Chapter 3.32
AMUSEMENT GAMES TAX
Sections:
3.32.020 Persons subject to tax – Tax rates – Exceptions.
3.32.030 Computation – Quarterly payment – Exceptions.
3.32.040 Administration and collection.
3.32.060 Failure to make timely payments.
3.32.070 Notice of intention to engage in activity required.
3.32.090 Records – Inspection and audit requirements.
3.32.100 Records – Jeopardy fee upon failure to produce for inspection.
3.32.110 Overpayment or underpayment.
3.32.120 Failure to make return.
3.32.130 Tax additional to others.
3.32.140 Taxes, penalties, and fees constitute debt to municipality.
3.32.150 Limitation on right of recovery.
3.32.160 Use of revenue from tax.
3.32.010 Definitions.
For the purpose of this section the words and terms used throughout this chapter shall have the same meaning as such has under Chapter 218, Laws of 1973, First Extraordinary 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 herein clearly indicates that they be given some other meaning. (Ord. 290 § 1, 1978).
3.32.020 Persons subject to tax – Tax rates – Exceptions.
There is levied upon all persons, associations and organizations conducting or operating within this jurisdiction any of the activities listed below and following a tax in the following amounts to be paid to the city; provided, that no tax shall be imposed under the authority of this chapter on bingo, raffles or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in RCW 9.46.020(3), which organization has no paid operating or management personnel and has gross income from bingo, raffles or amusement games or any combination thereof, not exceeding $5,000 per year less the amount paid for as prizes.
(1) Bingo, 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 three percent;
(2) Raffles, 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, and multiplied by the rate of three percent;
(3) Amusement games, 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 two percent;
(4) Any punchboards or pull tabs, in the amount of three percent of the gross receipts directly from the operation of the punchboards or pull tabs themselves on gross receipts over $100,000;
(5) Card playing, in the amount of 15 percent of the gross receipts received as fees charged persons for the privilege of playing in card games;
(6) Fund raising events, in the amount of 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 three percent. (Ord. 09-007 § 1; Ord. 03-710 § 1; Ord. 290 § 2, 1978).
3.32.030 Computation – Quarterly payment – Exceptions.
Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter year and 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 which the tax accrued, that is, January 31st, April 30th, July 31st, October 31st of each year; provided, that the following exceptions to this payment schedule shall be allowed or required:
(1) 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 four consecutive weeks, 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 10 days thereafter make a return and pay the tax due.
(2) Whenever it appears to the city clerk-treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the city clerk-treasurer, after not less than 15 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 clerk-treasurer shall deem appropriate under the circumstances. (Ord. 290 § 3, 1978).
3.32.040 Administration and collection.
(1) 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 clerk-treasurer. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate, and complete.
(2) The city clerk-treasurer is authorized but not required to mail to the 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 of all taxes due. The city clerk-treasurer shall make forms available to the public in reasonable numbers in her office during regular business hours.
(3) In addition to the return form, a copy of the taxpayer’s quarterly report to the Washington State Gambling Commission required by the regulations of said commission for the period in which the tax accrued shall accompany remittance of the tax amount due. (Ord. 290 § 4, 1978).
3.32.050 Methods 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 as 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 copy of a quarterly report to the Washington State Gambling Commission shall be filed in the office of the city clerk-treasurer after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 290 § 5, 1978).
3.32.060 Failure to make timely payments.
(1) 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:
(a) One to 10 days late, six percent of tax due;
(b) Eleven to 20 days late, eight percent of tax due;
(c) Twenty-one to 31 days late, 10 percent of tax due;
(d) Thirty-two to 60 days late, 12 percent of tax due; but in no event shall the penalty amount be less than $5.00. In addition to this penalty, the city clerk-treasurer may charge the taxpayer interest of one percent of all taxes and fees due for each 30-day period, or portion thereof, that said amounts are past due.
(2) Failure to make payments in full of all tax amounts and penalties, within 60 days following the day the tax amount initially becomes due, shall be both a civil and a criminal violation of this section. (Ord. 290 § 6, 1978).
3.32.070 Notice of intention to engage in activity required.
In order that the city can 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 10 days prior to conducting or operating the taxable activity or 20 days after the effective date of the ordinance codified in this chapter, if the activity is being conducted prior to the adoption thereof. No fee shall be charged for such filing which is not for the purpose of administration of this taxing chapter only. Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 290 § 7, 1978).
3.32.080 Records – Required.
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 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, and the United States Internal Revenue Service respecting taxation, shall be kept and maintained for the periods required by those agencies. (Ord. 290 § 8, 1978).
3.32.090 Records – Inspection and audit requirements.
(1) All books, records and other items required to be kept and maintained under KMC 3.32.080 shall be subject to, and immediately made available for, inspection and audit during normal business hours 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 taxing chapter.
(2) 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 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 seven days following a request of the local official that he do so; or
(b) Bear the actual cost of inspection by the city clerk-treasurer or her designees 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 said examination of the records. (Ord. 290 § 8, 1978).
3.32.100 Records – Jeopardy fee upon failure to produce for inspection.
(1) A taxpayer who fails, neglects or refuges to produce such books or 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 clerk-treasurer.
(2) This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing 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/or interest, and the total of such amounts shall thereupon become immediately due and payable. (Ord. 290 § 8, 1978).
3.32.110 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 clerk-treasurer that within three years immediately preceding receipt by the city clerk-treasurer of the application by the taxpayer for a refund or any audit or in the absence of such an application within the three years immediately preceding the commencement by the city clerk-treasurer of such action:
(1) When 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 any excess amounts paid more than three years before the date of such application or examination.
(2) When 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 10 days of mailing. (Ord. 290 § 9, 1978).
3.32.120 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/or interest assessed under the provisions of this chapter and by mail thereupon become the tax and penalty and/or interest and shall become immediately due and payable. (Ord. 290 § 10, 1978).
3.32.130 Tax additional to others.
The tax levied in this chapter shall be in addition 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. 290 § 11, 1978).
3.32.140 Taxes, penalties, and fees constitute debt to municipality.
Any tax due and unpaid under 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. 290 § 12, 1978).
3.32.150 Limitation on right of recovery.
The right of recovery by the city from the taxpayers for any tax provided under this chapter shall be outlawed after the expiration of three calendar years from the date the tax becomes 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. 290 § 13, 1978).
3.32.160 Use of revenue from tax.
Any revenue collected from such tax shall be used primarily by the city for the purpose of enforcement of the provisions of this chapter and RCW 9.46.110, by the city police department, as directed by RCW 9.46.113. (Ord. 290 § 15, 1978).
3.32.170 Violation – Penalty.
(1) 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 pursuant thereto, upon conviction thereof, shall be guilty of a misdemeanor and shall be punished by a fine in a sum not to exceed $500.00 or by imprisonment of not in excess of six months in the county jail, or by both fine and imprisonment.
(2) Any taxpayer who engages in, or carries on, any gambling activities subject to a tax hereunder without having complied with the provisions of this chapter shall be guilty of a separate offense for each day during which the gambling activity is carried on. (Ord. 290 § 14, 1978).