Chapter 5.40
GAMBLING TAXES1
Sections
5.40.020 Administration and collection.
5.40.030 Declaration of intent.
5.40.040 Repealed.
5.40.050 Payment – Cardrooms, punchboards and pulltabs.
5.40.070 Repealed.
5.40.080 Records to be open for inspection.
5.40.090 State license – Copy filing and notification of change.
5.40.100 Activities authorized.
5.40.110 When due – Delinquency.
5.40.005 Definitions.
The state statute definitions that are adopted by reference at DMMC 9.48.010 are applicable to this chapter. [Ord. 1305 § 1, 2002.]
5.40.010 Taxes imposed.
In accordance with chapter 9.46 RCW as presently constituted or as may be subsequently amended, there is levied upon all persons who have been duly licensed by the Washington State Gambling Commission to conduct or operate:
(1) Public cardrooms operated as a commercial stimulant, a tax of nine percent of the gross receipts shall be imposed; except those cardrooms that receive an initial business license prior to August 31, 2017, a tax of one percent of the gross receipts in the year 2017 shall be imposed; four percent of the gross receipts in the year 2018 shall be imposed; a tax of seven percent of the gross receipts in the year 2019 shall be imposed; and a tax of nine percent of the gross receipts shall be imposed thereafter. Transfers of ownership or change of business name or location will not affect the date of initial business license issuance used to calculate the tax percentage.
(2) Punchboards and pulltabs, a tax of five percent of the gross receipts. [Ord. 1679 § 1, 2017: Ord. 1670 § 1, 2017: Ord. 1549-A § 1, 2012: Ord. 1549 § 1, 2012: Ord. 1305 § 4, 2002: Ord. 361 § 1, 1974.]
5.40.020 Administration and collection.
The administration and collection of the tax imposed by this chapter shall be by the city clerk or designee and pursuant to the rules and regulations of the Washington State Gambling Commission. The city clerk may adopt and distribute such rules and regulations as may be reasonably necessary to enforce the provisions of this chapter. [Ord. 1305 § 5, 2002: Ord. 361 § 2, 1974.]
5.40.030 Declaration of intent.
For the purpose of identifying who shall be subject to the tax imposed by this chapter, a person intending to conduct or operate any gambling activity authorized by chapter 9.46 RCW, as presently constituted or as may be subsequently amended, shall, prior to commencement of such activity, file with the city clerk a sworn declaration of intent to conduct or operate such activity, together with a copy of the license issued in accordance with chapter 9.46 RCW, as presently constituted or as may be subsequently amended. [Ord. 1305 § 6, 2002: Ord. 361 § 3, 1974.]
5.40.040 Payment – Card games and cardrooms.
Repealed by Ord. 1305. [Ord. 366 § 1(a), 1974: Ord. 361 §§ 4, 5, 1974.]
5.40.050 Payment – Cardrooms, punchboards and pulltabs.
The tax imposed by DMMC 5.40.010(1) and (2) shall be paid to the city clerk upon the filing of a report of gambling moneys received by a license holder to the Washington State Gambling Commission, and a duplicate copy of such report shall be filed simultaneously with the city clerk along with the payment of the tax thereon. [Ord. 1305 § 7, 2002: Ord. 366 § 1(b), 1974: Ord. 361 § 5, 1974.]
5.40.060 Violation – Penalty.
(1) No person shall fail or refuse to pay the tax as required in DMMC 5.40.050, or to willfully disobey a rule promulgated by the city clerk under this chapter.
(2) A violation of or failure to comply with this section is a class 1 civil infraction.
(3) A penalty imposed is in addition to the tax required. Officers, directors, and managers of an organization conducting gambling activities are jointly and severally liable for the payment of the tax and for the payment of a penalty imposed under this section. [Ord.
1009 § 39, 1993: Ord. 610 § 10, 1984: Ord. 361 § 6, 1974.]
5.40.070 Contract with county.
Repealed by Ord. 1305. [Ord. 361 § 7, 1974.]
5.40.080 Records to be open for inspection.
It shall be the responsibility of all officers, directors, and managers of an organization conducting gambling activities subject to taxation under this chapter to make available at all reasonable times such membership and financial records as the city manager, his authorized representative, or law enforcement representative of the city may require in order to determine full compliance with this chapter. [Ord. 366 § 1(c), 1974: Ord. 361 § 8, 1974.]
5.40.090 State license – Copy filing and notification of change.
A person doing business in the city that receives a license from the state to engage in gambling activities authorized by state law shall, upon receipt of the license, immediately file a copy of the license with the city clerk and shall promptly notify the city clerk of any change, suspension, or action pertaining to the license. [Ord. 366 § 1(d), 1974: Ord. 361 § 9a, 1974.]
5.40.100 Activities authorized.
Any license issued under the authority of state law, chapter 9.46 RCW, to engage in any legal gambling activity shall be legal authority to engage in the gambling activities for which the license was issued throughout the city. Specifically:
(1) The city authorizes bona fide charitable or nonprofit organizations as defined by Section 501(c)(3) of the Internal Revenue Code to conduct bingo games, raffles, fund-raising events, amusement games and punchboards or pulltabs, and to allow their premises and facilities to be used by only members, their guests, and members of a chapter or unit organized under the same state, regional, or national charter or constitution, to play social card games authorized by the commission, when licensed, conducted or operated pursuant to the provisions of chapter 9.46 RCW.
(2) The city authorizes public cardrooms operated as a commercial stimulant, when licensed, conducted or operated pursuant to the provisions of chapter 9.46 RCW.
(3) The city authorizes punchboards and pulltabs, when licensed, conducted or operated pursuant to the provisions of chapter 9.46 RCW. [Ord. 1305 § 2, 2002.]
5.40.110 When due – Delinquency.
(1) The tax imposed by this chapter shall be due and payable and remitted with such return, on a form prescribed by the city clerk, on or before the last day of the month succeeding the reporting period in which the tax accrued.
(2) For each reporting period, if the tax return or payment is not made by the due date thereof, interest and penalty shall be added as follows:
(a) If filed on or before the fifteenth day of the second month succeeding the reporting period in which the tax accrued, a 10 percent penalty, with a minimum penalty of $5.00.
(b) If filed after the fifteenth day of the second month succeeding the reporting period in which the tax accrued, a 15 percent penalty with a minimum penalty of $10.00.
(c) Interest shall accrue, from the date such tax is due until paid in full, at a rate of 12 percent per annum, compounded daily, on the principal interest and penalties imposed pursuant to this subsection.
(3) Failure to make payment by the last day of the second month succeeding the reporting period in which the tax accrued shall be a violation of this chapter. [Ord. 1305 § 3, 2002.]
For statutory provisions on gambling, see chapter 9.46 RCW.