Chapter 5.24
GAMBLING ACTIVITIES
Sections:
5.24.040 Administration and collection.
5.24.080 Registration after interruption.
5.24.090 Records – Inspection.
5.24.110 Failure to file return.
5.24.120 Other taxes unimpaired.
5.24.140 Expiration of right of recovery.
5.24.010 Definitions.
For the purpose of this chapter, the words and terms shall have the same meaning each has under Chapter 218, Laws of 1973, 1st Ex. Sess. and Chapter 9.46 RCW, each as amended, and under the rules of the Washington State Gambling Commission, Chapter 230 WAC, unless otherwise specifically provided or as the context in which they are used clearly indicates that they be given some other meaning. (Ord. 531, 1991)
5.24.020 Levied – Rate.
There is levied upon all persons, associations and organizations conducting or operating within the city any of the activities listed below a tax on the following amounts to be paid to the city:
A. 1. Any punchboards or pull tabs, in the amount of three percent of the net gambling receipts (as defined in WAC 230-02-120) directly from the operation of the punchboards or pull tabs themselves; said rate to be in effect from April 1, 1991 to March 31, 1992.
2. Effective April 1, 1992, the tax levied will increase to four percent of the net gambling receipts (as defined in WAC 230-02-120); said rate to be in effect from April 1, 1992 to March 31, 1993.
3. Effective April 1, 1993, the tax levied will increase to five percent of the net gambling receipts (as defined in WAC 230-02-120); said rate to remain in effect until changed by ordinance.
B. 1. Social card games and/or any other gambling activity: these activities shall be taxed at the rate of one percent on the net gambling receipts therefrom; provided, further, that the tax shall apply solely to those social card games and/or other gambling activity, including fundraising events conducted, held or operated as a “commercial stimulant” as defined in this chapter. Specifically, such tax shall apply only to such activities conducted in a “public cardroom” as defined in WAC 230-02-410. Said rate to be in effect from April 1, 1991 to March 31, 1992.
2. Effective April 1, 1992, the tax levied will increase to three percent of the net gambling receipts (as defined in WAC 230-02-120); said rate to remain in effect from April 1, 1992 to March 31, 1993.
3. Effective April 1, 1993, the tax levied will increase to five percent of the net gambling receipts (as defined in WAC 230-02-120); said rate to remain in effect until changed by ordinance.
C. The taxes described in this chapter shall not apply to bona fide charitable organizations as defined in RCW 19.09.020, and/or Section 501(c)(3) of the Internal Revenue Code. (Ord. 531, 1991)
5.24.030 Remittance schedule.
The taxes imposed under this chapter shall be due and payable in quarterly 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 the month make out a return on such forms and setting forth such information as the clerk/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 clerk/treasurer together with a remittance for such amount, provided:
A. Whenever any 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 its 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 clerk/treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the clerk/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 clerk/treasurer deems appropriate under the circumstances. (Ord. 531, 1991)
5.24.040 Administration and collection.
Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the clerk/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 clerk/treasurer is authorized but not required to mail to the taxpayer 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 clerk/treasurer shall make forms available to the public in reasonable numbers in the clerk/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 clerk/treasurer a copy of his quarterly report to the Washington State Gambling Commission required by Chapter 230-08 WAC as amended as of or after the effective date of the ordinance codified in this chapter. (Ord. 531, 1991)
5.24.050 Form of payment.
Taxes payable under this chapter shall be remitted to the 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 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 clerk/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 clerk/treasurer after notation of that office upon the return of the amount actually received. (Ord. 531, 1991)
5.24.060 Delinquency.
A. If full payment of any tax or fee due under this chapter is not received by the clerk/treasurer on or before the date due, there shall be added to the amount due a penalty fee as follows:
1. One through 10 days late, five percent of tax due;
2. Eleven through 20 days late, 10 percent of tax due;
3. Twenty-one through 30 days late, 15 percent of tax due;
4. Thirty-one through 60 days late, 20 percent of tax due.
B. In no event shall the penalty amount be less than $25.00. In addition to this penalty, the clerk/treasurer shall charge the taxpayer interest of one and one-half percent of all taxes and fees due for each 30-day period 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 is both a civil and a criminal violation of this section. (Ord. 531, 1991)
5.24.070 Registration.
In order that the city may identify those persons that are subject to taxation under this chapter, each person, association or organization shall file with the clerk/treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the clerk/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 purpose of administration of this taxing chapter only. Failure to timely file shall not excuse any person, association, or organization from tax liability. (Ord. 531, 1991)
5.24.080 Registration after interruption.
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 prescribed in SMC 5.24.070. (Ord. 531, 1991)
5.24.090 Records – Inspection.
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, without notice, at the place where such records are kept, on demand by the city council, the city attorney, or the clerk/treasurer, 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 clerk/treasurer. 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-stated officials or their designees may examine them conveniently, the taxpayer shall either:
A. Produce all of the required books, records or items within the jurisdiction for such inspection for 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 the examination of the records. (Ord. 531, 1991)
5.24.100 Refund or audit.
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 clerk/treasurer that within three years immediately preceding receipt by the clerk/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 clerk/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 clerk/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 clerk/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 payment in full within 10 calendar days of such mailing. (Ord. 531, 1991)
5.24.110 Failure to file return.
If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the 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 certified mail to notify such taxpayer of the tax penalty and/or interest and shall become immediately due and payable. (Ord. 531, 1991)
5.24.120 Other taxes unimpaired.
The tax levied in this chapter shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the city except as otherwise expressly provided in this chapter. (Ord. 531, 1991)
5.24.130 Debt status of tax.
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 existing remedies. (Ord. 531, 1991)
5.24.140 Expiration of right of 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 the 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. 531, 1991)
5.24.150 Enforcement.
The city 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 of this chapter, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 531, 1991)
5.24.160 Violation – Penalty.
Any person violating or failing to comply with any of the provisions of this chapter or any unlawful rule or regulation adopted by the clerk/treasurer pursuant thereto, and upon conviction thereof, shall be punished by a fine in any sum not to exceed $500.00 or by imprisonment 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 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. 531, 1991)