground may charge the taxpayer interest of one percent of all taxes and fees due for each thirty-day period, or portion thereof, that such amounts are past due.
B. Failure to make payment in full of all tax amounts, penalties and interest, within thirty days following the date the tax amount initially became due shall be both a civil and criminal violation of this section and grounds for the city to request or institute proceedings to revoke any and all business, gambling or occupancy licenses or permits of the taxpayer. (Ord. 566 § 8, 1986)
3.40.080 Notice of intention to engage in activity to be filed.
In order that the city of Battle Ground may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the city of Battle Ground a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the city of Battle Ground together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than five days prior to conducting or operating the taxable activity or twenty days after the effective date of the ordinance codified in this chapter if the activity is being conducted prior to its adoption. No fee shall be charged for such filing, which is not for the purpose of regulation of this activity but for the purposes of administration of this chapter only. Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 566 § 9, 1986)
3.40.090 Records required.
A. Each person, association or organization engaging in an activity under this chapter shall maintain records respecting that activity which truly, completely and accurately disclose all information necessary to determine the taxpayer’s tax liability under this chapter during each base tax period. In addition, all information and items required by the Washington State Gambling Commission under WAC Chapter 230-08, and the United States Internal Revenue Service respecting taxation, shall be kept and maintained for the periods required by those agencies.
B. The premises and paraphernalia, and all books, records and other items required to be kept and maintained under this section and under RCW Chapter 9.46, and any person, association or organization receiving profits therefrom or having any interest therein, shall be subject to and immediately made available for, inspection and audit at any reasonable time, with or without notice, upon demand by the city of Battle Ground or its designee for the purpose of determining compliance or noncompliance with this chapter.
C. A reasonable time for the purposes of this section shall be:
1. All records for gambling devices other than punch board or pull tabs shall be kept and maintained for a period of not less than three years. Each punch board or pull tab series which is removed from operation, together with prize flare, all unplayed tabs, and all winning punches or tabs, shall be retained by the operator and made available for inspection. The minimum retention time for devices removed from play shall be six months following the last day of the month in which the device was removed from play.
2. If the items or records to be inspected or audited are located anywhere upon a premises any portion of which is regularly open to the public or members and guests, then at any time when the premises are so open, or at which they are usually open; or
3. If the items or records to be inspected or audited are not located upon a premises set out in subsection C1 of this section, then any time between the hours of eight a.m. and nine p.m., Monday through Friday, immediately upon demand.
D. Where the taxpayer does not keep all of the books, records or items required to be kept or maintained under this section in the jurisdiction, the taxpayer shall either:
1. Produce all of the required books, records or items within the city of Battle Ground for such inspection within five days following a request of the city of Battle Ground to do so; or
2. Bear the actual cost of the inspection by the city of Battle Ground or its designee, at the location at which such books, records or items are located, provided that a taxpayer choosing to bear these costs shall pay in advance to the city of Battle Ground the estimated costs thereof, including but not limited to, round trip fare by the most rapid means, lodging, meals and incidental expenses shall be determined following such examination of the books, records or items required to be kept or maintained under this section.
E. A taxpayer who fails, neglects or refuses to produce such books, records and other items, either within or without this jurisdiction, in addition to being subject to other civil and criminal penalties provided by this chapter or otherwise, shall be subject to a jeopardy tax assessment by the city treasurer/finance director.
F. Such jeopardy tax assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing to the city of Battle Ground by the taxpayer unless the taxpayer can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the city of Battle Ground of the amount of tax so determined by the jeopardy tax assessment, together with any penalty and/or interest, and the total of such amounts shall thereupon become immediately due and payable. (Ord. 02-009 § 39, 2002: Ord. 96-818 § 1, 1996: Ord. 566 § 10, 1986)
3.40.100 Overpayment or underpayment of tax.
If, upon application by a taxpayer for a refund or an audit of his records, or upon any examination of the returns or records by the city of Battle Ground, it is determined that within five years immediately preceding receipt of the application from the taxpayer for a refund, or an audit, or in the absence of such application, within five years immediately preceding the commencement by the city treasurer/finance director of such examination:
A. A tax or other fee has been paid in excess of that properly due, the total excess paid over all amounts due to the city within such period of five years shall be credited to the taxpayer’s account or shall be credited to the taxpayer at the taxpayer’s option. No refund or credit shall be allowed with respect to any excess amounts paid more than five years before the date of such application or examination.
B. A tax or other fee has been paid which is less than that properly due, or no tax or other fee has been paid, the city treasurer/finance director shall mail a statement to the taxpayer showing the balance due, including the tax amount or penalty assessment and fees, and it shall be a separate, additional violation of the provisions of this chapter, both civil and criminal, if the taxpayer fails to make payment in full within ten calendar days of such mailing. (Ord. 02-009 § 40, 2002: Ord. 566 § 11, 1986)
3.40.110 Failure to make return.
If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the city treasurer/finance director is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed under the provisions of this chapter, and shall notify the taxpayer by mail of the amount so determined, which amount shall thereupon become immediately due and payable. (Ord. 02-009 § 41, 2002: Ord. 566 § 12, 1986)
3.40.120 Tax additional to others.
The tax levied by this chapter shall be in addition to any license fee or tax imposed or levied under any law or any other ordinance of the city of Battle Ground, except as otherwise expressly provided in this chapter. (Ord. 566 § 13, 1986)
3.40.130 Taxes, penalties and fees constitute debt to municipality.
Any tax due and unpaid under this chapter and all penalties or interest shall constitute a debt to the city of Battle Ground, a municipal corporation, and may be collected by court proceedings the same as any other debt in like amount, but shall be in addition to all other existing remedies. (Ord. 566 § 14, 1986)
3.40.140 Limitations on right of recovery.
The right of recovery by the city from the taxpayer for any tax provided under this chapter shall be outlawed after the expiration of five calendar years from the date such tax became due. The right of recovery against the city because of overpayment of tax by any taxpayer shall be outlawed after the expiration of five calendar years from the date such payment was made. (Ord. 566 § 15, 1986)
3.40.150 Violation—Penalties.
A. Except as otherwise provided within this chapter, any person, association or organization violating or failing to comply with any of the provisions of this chapter, upon conviction thereof, is guilty of a misdemeanor, and any person, association or organization so convicted shall be punished by a fine not to exceed five hundred dollars, or by imprisonment in the county jail not to exceed ninety days, or both such fine and imprisonment.
B. Any taxpayer who engages in, or carries on, any gambling activity subject to tax under this chapter, without having complied with the provisions of this chapter or in violation of any of the provisions of this chapter, shall be guilty of a violation of this chapter for each day or portion of such day during which the gambling activity is carried on. (Ord. 566 § 16, 1986)
3.40.160 Revenue.
Any revenue collected from the taxes imposed under this chapter shall be used primarily by the city of Battle Ground for the purpose of the enforcement of the provisions of RCW Chapter 9.46, the rules and regulations of the Washington State Gambling Commission and this chapter. (Ord. 566 § 17, 1986)