Chapter 3.20
GAMBLING TAX
Sections:
3.20.040 Charitable, nonprofit organization – Declaration of intent to conduct gambling activity.
3.20.050 Tax due date – Delinquency.
3.20.010 Imposed.
Pursuant to RCW 9.46.110, 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 paid for as 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, and which rate will generate an amount sufficient to pay the actual costs of enforcement of the provisions of this chapter and Chapter 9.46 RCW;
C. Punchboards or pull-tabs at a rate of five percent of gross receipts;
D. All social card game rooms licensed under the provisions of RCW 9.46.030(1) and (4) at a rate equal to 11 percent of the annual gross receipts exceeding $10,000. (Ord. O-00-113 § 1; Ord. O-97-18 § 1).
3.20.020 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. O-97-18 § 2).
3.20.030 Administration.
The administration and collection of the tax imposed by MVMC 3.20.010 shall be by Finance and pursuant to the rules and regulations of the Washington State Gambling Commission. Finance is instructed and authorized to adopt appropriate reporting requirements to ensure the effective administration of license holders exempt from the payment of the tax and to make such further rules and regulations for the purpose of carrying out the provisions of this chapter. (Ord. O-97-18 § 3).
3.20.040 Charitable, nonprofit organization – Declaration of intent to conduct gambling activity.
For the purpose of identifying the persons, associations and organizations that shall be subject to the tax imposed by MVMC 3.20.010, any bona fide charitable or nonprofit corporation intending to conduct or operate any bingo game, raffle or amusement game which requires licensing as provided in and authorized by Chapter 9.46 RCW, as the same now exists or may be hereafter amended, shall, prior to commencement of any such activity, file with Finance 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, as amended. Thereafter, for any period covered by such State license or any renewal thereof, any such licensed bona fide charitable or nonprofit corporation shall, on or before the fifteenth day of the month following the end of the quarterly period in which the tax accrued, file with Finance a sworn statement, on a form to be provided and prescribed by Finance, for the purpose of ascertaining the tax due for the preceding quarterly period. (Ord. O-97-18 § 4).
3.20.050 Tax due date – Delinquency.
A. The tax imposed by MVMC 3.20.010 shall be due and payable in quarterly installments, and remittance therefor shall accompany such return and be made on or before the thirtieth day of the month next succeeding the quarterly period in which the tax accrued.
B. For each payment due, if such payment is not made by the due date thereof, there shall be added a penalty as follows:
1. If paid on or before the fifteenth day of the second month next succeeding the quarterly period in which the tax accrued, 10 percent with a minimum penalty of $5.00;
2. If paid prior to the thirtieth day of the second month next succeeding the quarterly period in which the tax accrued, 15 percent with a minimum penalty of $10.00;
3. Failure to make payment by the thirtieth day of the second month succeeding the quarterly period in which the tax accrued shall result in a penalty of 20 percent with a minimum penalty of $15.00. (Ord. O-97-18 § 5).
3.20.060 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 Finance may require to determine full compliance with this chapter. (Ord. O-97-18 § 6).
3.20.070 Definitions.
For the purposes of this chapter, the terms used herein shall have the same meanings as defined in Chapter 9.46 RCW, as the same now exists or may hereafter be amended. (Ord. O-97-18 § 7).
3.20.080 Unlawful acts.
It is unlawful for any person liable for the tax imposed by this chapter to fail to pay the tax when due or for any person to make any false or fraudulent return or any false statement in connection with the return. (Ord. O-97-18 § 8).
3.20.090 Penalty.
Any person violating any provision of this chapter shall be guilty of a misdemeanor and upon conviction thereof punished pursuant to State law or City ordinance. (Ord. O-97-18 § 9).