Chapter 5.40
GAMBLING
Sections:
5.40.020 Tax levied on certain activities—Rates.
5.40.030 Tax—Quarterly computation—Exceptions.
5.40.040 Tax—Administration and collection—Forms.
5.40.050 Tax—Method of payment.
5.40.060 Tax—Failure to pay—Penalty.
5.40.070 Tax—Declaration of intent required.
5.40.090 Tax—Overpayment or underpayment.
5.40.100 Tax—Failure to make return.
5.40.110 Tax—Additional to other fees.
5.40.120 City treasurer—Rulemaking authority.
5.40.130 Unpaid taxes deemed debt to city.
5.40.010 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 Executive Session, and Chapter 9.46 RCW, each as amended, and under the rules of the Washington State Gambling Commission, WAC Title 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. 1721-11 § 7 (part), 2011: Ord. 869 § 1, 1977)
5.40.020 Tax levied on certain activities—Rates.
There is levied upon all persons, associations and organizations conducting or operating within this jurisdiction any of the activities listed below a tax in the following amounts to be paid to the city:
A. Bingo and raffles in the amount of five percent of the gross receipts of a bingo game or raffle less the amount awarded as cash or merchandise prizes.
B. Amusement games in the amount of two percent of the gross receipts less the amount awarded as prizes. Taxation of amusement games shall only be in an amount sufficient to pay the actual cost of enforcement of the provisions of Chapter 9.46 RCW.
C. No tax shall be imposed under the authority of this section on bingo or amusement games when such activities or any combination thereof are conducted by any bona fide charity or nonprofit organization as defined in Chapter 9.46 RCW, which organization has no paid operating or management personnel and has gross receipts from bingo or amusement games, or a combination thereof, not exceeding five thousand dollars per year, less the amount awarded as cash or merchandise prizes. No tax shall be imposed on the first ten thousand dollars of gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by any bona fide charitable or nonprofit organization as defined in Chapter 9.46 RCW.
D. Any punchboards or pull tabs for for-profit or commercial stimulant operations, in the amount of five percent of the gross receipts directly from the operation of the punchboards or pull tabs themselves.
E. Any punchboards or pull tabs for bona fide charitable or nonprofit organizations as defined by Chapter 9.46 RCW in the amount of five percent of the gross receipts directly from the operation of the game less the amount awarded as cash or merchandise prizes.
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.
G. Other gambling activities not above specified shall be ten percent of the gross receipts.
H. Taxes imposed under this section become a lien upon personal and real property used in the gambling activity in the same manner as provided for under RCW 84.60.010. The lien shall attach the date the tax becomes due, and shall relate back and have priority against real and personal property to the same extent as ad valorum taxes.
I. The revenue from the tax imposed by this section shall be used primarily for the purpose of the enforcement of Chapter 9.46 RCW by the city of Sedro-Woolley. (Ord. 1721-11 § 7 (part), 2011: Ord. 1405-01 § 1, 2001: Ord. 1395-00 § 1, 2000: 1385-00 § 1, 2000: Ord. 1346-99 § 1, 1999: Ord. 906, 1979; Ord. 883, 1978: Ord. 869 § 2, 1977)
5.40.030 Tax—Quarterly computation—Exceptions.
Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter year, 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 the provisions of this chapter conducting or operating a taxable activity on a regular basis discontinues operation of that taxable activity for a period of more than five consecutive weeks, or quits business, sells out or otherwise disposes of its business, or terminates the business, any tax due under the provisions of 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 one consecutive calendar day, and the gross receipts therefrom do not exceed one 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 form to be supplied by the city treasurer.
C. Whenever it appears to the city treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the city treasurer, 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 city treasurer shall deem appropriate under the circumstances. (Ord. 1721-11 § 7 (part), 2011: Ord. 869 § 3, 1977)
5.40.040 Tax—Administration and collection—Forms.
A. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the city treasurer. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the city treasurer. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.
B. The city treasurer 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 treasurer shall make forms available to the public in reasonable numbers in the city treasurer’s office during regular business hours.
C. In addition to the return form, a copy of the taxpayer’s semi-annual report to the Washington State Gambling Commission, required by Chapter 230-08 WAC, for the period in which the tax accrued, shall accompany remittance of the tax amount due. (Ord. 1721-11 § 7 (part), 2011: Ord. 869 § 4, 1977)
5.40.050 Tax—Method of payment.
Taxes payable under the provisions of this chapter shall be remitted to the city 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 treasurer be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return, and copy of the semi-annual report to the Washington State Gambling Commission, shall be filed in the office of the city treasurer after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 1721-11 § 7 (part), 2011: Ord. 869 § 5, 1977)
5.40.060 Tax—Failure to pay—Penalty.
A. If full payment of any tax or fee due under the provisions of this chapter is not received by the finance director on or before the date due, there shall be added to the amount due a penalty fee as listed in the master fee schedule adopted by resolution of the city council.
B. The penalty shall be per the master fee schedule adopted by resolution of the city council.
C. 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. 2013-22 § 11, 2022; Ord. 1721-11 § 7 (part), 2011: Ord. 869 § 6, 1977)
5.40.070 Tax—Declaration of intent required.
In order that the city may identify those persons who are subject to taxation under the provisions of this chapter, each person, association or organization shall file with the city treasurer a sworn declaration of intent to conduct an activity taxable under the provisions of this chapter upon a form to be prescribed by the city treasurer together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than thirty days prior to conducting or operating the taxable activity. No fee shall be charged for such filing, which is not for the purpose of regulation of this activity, but for the purpose of administration of this chapter only.
Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 1721-11 § 7 (part), 2011: Ord. 869 § 7, 1977)
5.40.080 Tax—Recordkeeping.
A. 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 under the provisions of 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 Chapter 230-08 WAC, and the United States Internal Revenue Service respecting taxation, shall be kept and maintained for the periods required by those agencies.
B. All books, records and other items required to be kept and maintained under the provisions of this section shall be subject to, and immediately made available for, inspection and audit at any time, with or without notice, at the place where such records are kept, upon demand by the city treasurer or his designees, for the purpose of enforcing the provisions of this chapter.
C. Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this section in this jurisdiction so that the city treasurer may examine them conveniently, the taxpayer shall either:
1. Produce all of the required books, records or items within this jurisdiction for such inspection within ten days following a request of the local official that he do so; or
2. Bear the actual cost of inspection by the city treasurer or his 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 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 such examination of the records.
D. A taxpayer who fails, neglects or refuses to produce such books and records either 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 treasurer.
E. This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the city treasurer by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the city treasurer of the amount of tax so determined by jeopardy assessment, together with any penalty and/or interest, and the total of such amounts shall thereupon become immediately due and payable. (Ord. 1721-11 § 7 (part), 2011: Ord. 869 § 8, 1977)
5.40.090 Tax—Overpayment or underpayment.
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 treasurer that within three years immediately preceding receipt by the city treasurer 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 treasurer 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 the city treasurer 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 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. 1721-11 § 7 (part), 2011: Ord. 869 § 9, 1977)
5.40.100 Tax—Failure to make return.
If any taxpayer fails, neglects or refuses to make and file his return as and when required under the provisions of this chapter, the city treasurer is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed under the provisions of this chapter, and notify such taxpayer by mail 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. 1721-11 § 7 (part), 2011: Ord. 869 § 10, 1977)
5.40.110 Tax—Additional to other fees.
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 Sedro-Woolley, except as otherwise expressly provided in this chapter. (Ord. 1721-11 § 7 (part), 2011: Ord. 869 § 11, 1977)
5.40.120 City treasurer—Rulemaking authority.
The city treasurer shall have the power, and it shall be his duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with superior law, for the purpose of carrying out the provisions of this chapter, and it shall be unlawful to violate or fail to comply with any such rule or regulation. (Ord. 1721-11 § 7 (part), 2011: Ord. 869 § 12, 1977)
5.40.130 Unpaid taxes deemed debt to city.
Any tax due and unpaid under the provisions of this chapter and all penalties or fees shall constitute a debt to the city, a municipal corporation, 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. 1721-11 § 7 (part), 2011: Ord. 869 § 13, 1977)
5.40.140 Right to recovery.
The right of recovery by the city from the taxpayer for any tax provided under the provisions of this chapter shall be outlawed after the expiration of three 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 three calendar years from the date such payment was made. (Ord. 1721-11 § 7 (part), 2011: Ord. 869 § 14, 1977)
5.40.150 Violation—Penalty.
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 treasurer pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed one thousand dollars, or by imprisonment for a term not exceeding ninety days, or by both such fine and imprisonment.
Any taxpayer who engages in, or carries on, any gambling activity subject to a tax under the provisions of 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. 1721-11 § 7 (part), 2011: Ord. 869 § 15, 1977)