Chapter 3.04
Gambling Tax
Sections:
3.04.040 Declaration of intent to conduct gambling activity.
3.04.060 Failure to pay--Penalty.
3.04.010 Tax imposed.
Pursuant to Chapter 9.46 RCW, as the same now exists or may hereafter be amended, there is levied upon all persons, associations or organizations a tax on all gambling activities occurring within the City as permitted by State law at the following rates:
(a) Bingo or raffles at a rate of five percent of the gross revenues received therefrom, less the amount awarded as cash or merchandise prizes;
(b) Amusement games at a rate of two percent of the sum of the gross revenues received therefrom, less the amount paid for as prizes;
(c) Punchboards or pull-tabs at a rate of five percent of gross receipts received in the conduct of such activity;
(d) Social card games at the rate of 20 percent of the gross revenue from such games. (Ord. 08-867 § 13).
3.04.020 Exemptions.
No tax shall be imposed pursuant to this chapter on bingo or amusement games when such gambling activities, or any combination thereof, are conducted by a bona fide charitable or nonprofit organization as defined in RCW 9.46.020, as the same now exists or may hereafter be amended, which organization has no paid operating or management personnel for the gambling activities 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. 08-867 § 13).
3.04.030 Administration.
Collection and administration of the tax herein imposed shall be by the Finance Department of the City and pursuant to rules and regulations as may be adopted by the Washington State Gambling Commission. The Finance Director is instructed and authorized to adopt, publish, and enforce appropriate rules, regulations, and reporting requirements, to enable the collection of the tax imposed by this chapter, and to prescribe and issue the appropriate forms for determination and declaration of the amount of tax to be paid. (Ord. 08-867 § 13).
3.04.040 Declaration of intent to conduct gambling activity.
For the purpose of identifying who shall be subject to the tax imposed by this chapter, any person, association or organization intending to conduct or operate any gambling activity authorized by Chapter 9.46 RCW shall, prior to the commencement of any such activity, file with the City Clerk 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. (Ord. 08-867 § 13).
3.04.050 Tax payments.
The tax imposed by this chapter shall be due and payable in quarterly installments, and remittance thereof 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.
For each payment due, if such payment is not made by the due date therefor, there shall be added a penalty and interest as follows:
(a) If paid one to 10 days late, there shall be a penalty of 10 percent added to the amount of tax due with a minimum penalty of $2.00.
(b) If paid 11 to 20 days late, there shall be a penalty of 15 percent added to the amount of tax due with a minimum penalty of $3.00.
(c) If paid 21 to 30 days late, there shall be a penalty of 20 percent added to the amount of tax due with a minimum penalty of $4.00.
(d) If paid over 30 days late, there shall be a penalty of 25 percent added to the amount of tax due with a minimum penalty of $5.00.
(e) In addition to the above penalty, the City will charge the taxpayer interest on all taxes due at the rate of one percent per month or portion thereof that said amounts are past due.
(f) Delinquent payments will be subject to the City’s collection policies. (Ord. 08-867 § 13).
3.04.060 Failure to pay--Penalty.
Any person or organization who shall fail or refuse to pay the tax herein when required, or who shall willfully disobey this chapter or any rule or regulation promulgated by the Finance Department, or make any false or fraudulent return or any false statement in connection with the return, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished as per State law or City ordinance. Any fine shall be in addition to the tax and delinquency penalties and interest required. Officers, directors and managers of any organization conducting gambling activities shall be jointly and severally liable for the payment of such tax and for the payment of any fine imposed hereunder. (Ord. 08-867 § 13).
3.04.070 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, his authorized representative, or law enforcement officers may require to determine full compliance with this chapter. (Ord. 08-867 § 13).
3.04.080 Severability.
Should any section, paragraph, sentence, clause or phrase of this chapter or its application to any person or circumstance be declared unconstitutional or otherwise invalid for any reason, such decision shall not affect the validity of the remaining portions of this chapter or its application to other persons or circumstances. (Ord. 08-867 § 13).