Chapter 3.10
GAMBLING TAX*
Sections:
3.10.010 State definitions adopted.
3.10.020 Bingo, raffle, punchcard and pull tab tax levied.
3.10.030 Charitable or nonprofit organizations exempted.
3.10.040 Administration and collection – Return forms and quarterly reports to state.
3.10.050 Rules and regulations.
3.10.060 Quarterly computation and payment.
3.10.080 Penalty and interest on late remittance – Nonpayment violation.
3.10.090 Notice of taxable activity required.
3.10.110 Additional nature of tax.
3.10.120 Debt status of unpaid tax.
* Prior history: Ord. 1589.
3.10.010 State definitions adopted.
Definitions contained in Chapter 9.46 RCW, as they exist as of the adoption of the ordinance codified in this chapter or are augmented by the rules and regulations promulgated by the Washington State Gambling Commission, WAC Title 230, are adopted by reference. (Ord. 1677 § 1, 1983; Ord. 1656 § 1, 1982; Ord. 1597 § 1, 1981)
3.10.020 Bingo, raffle, punchcard and pull tab tax levied.
In accordance with the provisions of Chapter 9.46 RCW, 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/or raffles: There shall be a tax imposed on bingo games and/or raffles in the amount of the gross receipts therefrom less the amount of money paid as cash, and paid for merchandise actually awarded as prizes during the taxable period, multiplied by the rate of two percent.
B. Punchboards and pull tabs, chances on which shall only be sold to adults: There shall be a tax imposed on the gross receipts of the sale of punchboards or pull tabs as follows:
1. For all sales occurring in 1998, 0.5 percent;
2. 1999 and thereafter, the tax shall be eliminated.
C. On any cardroom operated as a commercial stimulant, a tax of $200.00 per year shall be assessed.
D. Personal Guarantee. Prior to the issuance of a business license to any business entity of any form whatsoever, the business entity shall guarantee the payment of all local taxes, both in the name of the business entity and personally, in the name of the principal parties who either own and/or run the business. A license shall not be issued until the guarantees are received. If the business is transferred, the business owner shall be responsible for informing the transferee of the requirement of this section. If the transferee fails to sign and/or fails to execute a personal guarantee, then the transferor shall continue to be personally liable for the tax. (Ord. 2352 § 1, 1998; Ord. 2269 § 1, 1996; Ord. 2243 § 1, 1996; Ord. 1677 § 2, 1983; Ord. 1597 § 2, 1981)
3.10.030 Charitable or nonprofit organizations exempted.
No tax shall be imposed under 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 as prizes. (Ord. 1597 § 3, 1981)
3.10.040 Administration and collection – Return forms and quarterly reports to state.
The administration and collection of the tax imposed by this chapter shall be by the treasurer of the city pursuant to the terms of this chapter and such rules and regulations as may be adopted by the Washington State Gambling Commission.
A. 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. In addition to the return form, a copy of the taxpayer’s quarterly 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. 1597 § 4, 1981)
3.10.050 Rules and regulations.
The city may adopt from time to time such rules and regulations as may be reasonably necessary to enable the collection of the tax imposed in this chapter. (Ord. 1597 § 4, 1981)
3.10.060 Quarterly computation and payment.
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. Remittance therefor, together with return forms, shall be made to the treasurer of 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:
Whenever any person, association or organization taxable under this chapter, conducting or operating a taxable activity on a regular basis, discontinues operation of that 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. (Ord. 1597 § 5, 1981)
3.10.070 Forms of payment.
Taxes payable under this chapter shall be remitted to the treasurer of the city, on or before the time required, by bank draft, certified check, cashier’s check, personal check, money order or 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 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. (Ord. 1597 § 6, 1981)
3.10.080 Penalty and interest on late remittance – Nonpayment violation.
A. If full payment of any tax of fee due under this chapter is not received by the city finance department on or before the date due, there shall be added to the amount due a penalty fee as follows:
1. One to 10 days late: five percent of tax due;
2. Eleven to 20 days late: 10 percent of tax due;
3. Twenty-one to 30 days late: 15 percent of tax due;
4. Thirty-one to 60 days late: 20 percent of tax due; but in no event shall the penalty amount be less than $5.00. In addition to this penalty, the city finance department will charge the taxpayer interest of eight percent of all taxes and fees due for each 30-day period, or portion thereof, that the amounts are past due.
B. Failure to make payment in full of all tax amounts and penalties, within 10 days following the day the tax amount initially became due is a violation of this section. (Ord. 2257 § 1, 1996; Ord. 1597 § 7, 1981)
3.10.090 Notice of taxable activity required.
In order that the city may identify those persons whom are subject to taxation under this chapter, each person, association or organization shall file with the city treasurer a sworn declaration of intent to conduct an activity taxable under 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 15 days prior to conducting or operating the taxable activity. No fee shall be charged for such filing, but for the purposes of administration of this taxing chapter only. (Ord. 1597 § 8, 1981)
3.10.100 Books and records.
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 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 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 taxing 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 or authorized officer 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 10 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 officer 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 the examination of the records. (Ord. 1597 § 9, 1981)
3.10.110 Additional nature of tax.
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 the city, except as otherwise expressly provided in this chapter. (Ord. 1597 § 10, 1981)
3.10.120 Debt status of unpaid tax.
Any tax due and unpaid constitutes a debt to the city of Blaine, 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 any and all other existing remedies. The city of Blaine is further authorized to file a lien against the property of the debtor. In addition to all other penalties provided for in this chapter and in this code, the city shall be entitled to reasonable attorney’s fees for all efforts associated with collecting these taxes. (Ord. 2257 § 2, 1996; Ord. 1597 § 11, 1981)
3.10.125 Violations, penalty.
It is unlawful for any person to fail or refuse to make returns or to file notices as are required by this chapter and/or this code. It is further unlawful for any person to fail or refuse to file or pay the tax when due. Any person convicted of a violation of any of the terms of this chapter and/or of this code may be imprisoned for a period of 90 days or pay a fine, the sum not to exceed $1,500, or both. BMC 1.28.020 shall also apply resulting in revocation of the violator’s business license upon failure to timely make returns or file notices required by this chapter. These penalties are in addition to any and all other penalties provided for in this code and/or in this chapter. (Ord. 2257 § 3, 1996)
3.10.130 Use of revenues.
The revenue collected pursuant to this chapter shall be used primarily for the purpose of enforcement of Chapter 9.46 RCW by the Blaine police department as provided in RCW 9.46.113. (Ord. 1597 § 12, 1981)