CHAPTER 2
GAMBLING; TAX LEVY
SECTION:
4-2-3: Tax Computed And Paid Monthly; Exceptions
4-2-4: Administration And Collection Of Tax
4-2-6: Failure To Make Timely Payment; Penalty Added
4-2-7: Filing Of Notice Of Intent To Engage In Activity
4-2-9: Overpayment Or Underpayment Of Tax
4-2-10: Failure To Make Return
4-2-11: Tax Additional To Others
4-2-12: Tax Constitutes Debt To City
4-2-13: Limitation On Right To Recovery
4-2-1 DEFINITIONS:
For the purposes of this chapter, the words and terms used shall have the same meanings as each has under Revised Code of Washington chapter 9.46, each as amended, and under the rules of the Washington state gambling commission, Washington administrative code chapter 230, unless otherwise specifically provided or the context in which they are used herein clearly indicates that they be given some other meanings. (Ord. 196, 7-12-1976; amd. 2006 Code)
4-2-2 TAX LEVY:
A. Tax Imposed: There is hereby levied upon all persons, associations and organizations conducting or operating within the city any of the activities listed below a tax in the following amounts to be paid to the city:
1. Bingo and raffles, in the amount of five percent (5%) of the gross receipts, less the amount awarded as cash or merchandise as prizes.
2. Amusement games, only to the extent of an amount sufficient to pay the actual costs of enforcement of the provisions of this chapter. In no event shall such taxation exceed two percent (2%) of the gross receipts from the amusement game, less the amount awarded as prizes.
3. Punchboards or pull tabs, in the amount of three percent (3%) of the gross receipts directly from the operation of the punchboards or pull tabs themselves.
4. Social card games, in the amount of three percent (3%) of the gross revenue from such games.
B. Exclusions:
1. No tax shall be imposed under the authority of this chapter on bingo or amusement games when such activities, or any combinations thereof, are conducted by any "bona fide charitable or nonprofit organization" as defined in Revised Code of Washington 9.46.0209, which organization has not paid operating or management personnel and has gross receipts from bingo or amusement games, or a combination thereof, not exceeding five thousand dollars ($5,000.00) per year, less the amount awarded as cash or merchandise prizes, but shall, nevertheless, file a declaration of intent required in section 4-2-7 of this chapter.
2. No tax shall be imposed on the first ten thousand dollars ($10,000.00) of gross receipts, less the amount awarded as cash or merchandise prizes, from raffles conducted by any "bona fide charitable or nonprofit organization" as defined in Revised Code of Washington 9.46.0209. (Ord. 669, 2-9-2004)
4-2-3 TAX COMPUTED AND PAID MONTHLY; EXCEPTIONS:
A. Computation; Time Of Payment: Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each month, shall be due and payable in monthly installments, and remittance therefor, together with return forms, shall be made to the city on or before the fifteenth day of the month following that in which the revenue is received.
B. Exceptions: The following exceptions to this payment schedule shall be required:
Whenever any person, association or organization taxable hereunder conducting or operating a taxable activity on a regular basis discontinues operation of that taxable activity for a period of more than one month, or quits business, sells out, or otherwise disposes of its business, or terminates the business, any tax due hereunder shall become due and payable, and such taxpayer shall, within ten (10) days thereafter, make a return and pay the tax due. (Ord. 327, 3-11-1985)
4-2-4 ADMINISTRATION AND COLLECTION OF TAX:
A. Responsibility Of City And Taxpayer:
1. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the city clerk-treasurer.
2. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the city clerk-treasurer.
3. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.
B. Forms For Returns:
1. The city clerk-treasurer is authorized, but not required, to mail to taxpayers forms for returns.
2. Failure of the taxpayer to receive such a form shall not excuse a taxpayer from making the return and timely paying all taxes due.
3. The city clerk-treasurer shall make forms available to the public in reasonable numbers at the city hall during regular business hours. (Ord. 196, 7-12-1976)
C. Report Required: In addition to the return form, a copy of the taxpayer’s report to the Washington state gambling commission required by Washington administrative code 230-08 for the period in which the tax accrued, shall accompany remittance of the tax amount due. (Ord. 196, 7-12-1976; amd. 2006 Code)
4-2-5 METHOD OF PAYMENT:
Taxes payable hereunder shall be remitted to the city clerk-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 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 clerk-treasurer be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return, and copy of quarterly report to the Washington state gambling commission, shall be filed in the office of the city clerk-treasurer after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 196, 7-12-1976)
4-2-6 FAILURE TO MAKE TIMELY PAYMENT; PENALTY ADDED:
If full payment of any tax or fee due under this chapter is not received by the city clerk-treasurer on or before the date it becomes due under the provisions of this chapter, there shall be added to the amount due a penalty as follows:
|
1–10 days delinquent |
10 percent of the tax due |
|
11–20 days delinquent |
15 percent of the tax due |
|
21–30 days delinquent |
20 percent of the tax due |
|
31 or more days delinquent |
25 percent of the tax due |
but in no event shall the penalty amount be less than twenty five dollars ($25.00). (Ord. 504, 8-12-1996)
4-2-7 FILING OF NOTICE OF INTENT TO ENGAGE IN ACTIVITY:
A. Filing Required; No Fee:
1. 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 clerk-treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the city clerk-treasurer, together with a copy of the license issued therefor by the Washington state gambling commission.
2. The filing shall be made not later than fifteen (15) days prior to conduction or operation of the taxable activity.
3. No fee shall be charged for such filing, which is not for the purpose of regulation of this activity but for the purpose of administration of this taxing chapter only.
B. Failure To File: Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 196, 7-12-1976)
4-2-8 RECORDS REQUIRED:
A. Maintaining Records:
1. 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.
2. Such records shall be kept and maintained for a period of not less than three (3) years.
3. In addition, all information and items required by the Washington state gambling commission under Washington administrative code 230-08, and the United States internal revenue service respecting taxation shall be kept and maintained for the periods required by those agencies.
B. Inspection: 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 at any time, with or without notice, at the place where such records are kept, upon demand by the city clerk-treasurer or his designee for the purpose of enforcing the provisions of this taxing chapter.
C. Alternative Actions: 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 city clerk-treasurer 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 (5) days following a request of the local official that he do so; or
2. Bear the actual cost of inspection by the city clerk-treasurer 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 clerk-treasurer the estimated cost 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. 196, 7-12-1976)
4-2-9 OVERPAYMENT OR UNDERPAYMENT OF TAX:
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 city clerk-treasurer that within three (3) years immediately preceding receipt by the city clerk-treasurer of the application by the taxpayer for a refund, or an audit, or, in the absence of such an application, within the three (3) years immediately preceding the commencement by the city clerk-treasurer of such examination:
A. Overpayment: 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 (3) years 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 allowed with respect to the city clerk-treasurer more than three (3) years before the date of such application or examination.
B. Underpayment: 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 clerk-treasurer 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 (10) calendar days of such mailing. (Ord. 196, 7-12-1976)
4-2-10 FAILURE TO MAKE RETURN:
If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the city clerk-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 mail to notify such taxpayer of the amount so determined, which account shall thereupon become the tax and penalty and/or interest and shall become immediately due and payable. (Ord. 196, 7-12-1976)
4-2-11 TAX ADDITIONAL TO OTHERS:
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. 196, 7-12-1976)
4-2-12 TAX CONSTITUTES DEBT TO CITY:
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city, a municipal corporation, 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. 196, 7-12-1976)
4-2-13 LIMITATION ON RIGHT TO RECOVERY:
The right of recovery by the city from the taxpayer for any tax provided hereunder shall be outlawed after the expiration of three (3) 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 (3) calendar years from the date such payment was made. (Ord. 196, 7-12-1976)
4-2-14 VIOLATIONS; PENALTIES:
A. Violations; Penalty Imposed: Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the city council pursuant thereto shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to penalty as provided in section 1-4-1 of this code. (Ord. 504, 8-12-1996; amd. 2006 Code)
B. Gambling: Any taxpayer who engages in, or carries on, any gambling activity subject to a tax under this chapter without having complied with the provisions of this chapter is guilty of a violation of this chapter for each day in which the gambling activity is carried on. (Ord. 504, 8-12-1996)