Chapter 3.24
GAMBLING AND OTHER
AMUSEMENTS TAX

Sections:

3.24.010    Statutory provisions adopted by reference.

3.24.020    Definitions.

3.24.030    Tax levied on designated activities – Amount.

3.24.040    Exemptions – Charitable and nonprofit organizations.

3.24.050    Payment procedure.

3.24.060    Administration and collection.

3.24.070    Method and terms of payment.

3.24.080    Late payment – Penalties and interest charges.

3.24.090    Filing – Prerequisite to commencement of taxable activity.

3.24.100    Filing – Required following license expiration, suspension or revocation.

3.24.110    Records of activity required.

3.24.120    Overpayments and underpayments – Refunds and penalties.

3.24.130    Failure to file return – Treasurer authorized to set tax due.

3.24.140    Rules and regulations – Treasurer to adopt, publish and enforce.

3.24.150    Tax separate from license fees.

3.24.160    Tax due constitutes debt to city.

3.24.170    Four-year limit on recovery.

3.24.180    Violation – Penalty.

3.24.010 Statutory provisions adopted by reference.

Chapter 218, Laws of Washington 1973 (43rd legislative, 1st Extra Session) is hereby adopted as if set forth fully herein. (Ord. 397 § 1, 1982).

3.24.020 Definitions.

For the purposes of this chapter, the words and terms used herein shall have the same meaning each has under Chapter 9.46 RCW, as amended, and under the rules of the Washington State Gambling Commission, Chapter 230 WAC, as the same exists or may hereafter be amended, unless otherwise specifically provided herein. (Ord. 765 § 1, 1997; Ord. 397 § 2, 1982).

3.24.030 Tax levied on designated activities – Amount.

There is hereby levied upon all persons, associations and organizations conducting or operating within the city any of the activities listed below a tax to be paid to the city of Gig Harbor, Washington, in the amount hereinafter specified:

A. Bingo and raffles: Operators shall pay a tax in the amount equal to five percent of the gross receipts from a bingo game or raffle, less the amount awarded as cash or merchandise prizes.

B. Punchboards and pulltabs:

1. Commercial stimulant operators shall pay a tax in an amount equal to five percent of the gross receipts from the operation of punchboards and pulltabs; and

2. Bona fide charitable or nonprofit organizations shall pay a tax in an amount equal to 10 percent of the gross receipts from the operation of the games, less the amount awarded as prizes or merchandise.

C. Card playing: Operators shall pay a tax equal to 20 percent of the gross receipts from such games.

D. Amusement games which are authorized for operation pursuant to the provisions of the Washington Administrative Code shall be subject to the levy of a tax in the amount of two percent of the gross receipts from the amusement game, less the amount awarded as prizes. Such tax is for the purpose of providing for the city’s actual costs of enforcement of the laws of the state of Washington and the ordinances of the city of Gig Harbor. (Ord. 826 § 1, 1999; Ord. 765 § 2, 1997; Ord. 397 § 3, 1982).

3.24.040 Exemptions – Charitable and nonprofit organizations.

A. Bingo and amusement games conducted by a bona fide charitable or nonprofit organization shall be exempt from the tax imposed by GHMC 3.24.030(A) and (D), when such organization has no paid operating or management personnel, and its gross receipts from bingo or amusement games, or a combination thereof, does not exceed $5,000 per year less the amount awarded as cash or merchandise.

B. No tax may be imposed on the first $10,000 of gross receipts per year, less the amount awarded as cash or merchandise prizes, from raffles conducted by any bona fide charitable or nonprofit organization. (Ord. 765 § 3, 1997; Ord. 397 § 4, 1982).

3.24.050 Payment procedure.

The taxes imposed shall be due and payable in monthly installments, and remittance therefor shall be made on or before the fifteenth day of the month next succeeding the end of the monthly period in which tax accrued. The taxpayer shall, on or before the fifteenth day of said month, make out a return on such forms and setting forth such information as the city treasurer may require, showing the amount of the tax for which he is liable for the preceding monthly period, sign and transmit the same to the city treasurer together with a remittance for such amount, provided:

A. Whenever any person, association or organization taxable hereunder conducting or operating a taxable activity on a regular basis terminates the business, sells out or otherwise disposes of its business, any tax due hereunder shall become due and payable, and such taxpayer shall within 10 days thereafter make a return and pay the tax due;

B. Whenever it appears to the city treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the treasurer, after not less than 10 days’ notice to the taxpayer, is authorized to require that the taxpayer remit taxes and returns at such shorter intervals than monthly as the treasurer shall deem appropriate under the circumstances. (Ord. 397 § 5, 1982).

3.24.060 Administration and collection.

Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the city treasurer. The taxpayer shall be required to swear and affirm by signature that the information given in the return is true, accurate and complete, under penalty of perjury. The treasurer 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 treasurer shall make forms available to the public in reasonable numbers in the treasurer’s office during regular business hours. Along with the tax remittance and return form for each month ending a calendar quarter year, each taxpayer shall submit to the treasurer a copy of his quarterly report to the Washington State Gambling Commission required by Chapter 230-08 WAC, as now or hereafter amended. (Ord. 397 § 6, 1982).

3.24.070 Method and terms of payment.

Taxes payable hereunder shall be remitted to the city 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 a draft or check the tax shall not be deemed paid until the draft or check is collected upon by the city or the bank representing the city. Nor shall the acceptance of any sum of the treasurer be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return and copy of the quarterly report to the Washington State Gambling Commission shall be filed in the office of the treasurer after notation of that office upon the return of the amount actually received. (Ord. 397 § 7, 1982).

3.24.080 Late payment – Penalties and interest charges.

A. If full payment of any tax or fee due under this chapter is not received by the treasurer on or before the date due, there shall be added to the amount due a penalty fee as follows:

1. 1 – 10 days late – 10 percent of tax due;

2. 11 – 20 days late – 15 percent of tax due;

3. 21 – 30 days late – 20 percent of tax due;

4. 31 – 60 days late – 25 percent of tax due.

B. In addition to the above penalty, the treasurer shall charge the taxpayer interest of 12 percent of all taxes and fees due for each 30-day period or portion thereof that said amounts are past due. Failure to make payment in full of all tax amounts and penalties within 60 days following the day the tax amount initially became due shall be both a civil and a criminal violation of this section. (Ord. 397 § 8, 1982).

3.24.090 Filing – Prerequisite to commencement of taxable activity.

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 treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the 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 which is not for the purpose of regulation of this activity, but for the purposes of administration of this taxing ordinance only. Failure to timely file shall not excuse any person, association or organization from tax liability. (Ord. 397 § 9, 1982).

3.24.100 Filing – Required following license expiration, suspension or revocation.

A new declaration of intent to conduct or operate any of the activities taxable under this chapter shall be required prior to the recommencement of the activity following the expiration, suspension or revocation of any license previously issued by the Washington State Gambling Commission in the same manner as described in GHMC 3.24.090. (Ord. 397 § 10, 1982).

3.24.110 Records of activity required.

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 hereunder 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 period required by those agencies. 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 during normal business hours with or without notice at the place where such records are kept on demand by the city council, the city attorney, the treasurer, or the auditor, or their designees, for the purpose of enforcing the provisions of this taxing chapter. Failure of a taxpayer to keep books and records as required by this section shall be a bar to contesting the assessment of taxes as estimated by the city treasurer.

B. 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 above officials or their designees 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 five days following a request of the above officials that he do so; or

2. Bear the actual cost of inspection by the above officials or their designees at the location where such books, records or items are located, provided that a taxpayer choosing to bear these costs shall pay in advance to the above-stated officials or their designees 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. (Ord. 397 § 11, 1982).

3.24.120 Overpayments and underpayments – Refunds and penalties.

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 treasurer that within three years immediately preceding receipt by the treasurer of the application by the taxpayer for a refund, or an audit in the absence of such an application, within the three years immediately preceding the commencement by the treasurer 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 refunded to the taxpayer at the taxpayer’s option. No refund or credit shall be allowed with respect to the treasurer for more than three years before the date of such application for 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 treasurer shall mail a statement by certified mail to the taxpayer showing the balance due, including the tax amount or the penalty, assessments and fees, and it shall be a separate additional violation of this chapter if a taxpayer fails to make a payment in full within 10 calendar days of such mailing. (Ord. 397 § 12, 1982).

3.24.130 Failure to file return – Treasurer authorized to set tax due.

If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the 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 certified mail to notify such taxpayer of the amount so determined, which amount shall thereupon become the tax penalty and/or interest and shall become immediately due and payable. (Ord. 397 § 13, 1982).

3.24.140 Rules and regulations – Treasurer to adopt, publish and enforce.

The treasurer shall have the power and it shall be his duty from time to time to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with superior law for the purposes of carrying out the provisions hereof, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 397 § 15, 1982).

3.24.150 Tax separate from license fees.

The tax herein levied shall be additional 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. 397 § 14, 1982).

3.24.160 Tax due constitutes debt to city.

Any tax due and unpaid under this chapter, and all penalties or fees, shall constitute a debt to the city of Gig Harbor, a legal subdivision of the state of Washington, 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. 397 § 16, 1982).

3.24.170 Four-year limit on 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 four 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 four calendar years from the date such payment was made. (Ord. 397 § 17, 1982).

3.24.180 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 treasurer pursuant thereto, and upon conviction thereof, shall be punished by a fine in any sum not to exceed $300.00 or by imprisonment in the Pierce County Jail for a term not exceeding 90 days, or by both such fine and imprisonment. 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 in which the gambling activity is carried on. (Ord. 397 § 18, 1982).