Chapter 3.10
GAMBLING TAX

Sections:

3.10.010    Definitions.

3.10.020    Imposition – Rate.

3.10.030    Administration – Collection.

3.10.040    Payments – Late penalties and liens.

3.10.050    Disposition of proceeds.

3.10.060    Clerk-treasurer’s authority.

3.10.070    Access to records.

3.10.080    Washington laws – Applicability.

3.10.090    Violation – Penalty.

3.10.010 Definitions.

For the purposes of this chapter the terms used herein shall have the same meanings as defined in Chapter 9.46 RCW, as the same now exists or may hereafter be amended. Said definitions are hereby incorporated by reference. (Ord. 1018, 1997; Ord. 615 § 1, 1983).

3.10.020 Imposition – Rate.

(1) There is hereby levied pursuant to RCW 9.46.110 upon all persons, corporations, associations and organizations authorized to conduct or operate any gambling activity or amusement game within the city, as provided herein, taxes as follows:

(a) Bingo and/or Raffles. These activities shall be taxed at a rate of five percent of the gross receipts received therefrom, less the amount paid for as prizes.

(b) Amusement Games. These activities shall be taxed at a rate of two percent of the gross revenue therefrom less the amount paid for as prizes.

(c) Punchboards and/or Pulltabs. These activities shall be taxed:

(i) To bona fide charitable or nonprofit organizations at a rate of five percent of gross receipts less prizes;

(ii) To commercial stimulant operators at a rate of five percent of gross receipts.

(d) Social Card Games and/or Any Other Gambling Activity. These activities shall be taxed at a rate of five percent of the gross receipts therefrom to the extent provided in subsections (2) and (3) of this section.

(2) Provided, that no tax shall be imposed on bingo, or amusement games when such activities are conducted by any bona fide charitable or nonprofit organization, 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 any bona fide charitable or nonprofit organization.

(3) Provided further, that the tax provided for in subsection (1)(d) of this section shall apply solely to those social card games and/or any other gambling activity, including fund-raising events conducted, held or operated as a commercial stimulant as defined in Chapter 9.46 RCW. Specifically, such tax shall apply only to such activities conducted in a “public card room” as defined in WAC 230-02-410. (Ord. 1076, 1999; Ord. 1018, 1997; Ord. 615 § 2, 1983).

3.10.030 Administration – Collection.

The administration and collection of the tax imposed by this chapter shall be by the clerk-treasurer pursuant to rules and regulations as may be adopted by the State Gambling Commission. (Ord. 1018, 1997; Ord. 615 § 3, 1983).

3.10.040 Payments – Late penalties and liens.

(1) The tax imposed by this chapter shall be due and payable in quarterly installments, and remittance therefor shall accompany each return and be made on or before the thirtieth day of the month next succeeding the quarterly period 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) First to 17 days delinquency, 10 percent of payment due;

(b) More than 17 days delinquency, 15 percent of payment due;

(c) A copy of all forms submitted to the state shall be submitted with the payment to the city.

(3) Taxes imposed under this chapter 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 on the date the tax becomes due and shall relate back and have priority against real and personal property to the same extent as ad valorem taxes. (Ord. 1018, 1997; Ord. 615 § 4, 1983).

3.10.050 Disposition of proceeds.

(1) All taxes received under this chapter shall be deposited in the current expense fund. Moneys deposited in such fund as a result of the tax imposed by this chapter shall be used by the police department for the policing and enforcement of state statutes and city ordinances relating to the control of gambling and such criminal activities as may be incidental to gambling, including vice and drug controls.

(2) For purposes of this chapter, the reasonable and necessary expenses of the clerk-treasurer in administering and providing audit services pursuant hereto shall also be legitimate charges against the gambling tax since such expenses are recognized as being vital to the enforcement of this chapter. (Ord. 1018, 1997; Ord. 615 § 8, 1983).

3.10.060 Clerk-treasurer’s authority.

The clerk-treasurer shall:

(1) Adopt, publish and enforce such rules and regulations consistent with this chapter as are necessary to enable the collection of the tax imposed by this chapter in the unincorporated areas of Snohomish County;

(2) Prescribe and issue the appropriate forms for determination and declaration of the amount of tax to be paid. (Ord. 1018, 1997; Ord. 615 § 6, 1983).

3.10.070 Access to records.

It shall be the responsibility of all officers, directors and managers of any organization conducting gambling activities to provide access to such financial records as the clerk-treasurer, chief of police, city attorney, their authorized representatives, or law enforcement representatives of local municipalities may require in order to determine compliance with this chapter. (Ord. 1018, 1997; Ord. 615 § 7, 1983).

3.10.080 Washington laws – Applicability.

This chapter, and all activities undertaken hereunder shall be subject to all applicable laws and regulations of the state of Washington. (Ord. 1018, 1997; Ord. 615 § 9, 1983).

3.10.090 Violation – Penalty.

Violation of this chapter shall constitute a Class B infraction as defined in SMC 13.01.045(1) and subject the violator to enforcement. Any such fines shall be in addition to the tax required. Officers, directors and managers of any organization conducting gambling activities shall be jointly and severally liable for the payment of the tax and for the payment of any fine imposed under the Stanwood Municipal Code. (Ord. 1112 § 2, 2001; Ord. 1018, 1997; Ord. 615 § 5, 1983).