Chapter 5.06
GAMBLING

Sections:

5.06.010    Definitions.

5.06.020    Gambling tax imposed.

5.06.030    Exemptions.

5.06.040    Administration of tax.

5.06.050    Tax due date – Delinquency.

5.06.060    Financial records.

5.06.070    Charitable, nonprofit organization – Declaration of intent to conduct gambling activity.

5.06.080    Card games prohibited.

5.06.090    Unlawful acts.

5.06.100    Penalty.

5.06.010 Definitions.

For the purposes of this chapter, the terms used herein shall have the same meanings as defined in Chapter 9.46 RCW as now exists or as may hereafter be amended. (Ord. 12 § 7, 1993)

5.06.020 Gambling tax imposed.

Pursuant to RCW 9.46.110 as the same now exists or may hereafter be amended, there is levied upon all persons, associations or organizations a tax on all gambling activity occurring within the City as permitted by State law at the following rates:

(1) Any bingo or raffle activity at a rate of 10 percent of the gross revenues received therefrom less the amount paid for as prizes;

(2) Any 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 equal two percent of the sum of the gross revenues received therefrom less the amount paid for as prizes;

(3)  Any punchboard or pull-tab activity at a rate of five percent of the gross receipts. (Ord. 12 § 1, 1993)

5.06.030 Exemptions.

No tax shall be imposed pursuant to this chapter on bingo or amusement games when such activities or any combination thereof are conducted by a bona fide charitable or nonprofit organization as defined in RCW 9.46.0209 as the same now exists or may hereafter be amended, which organization has no paid operating or management personnel and has gross income from bingo or amusement games or any combination thereof not exceeding $5,000 per year less the amount paid for as prizes. No tax shall be imposed on the first $10,000 of net proceeds from raffles conducted by bona fide charitable organizations. (Ord. 12 § 2, 1993)

5.06.040 Administration of tax.

The administration and collection of the tax imposed by WMC 5.06.020 shall be by the Finance Director and pursuant to the rules and regulations of the Washington State Gambling Commission.

The Finance Director is instructed and authorized to adopt appropriate reporting requirements, to ensure the effective administration of license holders exempt from the payment of said tax and to make such further rules and regulations for the purpose of carrying out the provisions of this title. (Ord. 530 § 11, 2012; Ord. 12 § 3, 1993)

5.06.050 Tax due date – Delinquency.

(1) The tax imposed by WMC 5.06.020 shall be due and payable in quarterly installments, and remittance therefor shall accompany such return and be made on or before 45 days after the end of the quarter in which the tax accrued.

(2) For each payment due, if such payment is not made by the due date thereof, there shall be added a penalty as follows:

(a) If paid on or before 60 days from the quarterly period in which the tax accrued, 10 percent with a minimum penalty of $5.00;

(b) If paid on or before 75 days from the quarterly period in which the tax accrued, 15 percent with a minimum penalty of $10.00;

(c) Failure to make payment by the seventy-fifth day from the end of the quarterly period in which the tax accrued shall result in a penalty of 20 percent with a minimum penalty of $15.00. (Ord. 574 § 1, 2013; Ord. 66 § 1, 1993; Ord. 12 § 5, 1993)

5.06.060 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 Finance Director may require in order to determine full compliance with this chapter. (Ord. 530 § 11, 2012; Ord. 12 § 6, 1993)

5.06.070 Charitable, nonprofit organization – Declaration of intent to conduct gambling activity.

For the purpose of identifying who shall be subject to the tax imposed by WMC 5.06.020, 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, as the same now exists or may be hereafter amended, shall, prior to commencement of any such activity, file with the Finance Director 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 the same now exists or may be hereafter amended, as amended. 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 quarterly period in which the tax accrued, file with the Finance Director a sworn statement, on a form to be provided and prescribed by the Finance Director for the purpose of ascertaining the tax due for the preceding quarterly period. (Ord. 530 § 11, 2012; Ord. 12 § 4, 1993)

5.06.080 Card games prohibited.

Social card games, as defined in RCW 9.46.0281, are hereby prohibited. (Ord. 12 § 8, 1993)

5.06.090 Unlawful acts.

It is unlawful for any person liable for the tax imposed by this chapter to fail to pay the tax when due or for any person to make any false or fraudulent return or any false statement in connection with said return. (Ord. 12 § 9, 1993)

5.06.100 Penalty.

Any person violating any provision of this chapter shall be guilty of a misdemeanor and upon conviction thereof punished pursuant to State law or City ordinance. (Ord. 12 § 10, 1993)