Chapter 5.49
GAMBLING TAXES

Sections:

5.49.010    Authority for chapter.

5.49.020    Taxes imposed—Amounts—Exemptions.

5.49.025    Prohibition of certain gambling activities if gambling tax is unconstitutional.

5.49.030    Filing of declaration of intent and copy of gambling license required.

5.49.040    Sworn statement and remittance required quarterly.

5.49.050    Late payment—Penalty.

5.49.060    Director of finance and budget authorized to administer chapter.

5.49.070    Duty to make records available.

5.49.080    Unlawful acts—Penalty.

5.49.090    Effective date.

5.49.100    Severability.

5.49.010 Authority for chapter.

This chapter is enacted pursuant to and in accordance with Chapter 9.46 of the Revised Code of Washington as an exercise of the power of the city of Yakima to tax for revenue. (Ord. 1731 § 1 (part), 1974).

5.49.020 Taxes imposed—Amounts—Exemptions.

A.    Tax Imposed. There is levied a tax upon all persons, associations and organizations who conduct or operate gambling activities within the city of Yakima and who have been duly licensed by the Washington State Gambling Commission to conduct or operate such gambling activities. Such tax shall be paid on the following gambling activities in the following respective amounts:

1.    Effective through December 31, 1999, any bingo or raffle, at the rate of ten percent of gross receipts less the amount awarded as cash or merchandise prizes in the conduct of such activity;

2.    Commencing January 1, 2000, any bingo or raffle, at the rate of five percent of the gross receipts less the amount awarded as cash or merchandise prizes in the conduct of such activity;

3.    Any amusement game at the rate of two percent of the gross receipts less the amount awarded as cash or merchandise prizes in the conduct of such activity;

4.    Any punchboard or pulltab, a tax computed at the rate of ten percent of gross receipts less the amount awarded as cash or merchandise prizes in the conduct of such activity;

5.    Any social card game, a tax computed at the rate of ten percent of the gross receipts from the conduct of such activity;

6.    Any public cardroom operated as a commercial stimulant, a tax computed at the rate of ten percent of the gross receipts from the conduct of such activity.

B.    Exemptions.

(1)    A bona fide charitable or nonprofit organization as defined by RCW 9.46.0209 conducting or sponsoring bingo games, raffles, amusement games, or punchboard or pulltabs, when such organization has gross income from bingo, raffles, amusement games, punchboards or pulltabs, or any combination thereof not exceeding fifty thousand dollars per year, less the amount paid for prizes, shall be entitled to exemption from the provisions of this chapter upon compliance with the requirements of YMC 5.49.030, and only the amount of the referenced gross income above fifty thousand dollars per year, less the amount paid for prizes, is subject to the city of Yakima taxes set forth in subsection A of this section.

(2)    A bona fide charitable, nonprofit organization as defined by RCW 9.46.0209 organized for the benefit of and that provides services to United States military veterans, and that limits membership in said organization to veterans of the various branches of the United States military, conducting bingo, raffles, amusement games or gambling within the city shall be exempt from payment of the taxes imposed by this chapter upon compliance with the requirements of YMC 5.49.030.

(3)    Activities carried out by public or private schools or by organizations sponsored by or related to public or private schools, including parent organizations and student body organizations, shall be exempt from the provisions of this chapter upon compliance with YMC 5.49.030 when the proceeds of such activities are applied for the benefit of any such school, or school-sponsored or school-related organization.

(4)    Any deviation from exemption restrictions enumerated herein shall subject such organization to the requirements of this chapter to the same extent as if such exemption had not been granted, including required payment within ten days after written demand of the city department of finance of any taxes formerly granted exemption hereunder. (Ord. 2013-027 § 1, 2013: Ord. 2006-45 § 1, 2006: Ord. 99-43 § 1, 1999: Ord. 97-72 § 1, 1997: Ord. 94-47 § 1, 1994; Ord. 3102 § 1, 1988; Ord. 2506 § 1, 1981: Ord. 2070 § 1, 1977: Ord. 1763 § 1, 1975: Ord. 1731 § 1 (part), 1974).

5.49.025 Prohibition of certain gambling activities if gambling tax is unconstitutional.

A.    If it is determined by a court of competent jurisdiction, in a judgment not subject to review, that all or any part of the gambling taxes set forth in YMC 5.49.020, or the application of those taxes, are unconstitutional, to the end that a judgment invalidates some or all of the tax, prospectively or retroactively or refunds are required; then, beginning on the day the judgment becomes final, the following gambling activities shall be prohibited within the city of Yakima:

1.    Punchboards, as defined in RCW 9.46.0273;

2.    Pulltabs, as defined in RCW 9.46.0273;

3.    Social card games, as defined in RCW 9.46.0281;

4.    Public cardrooms, as defined by WAC 230-02-410.

B.    Nothing in this section shall affect the conduct of any other gambling activities authorized by the state of Washington. (Ord. 93-54 § 2, 1993: Ord. 3032 § 1, 1987).

5.49.030 Filing of declaration of intent and copy of gambling license required.

A.    For the purpose of identifying who shall be subject to the tax imposed by this chapter, any person, association or organization intending to commence the conduct or operation within the city of Yakima of any gambling activity authorized by Chapter 9.45 of the Revised Code of Washington after January 1, 1975, shall, at least ten days prior to the commencement of any such activity, file with the city of Yakima a sworn declaration of intent to conduct or operate such activity specifying the dates, times and places on a form to be prescribed and provided by the director of finance and budget for the city of Yakima, together with a copy of the gambling license issued pursuant to Chapter 9.46 of this code.

B.    Any person, association or organization conducting or operating within the city of Yakima any gambling activity authorized by Chapter 9.46 of the Revised Code of Washington prior to January 1, 1975, and intending to continue the conduct or operation of such gambling activity on or after January 1, 1975, shall, within fifteen days after January 1, 1975, comply fully with the requirements of subsection A of this section with respect to any authorized gambling activity conducted on or after January 1, 1975. (Ord. 93-73 § 1, 1993: Ord. 93-54 § 1, 1993; Ord. 1731 § 1 (part), 1974).

5.49.040 Sworn statement and remittance required quarterly.

A.    Any person, association or organization issued a state gambling license or renewal thereof for any part of a quarterly period of a calendar year shall, on or before the final day of the month following the end of such quarterly period, file with the city of Yakima a sworn statement, on a form to be prescribed and provided by the city, together with a sworn copy of the quarterly activity report as required by the regulations of the Washington State Gambling Commission for the period during which the tax imposed hereunder accrued, for the purpose of ascertaining the tax, if any, due for the preceding quarterly period.

B.    The tax imposed by this chapter shall be due and payable in quarterly installments on or before the final day of the month following the end of the quarterly period in which the tax accrued, and remittance therefor shall accompany the sworn statement required by subsection A of this section. (Ord. 2506 § 2, 1981: Ord. 1816 § 1, 1975: Ord. 1731 § 1 (part), 1974).

5.49.050 Late payment—Penalty.

For each payment due under the provisions of this chapter, 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 following the end of the quarterly period in which the tax accrued, ten percent of the accrued tax or five dollars, whichever is greater;

2.    If paid on or before the final day of the second month following the end of the quarterly period in which the tax accrued, fifteen percent of the accrued tax or ten dollars, whichever is greater;

3.    If paid after the fifteenth of the third month following the end of the quarterly period in which the tax accrued, twenty percent of the accrued tax or fifteen dollars, whichever is greater. (Ord. 1816 § 2, 1975: Ord. 1731 § 1 (part), 1974).

5.49.060 Director of finance and budget authorized to administer chapter.

The director of finance and budget shall have the power and duty to administer this chapter. The director of finance and budget shall have the power to adopt and publish such rules and regulations not in conflict with rules and regulations of the Washington State Gambling Commission as may be reasonably necessary to enable the collection of the tax imposed in this chapter. (Ord. 93-73 § 2, 1993: Ord. 1731 § 1 (part), 1974).

5.49.070 Duty to make records available.

It shall be the responsibility of all officers, directors and managers of any organization conducting any gambling activities subject to taxation under this chapter to make available at all reasonable times such financial records as the chief of the Yakima police department or his designee shall require in order to determine full compliance with this chapter. (Ord. 1731 § 1 (part), 1974).

5.49.080 Unlawful acts—Penalty.

A.    Any person who knowingly fails or refuses to comply with any provisions of this chapter or with any rule or regulation promulgated by the director of finance and budget, or supplies false or fraudulent information in required declarations or statements, or aids and abets any violation of this chapter, is guilty of a misdemeanor and upon conviction shall be punished in accordance with YMC 5.01.010.

B.    The failure to accurately remit amounts due and payable within the time prescribed by YMC 5.49.040(B) shall be deemed both a criminal and civil violation of this chapter. Any fine imposed under this section shall be in addition to the taxes and penalties required by this chapter.

C.    Any officer, director or manager of any organization conducting any gambling activity taxed by this chapter shall be jointly and severally liable for the payment of any tax, penalty or fine imposed hereunder.

D.    The following statutes, codified in the Revised Code of Washington, and their successors are adopted by reference:

RCW 9.46.170 False or misleading entries or statements, refusal to produce records, as violations—Penalty.

RCW 9.46.190 Violations relating to fraud or deceit—Penalty.

RCW 9.46.195 Obstruction of public servant in administration or enforcement as violation—Penalty.

RCW 9.46.196 Cheating—Defined.

RCW 9.46.1962 Cheating in the second degree.

RCW 9.46.198 Working in gambling activity without license as violation—Penalty.

RCW 9.46.200 Action for money damages due to violations—Interest—Attorneys’ fees—Evidence for exoneration.

Subsections (1), (2), (3) and (5) only of RCW 9.46.230 Seizure and disposition of gambling devices—Owning, buying, selling, etc., gambling devices or records—Penalties.

RCW 9.46.240 Gambling information, transmitting or receiving as violation—Penalty. (Ord. 2022-001 § 6, 2022; Ord. 93-73 § 3, 1993: Ord. 2506 § 3, 1981; Ord. 1731 § 1 (part), 1974).

5.49.090 Effective date.

The provisions of this chapter shall become effective and remain in full force and effect on and after the first day of January, 1975. (Ord. 93-73 § 3, 1993: Ord. 1731 § 1 (part), 1974).

5.49.100 Severability.

If any provision or section of this chapter shall be held void or unconstitutional, all other parts, provisions and sections of this chapter not expressly so held to be void or unconstitutional shall continue in full force and effect. (Ord. 1731 § 1 (part), 1974).