Chapter 3.28
GAMBLING TAX
Sections:
3.28.025 Prohibited activities.
3.28.030 Due in quarterly installments.
3.28.050 Administration and collection.
3.28.070 Delinquent tax returns—Late payment—Penalty.
3.28.080 Filing of notice of intention.
3.28.110 Records—Kept outside jurisdiction.
3.28.120 Records—Jeopardy fee.
3.28.130 Overpayment or underpayment.
3.28.140 Failure to file return.
3.28.150 Additional to others.
3.28.160 Authority of city finance director.
3.28.170 Unpaid taxes a debt to municipality.
3.28.010 Definitions.
For the purposes of this chapter, the words and terms used herein shall have the same meaning as each has under RCW Chapter 9.46, and under the rules of the Washington State Gambling Commission, WAC Title 230, as such definitions presently exist or are hereafter amended, unless otherwise specifically provided or the context in which they are used in this chapter clearly indicates that they are given some other meaning. (Ord. 97-37 § 1 (part), 1997: Ord. 75-3 § 1, 1975)
3.28.020 Amount.
A. There is levied upon all persons, associations and organizations conducting or operating within the city of Poulsbo any of the activities listed below, a tax in the following amounts to be paid to the city of Poulsbo:
|
Activity |
Tax Rate |
|
1. Conduct of any bingo or raffle game |
Five percent of the gross revenue received after the amount paid as cash or merchandise prizes is deducted |
|
2. Conduct or operation of any amusement game |
Two percent of the gross revenue received after the amount paid as prizes is deducted |
|
3. Operation of pull tabs as a commercial stimulant |
Five percent of the gross revenue received |
|
4. Operation of pull tabs by bona fide charitable or nonprofit organization |
Ten percent of the gross revenue received after the amount paid for prizes or as prizes is deducted |
|
5. Operation of a cardroom for social card games as a commercial stimulant upon any premises |
Twelve percent of the gross revenue received from such card games per year |
B. Provided, however, that no tax shall be imposed on bingo, raffles or amusement games when such activities or any combination thereof are conducted by any bona fide or nonprofit organization as defined in RCW 9.46.020(3), which organization has no paid operating or management personnel and 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. (Ord. 99-29 § 1, 1999; Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 1, 1995; Ord. 86-52 § 1, 1986; Ord. 77-27 § 2, 1977: Ord. 75-3 § 3, 1975)
3.28.025 Prohibited activities.
Pursuant to RCW 9.46.295, the city prohibits the following gambling activities within the city limits, as the same now exist or as they may be amended:
A. Public cardrooms and card games within such rooms, as those terms are defined and said activities are authorized in WAC Chapters 230-02 and 230-40.
B. Social card games as a commercial stimulant, as those terms are defined and those activities are authorized in RCW Chapter 9.46 and WAC Chapters 230-02 and 230-40. (Ord. 2000-14 § 1, 2000)
3.28.030 Due in quarterly installments.
Except as otherwise provided in this chapter, the taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter, shall be due and payable in quarterly installments, and remittance therefor, together with return forms, shall be made to the city on or before the last day of the month succeeding the quarterly period in which the tax accrued (i.e., on January 31st, April 30th, July 31st and October 31st of each year). (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 2, 1995)
3.28.040 Exceptions.
A. Except as provided in subsection B of this section, whenever any person, association or organization under this chapter conducting or operating a taxable activity for a period of more than four consecutive weeks, or quits business, sells out or otherwise disposes of its business, or terminates the business, any tax due under this chapter shall become due and payable, and the taxpayer shall, within ten days thereafter, make a return and pay the tax due.
B. It is recognized that some bona fide charitable or bona fide nonprofit organization taxpayers will be conducting or operating taxable activities only upon an occasional and random basis. Except as provided in subsection C of this section, when such a taxpayer conducts only one taxable activity during any calendar quarter, and the duration of each such activity does not exceed fifteen consecutive calendar days, and the gross receipts therefrom do not exceed one thousand five hundred dollars per quarter, that taxpayer need not remit the tax due with a return therefor until on or before January 31st of the year following that year in which the activity took place. The returns shall be made upon a special form to be supplied by the city finance department.
C. Whenever it appears to the city finance director that the collection of taxes from any person, association or organization may be in jeopardy, that officer, after not less than five days’ notice to the taxpayer, is authorized to require that taxpayer to remit taxes and returns at such shorter intervals than quarterly or annually, as that officer deems appropriate under the circumstances. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 3, 1995: Ord. 75-3 § 4(a—c), 1975)
3.28.050 Administration and collection.
A. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the city finance director. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the city. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.
B. The city finance director is authorized, but not required, to mail to taxpayers forms for returns. Failure of the taxpayer to receive such a form shall not excuse a taxpayer from making the return and timely paying all taxes due. The city finance director shall make forms available to the public in reasonable numbers in 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 WAC Title 230 for the period in which the tax accrued and monthly income summary sheets shall accompany remittance of the tax amount due. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 4, 1995)
3.28.060 Method of payment.
Taxes payable under this chapter shall be remitted to the city finance director 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 draft or check, the tax shall not be deemed paid until the draft or check is honored in the usual course of business, nor shall the acceptance of any sum by the city finance director be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return, copy of quarterly report to the Washington State Gambling Commission, and monthly income summary sheets shall be filed in the office of the city finance director after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 5, 1995)
3.28.070 Delinquent tax returns—Late payment—Penalty.
Penalties shall be assessed as follows:
1. If payment of gambling tax due is not received by the city within one to ten days of the due date, there shall be assessed a penalty which shall be due immediately of five percent of the amount of the tax due and a minimum of five dollars; and
2. If any tax is not received by the city within eleven to twenty days after the due date, there shall be assessed a total penalty which shall be due immediately of seven and one-half percent of the amount of the tax due with a minimum penalty of ten dollars; and
3. If any tax is not received by the city within twenty-one to thirty-one days after the due date, there shall be assessed a total penalty which shall be due immediately of ten percent of the amount of the tax due with a minimum penalty of twenty dollars;
4. If any tax is not received by the city within thirty-two to sixty-two days after the due date, there shall be assessed a total penalty which shall be due immediately of fifteen percent of the amount of the tax due with a minimum penalty of twenty-five dollars;
5. In addition to the above penalties, the city shall assess a penalty of twenty percent of all taxes due for each thirty day period in excess of sixty-two days that such taxes are past due. (Ord. 99-08 § 1, 1999: Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 6, 1995)
3.28.080 Filing of notice of intention.
A. In order that the city of Poulsbo may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the city finance director a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by that officer, together with a copy of the license issued therefor by the Washington State Gambling Commission.
B. The filing shall be made not later than ten days prior to conducting or operating the taxable activity.
C. 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.
D. Failure to timely file shall not excuse any person, association or organization from any tax liable. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 7, 1995; Ord. 75-3 § 8, 1975)
3.28.090 Records—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 discloses 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 WAC Title 230, and the United States Internal Revenue Service respecting taxation, shall be kept and maintained for the periods required by those agencies. (Ord. 97-37 § 1 (part), 1997: Ord. 75-3 § 9 (part), 1975)
3.28.100 Records—Inspection.
All books, records and other items required to be kept and maintained under Section 3.28.090 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 demand by the city finance director or his designees, for the purpose of enforcing the provisions of this chapter. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 8, 1995)
3.28.110 Records—Kept outside jurisdiction.
When a taxpayer does not keep all of the books, records or items required to be kept or maintained under Section 3.28.090 in the city, the taxpayer shall either:
A. Produce all of the required books, records or items within the city for such inspection within fifteen days following a request of the local official that he do so; or
B. Bear the actual cost of inspection by the city finance director or his designee, at the location at which such books, records or items are located; provided, that a taxpayer choosing to bear these costs shall pay in advance to the city finance director the estimated cost thereof, including but not limited to, roundtrip 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 the examination of the records. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 9, 1995)
3.28.120 Records—Jeopardy fee.
A. A taxpayer who fails, neglects or refuses to produce such books and records either within or without his or her possession or control, in addition to being subject to other civil and criminal penalties provided by this chapter, is subject to a jeopardy fee or tax assessment by the city clerk-treasurer.
B. This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the city finance director by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the city finance director 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 due and payable. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 10, 1995)
3.28.130 Overpayment or underpayment.
If, upon application by a taxpayer for a refund or for an audit of his or her records, or upon any examination of the returns or records of any taxpayer, it is determined by the city finance director that within three years immediately preceding receipt by the city finance director 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 finance director of the examination:
A. A tax or other fee has been paid in excess of that properly due, the total excess paid over the amounts due to the city within the three-year period 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 granted for any period of time prior to three years before the date of the 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 finance director 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. 97-37 § 1 (part), 1997: Ord. 95-5 § 11, 1995)
3.28.140 Failure to file return.
If any taxpayer fails, neglects or refuses to make and file his or her return as and when required under this chapter, the city 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 mail to notify the 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. 97-37 § 1 (part), 1997: Ord. 95-5 § 12, 1995)
3.28.150 Additional to others.
The tax levied in this chapter is additional to any license fee or tax imposed or levied under any law or other ordinance of the city of Poulsbo, Washington, except as otherwise expressly provided in this chapter. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 13, 1995)
3.28.160 Authority of city finance director.
The city finance director shall have the power, and it shall be his or her duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with superior law, for the purpose of carrying out the provisions of this chapter, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 14, 1995)
3.28.170 Unpaid taxes a debt to municipality.
Any tax due and unpaid under this chapter, and all penalties or fees, constitute a debt to the city of Poulsbo, a municipal corporation, and may be collected by court proceedings the same as any other debt in like amount which is in addition to all other existing remedies. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 15, 1995)
3.28.180 Right of recovery.
The right of recovery by the city of Poulsbo from the taxpayer for any tax provided under this chapter shall be barred after the expiration of three calendar years from the date the tax became due. The right of recovery against the city of Poulsbo because of overpayment of tax by any taxpayer shall be barred after the expiration of three calendar years from the date the payment was made. (Ord. 97-37 § 1 (part), 1997: Ord. 95-5 § 16, 1995)
3.28.190 Appeals.
Any person aggrieved by a decision or determination of the finance director, shall have the right to appeal such determination to the city council by filing a notice of appeal within ten days after the determination is made, and the city council has the power to affirm, disaffirm or modify such administrative determination and any person aggrieved by any determination of the city council has the right of appeal to the superior court of Kitsap County in accordance with applicable law. (Ord. 97-37 § 1 (part), 1997: Ord. 75-3 § 17, 1975)
3.28.200 Violation—Penalty.
A. Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the finance director pursuant thereto, shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine not to exceed one thousand dollars, or by imprisonment for a term not exceeding ninety days, or by both such fine and imprisonment.
B. Each day during which a gambling activity subject to a tax under this chapter is engaged in or carried on without having complied with the provisions of this chapter shall constitute a separate violation of this chapter. (Ord. 97-37 § 1 (part), 1997: Ord. 75-3 § 16, 1975)