Chapter 3.32
GAMBLING AND AMUSEMENT TAX*
Sections:
3.32.020 Persons subject to tax--Tax rates.
3.32.025 Exemption for charitable or nonprofit organizations.
3.32.030 Tax to be computed and paid quarterly--Exceptions.
3.32.040 Administration and collection of tax.
3.32.060 Failure to make timely payment of tax or fee.
3.32.070 Notice of intention to engage in activity.
3.32.080 Records--Keeping required--Availability for inspection.
3.32.090 Records--Not kept within jurisdiction--Inspection procedure.
3.32.100 Records--Noncooperation--Jeopardy fee--Assessed.
* For further provisions on punchboards, see Chapter 9.38 of this code.
3.32.110 Records--Noncooperation--Jeopardy fee--Deemed prima facie correct--Notice.
3.32.120 Overpayment or underpayment of tax.
3.32.130 Failure to make return.
3.32.140 Tax additional to others.
3.32.150 Taxes, penalties and fees constitute debt to city.
3.32.160 Limitation on right to recovery.
3.32.170 Each day a separate violation.
3.32.190 Compliance with state provisions.
3.32.010 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, Chapter 230 Washington Administrative Code (WAC), unless otherwise specifically provided or unless the context in which they are used in this chapter clearly indicates that they may be given some other meaning. (Ord. 578 §1).
3.32.020 Persons subject to tax--Tax rates.
There is levied, upon all persons, associations, and organization conducting or operating within this jurisdiction any of the activities listed below, a tax in the following amounts to be paid to the city subject to the exclusions and exemptions set forth in this code or RCW 9.46, as now existing or hereafter amended.
A. Bingo. In the amount of the gross receipts therefrom, less the amount of money paid in cash and for merchandise actually awarded as prizes during the taxable period, multiplied by the rate of five percent;
B. Raffles. In the amount of the gross receipts therefrom, less the amount of money paid in cash and for merchandise actually awarded as prizes during the taxable period, multiplied by the rate of five percent;
C. Amusement games. In the amount of the gross receipts therefrom, less the amount of money paid in cash and for merchandise actually awarded as prizes during the taxable period, multiplied by the rate of two percent;
D. Fishing derbies. In the amount of the gross receipts therefrom, less the amount of money paid in cash and paid for merchandise actually awarded as prizes during the taxable period, multiplied by the rate of five percent;
E. Punchboards or Pull Tabs. In the amounts established herein upon the gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes:
1. As to such activities operated by bonafide charitable or nonprofit organizations recognized as such by the state of Washington, in the amount of six percent.
2. As to all other operators, who shall be deemed to be utilizing them as commercial stimulants, the amount of six percent.
F. Card Playing. In the amount of ten percent of the gross receipts received as fees charged persons for the privilege of playing in card games. (Ord. 985 §1, 1997: Ord. 644 §1, 1997: Ord. 602, 1976: Ord. 578 §2).
3.32.025 Exemption for charitable or nonprofit organizations.
A. No tax shall be collected on bingo or amusement game revenues generated by any bona fide charitable or nonprofit organization recognized as such by the Gambling Commission of the State of Washington pursuant to applicable law which
1. Has no paid operating or management personnel; and
2. Has total annual gross receipts, after deducting the amount awarded as cash or merchandise prizes of less than five thousand dollars from these two games.
B. No tax shall be collected on the first ten thousand dollars of gross receipts less the amount awarded as cash or merchandise prizes generated from raffles carried out by any bona fide charitable or nonprofit organization recognized as such by the state of Washington. (Ord. 985 §2, 1997).
3.32.030 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 calendar quarter year. The tax 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 next succeeding the quarterly period in which the tax accrued, that is, on January 31st, April 30th, July 31st, and October 31st of each year; provided that the following exceptions to this payment schedule shall be allowed or required:
A. Except as provided in subsection B of this section, 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 two consecutive months, 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 such taxpayer shall, within ten 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. Except as provided in subsection C of this section, when such a taxpayer conducts only one taxable activity during any calendar quarter, the duration of each such activity does not exceed seven consecutive calendar days, and the gross receipts therefrom do not exceed three hundred dollars 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. Such returns shall be made upon a special from to be supplied by the city clerk-treasurer.
C. Whenever it appears to the city clerk-treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the clerk, after not less than ten 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 the clerk shall deem appropriate under the circumstances. (Ord. 578 §3).
3.32.040 Administration and collection of tax.
Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the city clerk-treasurer. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the city council. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete. The city clerk-treasurer shall make forms available to the public in reasonable numbers in the clerk’s office 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 230-08 for the period in which the tax accrued, shall accompany remittance of the tax amount due. (Ord. 578 §4).
3.32.050 Method of payment.
Taxes payable under this chapter shall be remitted to the city clerk-treasurer 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-treasurer be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return, and the copy of the quarterly report to the Washington State Gambling Commission, shall be filed in the office of the clerk, after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 578 §5).
3.32.060 Failure to make timely payment of tax or fee.
A. If full payment of any tax or fee due under this chapter is not received by the city clerk-treasurer on or before the date due, there shall be added to the amount due a penalty fee as follows:
1. 1--10 days late 10% of tax due,
2. 11--20 days late 15% of tax due,
3. 21--31 days late 20% of tax due,
4. 32--60 days late 25% of tax due;
but in no event shall the penalty amount be less than ten dollars. In addition to this penalty, the city clerk-treasurer shall charge the taxpayer interest of one percent of all taxes and fees due for each thirty-day period, or portion thereof, that said amounts are past due.
B. Failure to make payment in full of all tax amounts and penalties within sixty days following the day the tax amount initially became due shall be both a civil and a criminal violation of this section. (Ord. 578 §6).
3.32.070 Notice of intention to engage in activity.
For purposes of administration of this chapter and in order that the city may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the city clerk-treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the city clerk-treasurer 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. Failure to file on time shall not excuse any person, association or organization from any tax liability. (Ord. 578 §7).
3.32.080 Records--Keeping required--Availability for inspection.
Each person, association or organization engaging in an activity taxable 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 hereunder 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 230-08, and the United States Internal Revenue Service, respecting taxation, shall be kept and maintained for the periods required by those agencies. All books records and other items required to be kept and maintained under this section shall be subject to, and immediately made available for, reasonable inspection and audit at any time, with or without notice, at the place where such records are kept, upon demand by the city clerk-treasurer or her designees, for the purpose of enforcing the provisions of this chapter. (Ord. 578 §8(part)).
3.32.090 Records--Not kept within jurisdiction--Inspection procedure.
Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under Section 3.32.080 in this jurisdiction so that the city clerk-treasurer may examine them conveniently, the taxpayer shall either:
A. Produce all of the required books, records or items within this jurisdiction for such inspection within five days following a request of the city clerk-treasurer that he do so; or
B. Bear the actual cost of inspection by the city clerk-treasurer 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-treasurer the estimated cost thereof, including but not limited to round-trip 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 examination of the records. (Ord. 578 §8(part)).
3.32.100 Records--Noncooperation--Jeopardy fee--Assessed.
A taxpayer who fails, neglects or refuses to produce such books and records within or without this jurisdiction, in addition to being subject to other civil and criminal penalties provided by this chapter, shall be subject to a jeopardy fee or tax assessment by the city clerk-treasurer. (Ord. 578 §8 (part)).
3.32.110 Records--Noncooperation--Jeopardy fee--Deemed prima facie correct--Notice.
The penalty fee or jeopardy assessment provided for in Section 3.32.100 shall be deemed prima facie correct and shall be the amount of fee or tax owing the city by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the city clerk-treasurer of the amount of tax so determined by jeopardy assessment, together with any penalty and interest, and the total of such amounts shall thereupon become immediately due and payable. (Ord. 578 §8(part)).
3.32.120 Overpayment or underpayment of tax.
If, upon application by a taxpayer for a refund or for an audit of his records, or upon any examination of the returns or records of any taxpayer, it is determined by the city clerk-treasurer that within the three years immediately preceding receipt by the clerk of the application by the taxpayer for a refund or an audit, or, in the absence of such an application, within the three years immediately preceding the commencement by the city clerk 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 three 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 taxes or other fees paid more than three 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 clerk-treasurer 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 ten calendar days of such mailing. (Ord. 578 §9).
3.32.130 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 clerk-treasurer is authorized to determine the amount of tax payable, together with any penalty and interest assessed under the provisions of the chapter, and by mail to notify such taxpayer of the amount so determined, which amount shall thereupon become the tax, penalty and interest, and shall become immediately due and payable. (Ord. 578 §10).
3.32.140 Tax additional to others.
The tax levied in this chapter shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the city, except as herein otherwise expressly provided. (Ord. 578 §11).
3.32.150 Taxes, penalties and fees constitute debt to city.
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city and may be collected by court proceedings, the same as any other debt in like amount, which shall be in addition to all other existing remedies. (Ord. 578 §12).
3.32.160 Limitation on right to recovery.
A. The right of recovery by the city from the taxpayer of any tax provided under this chapter shall be outlawed after the expiration of three calendar years from the date said tax becomes due.
B. The right of recovery against the city because of overpayment of tax by any taxpayer shall be outlawed after the expiration of three calendar years from the date such payment was made. (Ord. 578 §13).
3.32.170 Each day a separate violation.
Any taxpayer who engages in, or carries on, any gambling activity subject to a tax under this chapter without having complied with the provisions of this chapter shall be guilty of a violation of this chapter for each day during which the gambling activity is carried on. (Ord. 578 §14).
3.32.180 Violation--Penalty.
Any person violating any of the provisions of this chapter shall be subject to the following penalty or punishments:
A. In the event of a first violation within any six month period, be issued a notice of infraction and, upon a finding of committed, be subject to a penalty of up to two hundred fifty dollars.
B. In the event of a second violation within any twelve month period, be issued a notice of infraction and, upon a finding of committed, be subject to a penalty of up to five hundred dollars, one hundred fifty dollars of which may be neither suspended nor deferred.
C. In the event of a third and subsequent violation within any twelve month period, be subject to issuance of a criminal citation, and upon conviction, be guilty of a misdemeanor and, subject to punishment by a fine not to exceed one thousand dollars, two hundred fifty dollars of which shall be neither suspended nor deferred, by imprisonment in jail not to exceed ninety days, or by both such fine and imprisonment. (Ord. 985 §3, 1997).
3.32.190 Compliance with state provisions.
A. In recognition of the preemption of the regulation of gambling by the state of Washington, the provisions of this chapter shall be interpreted so as to be consistent with and in compliance with the provisions of Chapter 9.46 of the Revised Code of Washington, which, to the extent inconsistent with or supplementary to the provisions of this chapter, shall be deemed controlling and adopted by reference.
B. All operations carried out under this chapter by a licensee shall fully comply with such laws of this state and such rules and regulations as may be promulgated by the Washington State Gambling Commission. (Ord. 985 §4, 1997)