Chapter 3.20 GAMBLING TAX

9.46.250 Gambling property or premises – Common nuisances, abatement – Termination of mortgage, contract, or leasehold interests, licenses – Enforcement.

9.46.260 Proof of possession as evidence of knowledge of its character.

9.46.270 Chapter as exclusive authority for taxation of gambling activities.

9.46.293 Fishing derbies exempted.

9.46.295 Licenses as legal authority to engage in activities for which issued – Exception.

9.46.350 Civil action to collect fees, interest, penalties, or tax – Writ of attachment – Records as evidence.

9.46.400 Wildlife raffle.

(Ord. 98-111 § 2).

3.20.020 Nuisance defined.

The conducting of any amusement game, bingo game, raffle or other activity regulated by this chapter, without a license or beyond the scope of a license as required under state law or the conduct of any gambling activity prohibited by this chapter, is declared a common nuisance and shall be subject to abatement by injunction or as otherwise provided by law. All gambling devices in such cases are common nuisances and shall be subject to seizure immediately upon detection and to confiscation and destruction by order of a superior court or district court, except when in the possession of law enforcement officers enforcing this chapter. No property right in any such gambling device shall exist or be recognized in any person, except the possessory right of law enforcement officers in enforcing this chapter. (Ord. 98-111 § 3).

3.20.030 Amount.

A. There is levied on all persons, associations and organizations conducting or operating within the city of Edgewood any of the activities listed below, a tax in the following amounts to be paid to the city of Edgewood:

	Activity	Tax Rate
1.	Conduct of any bingo game or raffle	Five percent of the gross revenue received after the amount paid for prizes or as prizes is deducted
2.	Conduct or operation of any amusement game	Two percent of the gross revenue received after the amount paid as prizes is deducted
3.	Operation of punch boards as a commercial stimulant	Three percent of the gross revenue received
4.	Operations of pull tabs as a commercial stimulant	Five percent of the gross revenue received
5.	Operation of punch boards and pull tabs by bona fide charitable or nonprofit organization	Five percent of the gross revenue received after the amount paid for prizes or as prizes is deducted
6.	Operation of a card room for social card games as a commercial stimulant upon any premises	Twenty percent of the gross revenue received from such card games per year exceeding $10,000

B. Provided, however, that the following exemptions shall apply to the tax levied by subsection (A) of this section:

1. No tax shall be imposed on bingo or amusement games when such activities or any combination thereof are conducted by a bona fide charitable or nonprofit organization which organization has no paid operating or management personnel and has gross receipts from bingo or amusement games, or a combination thereof, not exceeding $5,000 per year, less the amount awarded as cash or merchandise prizes.

2. No taxes shall be imposed on the first $10,000 of gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by a bona fide charitable or nonprofit organization.

C. Pursuant to RCW 9.46.113, the city shall use the revenue collected from the taxes levied on the authorized gambling activities in this section primarily for the purpose of enforcement of the provisions of this chapter by the city’s police department. (Ord. 00-158 § 1; Ord. 98-111 § 4).

3.20.040 Due in quarterly installments.

Except as otherwise provided herein, the taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter, shall be due and payable in quarterly installments, and remittance therefor, together with return forms, shall be made to the city on or before the last day of the month succeeding the quarterly period in which the tax accrued (i.e., on January 31st, April 30th, July 31st, and October 31st of each year. (Ord. 98-111 § 5).

3.20.050 Exceptions to quarterly installments.

A. Whenever any person, association or organization conducting or operating an activity taxable under this chapter for a period of more than four consecutive weeks, or quits business, sells out or otherwise disposes of its business, or terminates the business, any tax due under this chapter shall become due and payable, and the taxpayer shall, within 10 days thereafter, make a return and pay the tax due.

B. It is recognized that some bona fide charitable or bona fide nonprofit organization taxpayers will be conducting or operating taxable activities only upon an occasional and random basis. When such taxpayer conducts only one taxable activity during any calendar quarter, and the duration of each such activity does not exceed 15 consecutive calendar days, and the gross receipts therefrom do not exceed $1,500 per quarter, that taxpayer need not remit the tax due with a return therefor until on or before January 31st of the year following that year in which the activity took place. The returns shall be made upon a special form to be supplied by the city clerk.

C. Whenever it appears to the city clerk that the collection of taxes from any person, association or organization may be in jeopardy, that officer, after not less than five days’ notice to the taxpayer, is authorized to require that taxpayer to remit taxes and returns at such shorter intervals than quarterly or annually, as that officer deems appropriate under the circumstances. (Ord. 98-111 § 6).

3.20.060 Administration and collection.

A. Administration and collection of the taxes imposed by this chapter shall be the responsibility of the city clerk. 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 and affirm that the information given in the return is true, accurate and complete.

B. The city clerk is authorized, but not required, to mail to taxpayers forms for returns. 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 clerk shall make forms available to the public in reasonable numbers in the City Hall during regular business hours.

C. In addition to the return form, a copy of the taxpayer’s quarterly report to the Washington State Gambling Commission required by WAC Title 230 for the period in which the tax accrued and monthly income summary sheets shall accompany remittance of the tax amount due. (Ord. 98-111 § 7).

3.20.070 Method of payment.

Taxes payable under this chapter shall be remitted to the city clerk 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 clerk be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return, a copy of quarterly report to the Washington State Gambling Commission, and monthly income summary sheets shall be filed in the office of the city clerk after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 98-111 § 8).

3.20.080 Penalty fee for delinquency.

A. If full payment of any tax or fee due under this chapter is not received by the city clerk on or before the due date, there shall be added to the amount due a penalty fee as follows:

1. One to 15 days late, 10 percent of tax due, with a minimum penalty of $5.00;

2. Fifteen to 30 days late, 15 percent of tax due, with a minimum penalty of $10.00; or

3. Greater than 30 days late, 20 percent of tax due, with a minimum penalty of $15.00.

B. In addition to this penalty, the city clerk may charge the taxpayer interest at 12 percent per annum on all taxes, penalties and fees. (Ord. 98-111 § 9).

3.20.090 Filing of notice and intent.

A. In order that the city of Edgewood may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the city clerk a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by that officer, together with a copy of the license issued therefor by the Washington State Gambling Commission.

B. The filing shall be made not later than 10 days prior to conducting or operating the taxable activity.

C. 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 taxing chapter only.

D. Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 98-111 § 10).

3.20.100 Records required.

Each person, association or organization engaging in an activity taxable under this chapter shall maintain records respecting that activity which truly, completely and accurately discloses all information necessary to determine the taxpayer’s tax liability under this chapter during each base tax period. Such records shall be kept and maintained for a period of not less than three years. In addition, all information and items required by the Washington State Gambling Commission under WAC Title 230, and the United States Internal Revenue Service respecting taxation, shall be kept and maintained for the periods required by those agencies. (Ord. 98-111 § 11).

3.20.110 Records inspection.

For the purpose of enforcing the provisions of this chapter, all books, records and other items required to be kept and maintained hereunder shall be subject to, and immediately made available for, inspection and audit, at the place where such records are kept, upon demand by the city clerk or his or her designees. (Ord. 98-111 § 12).

3.20.120 Records kept outside jurisdiction.

When a taxpayer does not keep all of the books, records or items required to be kept or maintained under EMC 3.20.110, the taxpayer shall either:

A. Produce all of the required books, records or items within the city for such inspection within 15 days following a request of the city clerk that he or she do so; or

B. Bear the actual cost of inspection by the city clerk or his or her 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 clerk the estimated cost thereof, including but not limited to, roundtrip fare by the most rapid means, lodging, meals and incidental expenses. The actual amount due or to be refunded for expenses shall be determined following the examination of the records. (Ord. 98-111 § 13).

3.20.130 Overpayment or underpayment.

If, upon application by a taxpayer for a refund or for an audit of his or her records, or upon any examination of the returns or records of any taxpayer by the city, it is determined by the city clerk that within three years immediately preceding receipt by the city clerk of the application by the taxpayer for a refund, or an audit, or, in the absence of such an application, within three years immediately preceding the commencement by the city clerk of the examination:

A. A tax or other fee has been paid in excess of that properly due, the total excess paid over the amounts due to the city within the three-year period 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 granted for any period of time prior to three years before the date of the 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 clerk shall mail a statement to the taxpayer showing the balance due, including the tax amount or penalty assessments and fees, and it shall be a separate, additional violation of this chapter, both civil and criminal, if the taxpayer fails to make payment in full within 10 calendar days of such mailing. (Ord. 98-111 § 14).

3.20.140 Failure to file return.

If any taxpayer fails, neglects or refuses to make and file his or her return as and when required under this chapter, the city clerk is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed under the provisions of this chapter, and to notify by mail the taxpayer of the amount so determined, which amount shall thereupon become the tax and penalty and/or interest and shall become immediately due and payable. (Ord. 98-111 § 15).

3.20.150 Additional to others.

The tax levied in this chapter is additional to any license fee or tax imposed or levied under any law or other ordinance of the city of Edgewood, Washington. (Ord. 98-111 § 16).

3.20.160 Authority of city clerk.

The city clerk shall have the power, and it shall be his or her duty, from time to time, to adopt, publish, and enforce rules and regulations not inconsistent with this chapter and the general law, for the purpose of carrying out the provisions of this chapter, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 98-111 § 17).

3.20.170 Unpaid taxes a debt to the city.

Any tax due and unpaid under this chapter, and all penalties or fees, constitute a debt to the city and may be collected by referral to a collection agency in accordance with Chapter 3.55 EMC and RCW 19.16.500, or court proceedings the same as any other debt in like amount which is in addition to all other existing remedies. In any such action, the prevailing party shall be entitled to recover its reasonably incurred costs, expenses, and fees, including attorneys’ fees. (Ord. 23-652 § 2 (Exh. A); Ord. 98-111 § 18).

3.20.180 Appeals.

Any person aggrieved by a decision or determination of the finance director shall have the right to appeal such determination to the city council by filing a notice of appeal within 10 days after the determination is made, and the city council has the power to affirm, disaffirm or modify such administrative determination consistent with the terms of this chapter. (Ord. 98-111 § 19).

3.20.190 Violation – Penalty.

A. Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the city clerk pursuant thereto shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine not to exceed $1,000, or by imprisonment for a term not exceeding 90 days, or by both such fine and imprisonment.

B. Each day during which a gambling activity subject to a tax under this chapter is engaged in or carried on without having complied with the provisions of this chapter shall constitutes a separate violation of this chapter.

C. Subsections (A) and (B) notwithstanding nothing contained herein shall prevent the City from seeking any remedy otherwise available at law or in equity. (Ord. 98-111 § 20).

3.20.200 Copies on file.

Pursuant to RCW 35A.12.140, one copy of the statutes adopted be reference herein have been and are now on file with the city clerk and are available for examination and use by the public. (Ord. 98-111 § 21).