Chapter 5.36
AUTHORIZED GAMBLING AND TAX*
Sections:
5.36.040 Procedure for payment.
5.36.050 Administration and collection.
5.36.060 Terms of acceptance of payment.
5.36.070 Penalties and interest charges for late payment.
5.36.080 Filing required before operation of taxable activity.
5.36.090 Filing – New declaration necessary after license expiration, suspension or revocation.
5.36.100 Records of activity required.
5.36.110 Overpayment and underpayment – Refunds and penalties.
5.36.130 Tax separate from license fee.
5.36.140 Rules and regulations – Council to adopt, publish and enforce.
5.36.150 Tax due constitutes debt.
5.36.160 Three-year limit on recovery.
5.36.170 Violations – Penalty.
5.36.180 Pierce County Code sections adopted by reference.
5.36.190 Revised Code of Washington statutes adopted by reference.
*Prior legislation: Ord. 1091.
5.36.010 Definitions.
For the purpose of this chapter, the words and terms used shall have the same meaning each has under Chapter 218, Laws of 1973, 1st Extraordinary Session and Chapter 9.46 RCW, each as amended, and under the rules of the Washington State Gambling Commission, WAC Title 230, unless otherwise specifically provided or as the context in which they are used clearly indicates that they be given some other meaning. (Ord. 1434 § 1, 1999).
5.36.020 Tax levied.
There is levied upon all persons, associations and organizations conducting or operating within the city any of the activities listed in this section, a tax in the following amounts to be paid to Milton:
A. Bingo and raffles in the amount of five percent of the gross revenue received therefrom less the amount paid for or as prizes;
B. Any punch boards or pull-tabs in the amount of five percent of the gross receipts directly from the operation of the punch boards or pull-tabs themselves;
C. Card playing in the amount of 20 percent of the gross receipts received as fees charged persons for the privilege of playing in card games;
D. Amusement games only to the extent of an amount sufficient to pay the actual costs of enforcement of the provisions of this chapter, and in no event shall such taxation exceed two percent of the gross revenue therefrom, less the amount paid for or as prizes. (Ord. 1533 § 1, 2002; Ord. 1434 § 1, 1999).
5.36.030 Exemptions from tax.
No tax shall be imposed under the authority of 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 9.46.0209, and which organization has not paid operating or management personnel and has gross income from such activities less the amount paid for prizes not exceeding $10,000 per year. (Ord. 2018 § 8, 2021; Ord. 1434 § 1, 1999).
5.36.040 Procedure for payment.
The taxes imposed under this chapter 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 the 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 administration and finance director 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 finance department together with a remittance for such amount, provided:
A. Whenever a person, association or organization taxable under this chapter conducting or operating a taxable activity on a regular basis terminates the business, sells out or otherwise disposes of this 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.
B. Whenever it appears to the administration and finance director that the collection of taxes from any person, association or organization may be in jeopardy, the administration and finance director 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 finance department shall deem appropriate under the circumstances. (Ord. 2018 § 10, 2021; Ord. 1434 § 1, 1999).
5.36.050 Administration and collection.
Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the administration and finance director. The taxpayer shall be required to swear and affirm by signature that the information given on the return is true, accurate and complete under penalty of perjury. The administration and finance director shall make forms available to the public in reasonable numbers in the administration and finance director’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 administration and finance director a copy of his quarterly report to the Washington State Gambling Commission required by Chapter 230-08 WAC as now or hereafter amended. (Ord. 1434 § 1, 1999).
5.36.060 Terms of acceptance of payment.
Taxes payable under this chapter shall be remitted to the administration and finance director on or before the time required by bank draft, certified check, cashier’s check, personal check, debit/credit card, 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 accepted in the usual course of business. Nor shall the acceptance of any sum by the administration and finance director 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 with the administration and finance director after notation of that office upon the return of the amount actually received. (Ord. 2018 § 11, 2021; Ord. 1434 § 1, 1999).
5.36.070 Penalties and interest charges for late payment.
A. If full payment of any tax or fee due under this chapter is not received by the administration and finance director on or before the due date, there shall be added to the amount due a penalty fee as follows:
1. One through 10 days late: 10 percent of tax due;
2. Eleven through 20 days late: 15 percent of tax due;
3. Twenty-one through 30 days late: 20 percent of tax due;
4. Thirty-one through 60 days late: 25 percent of tax due.
B. In addition to the penalty set out in subsection A of this section, the administration and finance director shall charge the taxpayer interest for all taxes and fees due at the rate of one percent per month or portion thereof that the 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. 1434 § 1, 1999).
5.36.080 Filing required before operation 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 administration and finance director a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the administration and finance director 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 chapter only. Failure to timely file shall not excuse any person, association or organization from tax liability. (Ord. 1434 § 1, 1999).
5.36.090 Filing – New declaration necessary after 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 MMC 5.36.080. (Ord. 1434 § 1, 1999).
5.36.100 Records of activity required.
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 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 administration and finance director 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 finance director. 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 state officials or their designees may examine them conveniently, the taxpayer shall either:
A. 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
B. 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. 2018 § 12, 2021; Ord. 1434 § 1, 1999).
5.36.110 Overpayment and underpayment – 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 administration and finance director that within three years immediately preceding receipt by the administration and finance director 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 finance director 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 finance director 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 administration and finance director shall mail a statement by certified mail to the taxpayer showing the balance due including the tax amount of 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. 2018 § 13, 2021; Ord. 1434 § 1, 1999).
5.36.120 Failure of taxpayer to file return – Administration and finance director 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 administration and finance director 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. 1434 § 1, 1999).
5.36.130 Tax separate from license fee.
The tax levied in this chapter shall be additional to any license fee or tax imposed or levied under any law or any other resolution of the city except as otherwise expressly provided in this chapter. (Ord. 1434 § 1, 1999).
5.36.140 Rules and regulations – Council to adopt, publish and enforce.
The council shall have the power and it shall be their 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 shall be unlawful to violate or fail to comply with any such rule or regulation. (Ord. 1434 § 1, 1999).
5.36.150 Tax due constitutes debt.
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city, 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 existent remedies. (Ord. 1434 § 1, 1999).
5.36.160 Three-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 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. 1434 § 1, 1999).
5.36.170 Violations – 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 administration and finance director pursuant thereto shall be guilty of a misdemeanor. Any taxpayer who engages in or carries on any gambling activities subject to a tax under this chapter 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. 1434 § 1, 1999).
5.36.180 Pierce County Code sections adopted by reference.
Pierce County Code Sections 4.04.010 through 4.04.170 are adopted by reference. (Ord. 1434 § 1, 1999).
5.36.190 Revised Code of Washington statutes adopted by reference.
The following sections of the Revised Code of Washington as now or hereafter amended are hereby adopted by reference as part of this chapter as though such sections were set forth herein in full:
RCW
9.46.010 Legislative declaration.
9.46.0201 Amusement game.
9.46.0205 Bingo.
9.46.0209 Bona fide charitable or nonprofit organization.
9.46.0213 Bookmaking.
9.46.0217 Commercial stimulant.
9.46.0221 Commission.
9.46.0225 Contest of chance.
9.46.0229 Fishing derby.
9.46.0233 Fund raising event.
9.46.0237 Gambling.
9.46.0241 Gambling device.
9.46.0245 Gambling information.
9.46.0249 Gambling premises.
9.46.0253 Gambling record.
9.46.0257 Lottery.
9.46.0261 Member, bona fide member.
9.46.0265 Player.
9.46.0269 Professional gambling.
9.46.0273 Punch boards, pull-tabs.
9.46.0277 Raffle.
9.46.0281 Social card game.
9.46.0285 Thing of value.
9.46.0289 Whoever, person.
9.46.0305 Dice or coin contests for music, food, or beverage payment.
9.46.0311 Charitable, nonprofit organizations – Authorized gambling activities.
9.46.0315 Raffles – No license required when.
9.46.0321 Bingo, raffles, amusement games – No license required, when.
9.46.0325 Social card games, punch boards, pull-tabs authorized.
9.46.0331 Amusement games authorized.
9.46.0335 Sports pools authorized.
9.46.0341 Golfing sweepstakes authorized.
9.46.0345 Bowling sweepstakes authorized.
9.46.0351 Social card, dice games – Use of premises of charitable, nonprofit organizations.
9.46.0355 Promotional contests of chance authorized.
9.46.0361 Turkey shoots authorized.
9.46.070 Gambling commission – Powers and duties.
9.46.110 Taxation of gambling activities – Limitations – Restrictions on punch boards and pull-tabs.
9.46.120 Restrictions as to management or operation personnel – Restriction as to leased premises.
9.46.130 Inspection and audit of premises, paraphernalia, books and records – Reports for the commission.
9.46.150 Injunctions – Voiding of licenses, permits, or certificates.
9.46.153 Applicants and licensees – Responsibilities and duties – Waiver of liability – Investigation statement as privileged.
9.46.158 Applicants, licensees, operators – Commission approval for hiring certain persons.
9.46.170 False or misleading entries or statements, refusal to produce records, as violations – Penalty.
9.46.185 Causing person to violate rules or regulation as violation – Penalty.
9.46.190 Violations relating to fraud or deceit – Penalty.
9.46.192 Cities and towns – Ordinance enacting certain sections of chapter – Limitations – Penalties.
9.46.193 Cities and towns – Ordinance adopting certain sections of chapter – Jurisdiction of courts.
9.46.195 Obstruction of public servant in administration or enforcement as violation – Penalty.
9.46.196 Cheating – Defined.
9.46.198 Working in gambling activity without license as violation – Penalty.
(Ord. 2018 § 14, 2021; Ord. 1434 § 1, 1999).