Chapter 3.40
GAMBLING ACTIVITIES1
Sections:
3.40.010 Activities authorized.
3.40.020 Punchboards and pull-tabs – Permitted.
3.40.030 Punchboards and pull-tabs – Tax imposed.
3.40.040 Tax on gambling activities.
3.40.050 Administration – Collection.
3.40.060 Declaration of intent to conduct activity.
3.40.070 When due – Delinquency.
3.40.010 Activities authorized.
The city authorizes bona fide charitable or nonprofit organizations to conduct bingo games, raffles, fund-raising events, amusement games and punchboards or pull-tabs, 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.
(Ord. No. 90-44, § 1, 3-6-90; Ord. No. 90-15, § 1, 1-30-90. Code 2001 § 14-141.)
State law references: Definition, RCW 9.46.0201; use of facilities, RCW 9.46.113.
3.40.020 Punchboards and pull-tabs – Permitted.
The city authorizes any person operating an established business primarily engaged in the selling of food or drink for consumption on the premises to conduct social card games and to utilize punchboards and pull-tabs as a commercial stimulant to such business when licensed and utilized or operated pursuant to the provisions of Chapter 9.46 RCW.
(Ord. No. 90-44, § 2, 3-6-90; Ord. No. 90-15, § 2, 1-30-90. Code 2001 § 14-142.)
3.40.030 Punchboards and pull-tabs – Tax imposed.
The city imposes a tax on punchboard and pull-tab activities as specified in FWRC 3.40.040 with the receipts therefrom going to the city; provided, that the operation of punchboard and pull-tabs are subject to the following conditions:
(1) Chances may only be sold to adults;
(2) The price of a single chance may not exceed $1.00;
(3) No punchboard or pull-tab license may award as a prize upon a winning number or symbol being drawn the opportunity of taking a chance upon any other punchboard or pull-tab;
(4) All prizes available to be won must be described on an information flare. All merchandise prizes must be on display within the immediate area of the premises in which any such punchboard or pull-tab is located. Upon a winning number or symbol being drawn, a merchandise prize must be immediately removed, from the display and awarded to the winner. All references to cash or merchandise prizes, with a value over $20.00, must be removed from the information flare when won, or such omission shall be deemed a fraud for the purposes of this chapter; and
(5) When any person wins money or merchandise from any punchboard or pull-tab over an amount determined by the commission, every licensee under this section shall keep a public record of the award for at least 90 days containing such information as the State Gambling Commission deems necessary.
(Ord. No. 97-301, § 1(A), 10-21-97; Ord. No. 90-15, § 3, 1-30-90. Code 2001 § 14-143.)
3.40.040 Tax on gambling activities.
(1) In accordance with RCW 9.46.110, there is levied upon all persons a tax on every gambling activity permitted by this chapter at the following rates:
(a) Any bingo or raffle activity shall be taxed at a rate of five percent of the gross receipts from a bingo game or raffle less the amount awarded as cash or merchandise prizes;
(b) An amusement game shall be taxed only at a rate sufficient to pay the actual costs of enforcement of the provisions of this chapter and Chapter 9.46 RCW and such taxation shall not exceed two percent of the sum of the gross receipts from the amusement game less the amount awarded as prizes;
(c) Any punchboard or pull-tab activity for bona fide charitable or nonprofit organizations shall be at a rate of 10 percent on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes. Taxation of punchboards or pull-tabs for commercial stimulant operators shall be at a rate of three percent on gross receipts from the operation of the games;
(d) Any social card game at a rate of 10 percent of the annual gross receipts;
(e) Fund-raising activities at the applicable rates specified above.
Provided, no tax shall be imposed pursuant to this section on bingo, amusement games or fund-raising activities when such activities or any combination thereof are conducted by a “bona fide charitable or nonprofit organization” as defined in RCW 9.46.0209, which organization has not paid operating or management personnel and has gross receipts from bingo, amusement games, or fund-raising activities or any combination thereof not exceeding $5,000 per year less the amount awarded as cash or merchandise prizes. No tax shall be imposed on the first $10,000 of gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by any bona fide or charitable organization.
(2) The city clerk is instructed and authorized to adopt appropriate reporting requirements, to ensure the effective administration of license holders exempt from the payment of such tax.
(Ord. No. 10-663, § 1, 6-15-10; Ord. No. 10-662, § 1, 6-1-10; Ord. No. 02-422, § 1, 9-17-02; Ord. No. 98-329, § 1, 12-1-98; Ord. No. 97-301, § 1(B), 10-21-97; Ord. No. 96-279, § 1(A), 12-3-96; Ord. No. 90-44, § 3, 3-6-90; Ord. No. 90-15, § 4, 1-30-90. Code 2001 § 14-144.)
3.40.050 Administration – Collection.
The administration and collection of the tax imposed by this chapter shall be by the city clerk and pursuant to the rules and regulations of the State Gambling Commission.
(Ord. No. 90-15, § 5, 1-30-90. Code 2001 § 14-145.)
3.40.060 Declaration of intent to conduct activity.
For the purpose of identifying who shall be subject to the tax imposed by this chapter, any bona fide charitable or nonprofit corporation intending to conduct or operate any bingo game raffle or amusement game which requires licensing as provided in and authorized by Chapter 9.46 RCW shall, prior to commencement of any 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. Thereafter, for any period covered by such state license or any renewal thereof, any such licensed bona fide charitable or nonprofit corporation shall, on or before the fifteenth day of the month following the end of the period in which the tax accrued, file with the city clerk a sworn statement, on a form to be provided and prescribed by the city clerk for the purpose of ascertaining the tax due for the preceding reporting period.
(Ord. No. 96-279, § 1(B), 12-3-96; Ord. No. 96-268, § 1(A), 6-18-96; Ord. No. 90-15, § 6, 1-30-90. Code 2001 § 14-146.)
3.40.070 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. The reporting period shall be as follows:
(a) For those gambling establishments whose total tax collection from gambling activities during the preceding year were $10,000 or less, the reporting period shall be quarterly.
(b) For those gambling establishments whose total tax collection from gambling activities during the preceding year were in excess of $10,000, the reporting period shall be monthly.
(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 next succeeding the reporting period in which the tax accrued, a 10 percent penalty, with a minimum penalty of $5.00.
(b) If filed prior to the last day of the second month next 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.
(d) Failure to make payment by the last day of the second month succeeding the reporting period in which the tax accrued shall be both a criminal and civil violation of this section.
(Ord. No. 97-286, § 1, 1-7-97; Ord. No. 96-279, § 1(C), 12-3-96; Ord. No. 96-268, § (B), 6-18-96; Ord. No. 91-101, § 1, 6-4-91; Ord. No. 90-15, § 7, 1-30-90. Code 2001 § 14-147.)
3.40.080 Financial records.
It shall be the responsibility of all officers, directors and managers of any corporation conducting any gambling activities subject to taxation under this chapter to make available at all reasonable times such financial records as the city clerk may require in order to determine full compliance with this chapter.
(Ord. No. 90-15, § 8, 1-30-90. Code 2001 § 14-148.)
Cross reference: Licenses and business regulations, FWRC Title 12.
State law references: Bingo, RCW 9.46.0205; authority, RCW 9.46.0321; taxation authorized, RCW 9.46.110.