Chapter 3.36
GAMBLING TAX
Sections:
3.36.020 Applicability – Rate – Prohibited activities.
3.36.030 Administration and collection.
3.36.040 Filing of declaration of intention.
3.36.050 Computation – Payment.
3.36.070 Failure to make timely payment.
3.36.090 Overpayment or underpayment.
3.36.100 Failure to make return.
3.36.110 Tax additional to others.
3.36.120 Promulgation of rules and regulations.
3.36.130 Tax deemed debt to city.
3.36.140 Limitation on right to recovery.
3.36.010 Definitions.
For the purposes of this chapter, the words and terms used shall have the same meaning as each has under Chapter 9.46 RCW, and as it may be from time to time amended and as set forth under the rules of the Washington State Gambling Commission, WAC Title 230, as it may be amended from time to time unless otherwise specifically provided. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 3, 1976. Formerly 3.28.010)
3.36.020 Applicability – Rate – Prohibited activities.
A. In accordance with Chapter 9.46 RCW, as now or hereafter amended, there is levied upon all persons, associations and organizations who have been duly licensed by the Washington State Gambling Commission to conduct or operate within this jurisdiction any of the activities listed below a tax in the following amounts to be paid to the city:
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 five percent; provided, that there shall be allowed as an exemption from the levy of said tax a sum equal to one hundred dollars per week for each week that bingo is conducted; provided further, that no tax shall be imposed on bingo when such activity is conducted by any bona fide charitable or nonprofit organization that has no paid operating or management personnel and that has gross income from bingo, raffles or amusement games, or any combination thereof, not exceeding five thousand dollars per year, less the amount paid for as prizes.
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, multiplied by the rate of five percent; provided, however, there shall be allowed as an exemption from the levy of said tax the sum of one hundred dollars per raffle, not to exceed a total exemption of one hundred dollars per week; provided further, that no tax shall be imposed on raffles when such activity is conducted by any bona fide charitable or nonprofit organization that has no paid operating or management personnel and that has gross income from bingo, raffles or amusement games, or any combination thereof, not exceeding five thousand dollars per year, less the amount paid for as prizes.
3. Amusement games are not subject to the levy of a tax.
B. Cardrooms, card playing, punchboards and pulltabs as otherwise licensed by the state and permitted pursuant to Chapter 9.46 RCW are prohibited and it is unlawful for any person or persons to operate, conduct, maintain or to participate in any such activity within the city limits. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8.A §§ 1, 2, 1977; Ord. 28.8 §§ 1, 2, 1976. Formerly 3.28.020)
3.36.030 Administration and collection.
A. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the city clerk. Remittance of the amount due shall be accompanied by a complete return form prescribed and provided by the clerk. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.
B. The clerk is authorized, but not required, to mail to taxpayers forms for returns. Failure of the taxpayer to receive such a form shall not excuse the taxpayer from making the return and timely paying all taxes due. The clerk shall have forms available for the public in reasonable numbers at the City Hall during regular business hours.
C. 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. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 5, 1976. Formerly 3.28.030)
3.36.040 Filing of declaration of intention.
In order that the city may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the city clerk a sworn declaration of intent to conduct an activity taxable under this chapter, upon a form to be prescribed by the clerk, together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not less than ten days prior to conducting or operating the taxable activity. A fee of two dollars and fifty cents shall be charged for such filing. Failure to timely file such declaration of intent shall not excuse any person, association or organization from any tax liability. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 8, 1976. Formerly 3.28.040)
3.36.050 Computation – Payment.
A. 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 the return forms, shall be made to the city on or before the last day of the next month succeeding the quarterly period in which the tax accrued. Such payments shall be due on January 31st, April 30th, July 31st, and October 31st of each respective year.
B. Provided, however, whenever any persons, associations and organizations taxed under this chapter quit business, sell out, or terminate the business, any tax due under this chapter shall become due and payable immediately and such taxpayer shall, within ten days thereafter, make a return and pay the tax due.
C. Whenever it appears to the city clerk that the collection of taxes from any person, association or organization may be in jeopardy, the clerk, after not less than ten days’ notice to the taxpayer, is authorized to require that the taxpayer remit taxes due and returns at such shorter intervals than otherwise provided as the clerk shall deem appropriate under the circumstances. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 4, 1976. Formerly 3.28.050)
3.36.060 Method of payment.
Taxes payable under this chapter shall be remitted to the city clerk on or before the time required by bank draft, certified check, cashiers check, personal check, money order, or in cash. If payment is made by draft or check, the tax shall be deemed paid until the draft or check is not honored in the usual course of business, nor shall the acceptance of any sum by the clerk be an acquittance or discharge of the tax due unless the amount paid is the full amount due. The return and the copy of quarterly report to the Washington State Gambling Commission shall be filed in the office of the city clerk after notation by the clerk upon the return of the amount actually received from the taxpayer. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 6, 1976. Formerly 3.28.060)
3.36.070 Failure to make timely payment.
A. If full payment of any tax or fee due under this chapter is not received by the city clerk on or before the due date, there shall be added to the amount owing a penalty fee as follows:
1. One to thirty days late, one percent of the tax due;
2. Thirty-one to sixty days late, two percent of the tax due, but in no event shall the penalty amount be less than twenty-five dollars.
B. In addition to this penalty, the clerk may charge the taxpayer interest of one percent of all taxes and fees due for each thirty-day period or portion thereof that said amounts are past due.
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 criminal violation of this chapter. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 7, 1976. Formerly 3.28.070)
3.36.080 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 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 230-00 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 the demand of the city clerk or her designee for the purpose of enforcing the provisions of this chapter.
C. Where the taxpayer does not keep all of the books, records or items required to be kept or maintained under this section within the jurisdiction of the city so that the city clerk may examine them conveniently, the taxpayer shall either:
1. Produce and make available for inspection in this jurisdiction all of the required books, records or other items within ten days following a request by the city clerk that he do so;
2. Bear the actual cost of inspection by the city clerk or her designee at the location of which said books, records or items are located; provided, that a taxpayer choosing to bear those costs shall pay in advance to the city clerk the estimated costs 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.
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 clerk which penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of the fee or tax owing by the taxpayer unless he can prove otherwise. The taxpayer shall be notified by the city clerk by posting in the mails of the United States, addressed to the taxpayer to the last address on file with the city clerk, a statement 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 payable. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 9, 1976. Formerly 3.28.080)
3.36.090 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 that within three years immediately preceding receipt by the city clerk of the application by the taxpayer for a refund or an audit, or in the absence of such an application, within three years immediately preceding the commencement by the city clerk 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 for any excess paid 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 clerk 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. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 10, 1976. Formerly 3.28.090)
3.36.100 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 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 to notify such taxpayer 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. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 11, 1976. Formerly 3.28.100)
3.36.110 Tax additional to others.
The taxes levied in this chapter shall be additional to any license fee or tax imposed or levied under any law or other ordinance of the city except as otherwise herein expressly provided. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 12, 1976. Formerly 3.28.110)
3.36.120 Promulgation of rules and regulations.
The city clerk shall have the power, and it shall be her duty from time to time to adopt, publish and enforce rules and regulations not inconsistent with this chapter or other applicable laws for the purpose of carrying out the provisions hereof, and it shall be unlawful to violate or fail to comply with any such rule or regulation. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 13, 1976. Formerly 3.28.120)
3.36.130 Tax deemed debt to city.
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city and may be collected by court proceedings the same as any other debt or like amount which shall be in addition to all other existing remedies. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 14, 1976. Formerly 3.28.130)
3.36.140 Limitation on right to recovery.
The right of recovery by the city from the taxpayer for any tax provided under this chapter shall be outlawed after the expiration of three calendar years from the date said 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. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 15, 1976. Formerly 3.28.140)
3.36.150 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 clerk pursuant thereto, upon conviction thereof, shall be subject to being punished by a fine in a sum not to exceed two hundred fifty dollars. 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 violation of this chapter for each day during which the gambling activity is conducted. (Ord. 363 § 1(Exh. A)(part), 2009: Ord. 28.8 § 16, 1976. Formerly 3.28.150)