Chapter 5.06
THE REGULATION OF GAMBLING ACTIVITIES AND THE IMPOSITION OF GAMBLING TAXES
Sections:
5.06.010 Declaration of intent.
5.06.020 Certain activities authorized.
5.06.030 Payment of tax on gambling activities.
5.06.040 Tax to be paid quarterly.
5.06.050 Tax due date – Delinquency.
5.06.060 Administration and collection of taxes.
5.06.070 Tax additional to others.
5.06.100 Taxes, penalties and fees constitute debt to municipality.
5.06.110 Violation and penalties.
5.06.010 Declaration of intent.
A. 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 activity taxable under this chapter upon a form prescribed by the City Clerk-Treasurer, together with a copy of the license issued therefor by the Washington State Gambling Commission.
B. All persons, associations or organizations conducting gambling activities as of the effective date of the ordinance codified in this chapter shall file such declaration of intent not less than 30 days after the effective date hereof, and thereafter said filing shall not be made later than five days prior to conducting or operating the taxable activity. No fee shall be charged for such filing, which is not for the purpose of regulating gambling activity, but for the purpose of administering this taxing chapter. Failure to timely file shall not excuse any person, association or organization from any tax liability.
C. A bona fide charitable or nonprofit organization must file with the City Clerk-Treasurer a copy of the letter from the Internal Revenue Service, Department of the Treasury, noting exemption from federal income tax due to its status as a bona fide charitable or nonprofit organization, a copy of its Washington State gambling license, if such license is required, and any forms provided or prescribed by the City Clerk-Treasurer. (Ord. C-614 § 2, 2005)
5.06.020 Certain activities authorized.
The City Council authorizes bona fide charitable or nonprofit or other persons, associations or organizations as regulated by the Washington State Gambling Commission and licensed thereby, to conduct bingo games, raffles, amusement games, social card games, punchboards and pull tabs in accord with the provisions of Chapter 9.46 RCW and the rules and regulations adopted pursuant thereto; provided, bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the conduct of raffles are authorized to conduct raffles without obtaining a license to do so from the Washington State Gambling Commission when such raffles are held in accordance with all other requirements of the laws of the state, Chapter 9.46 RCW and other applicable laws, and the rules of the Washington State Gambling Commission. (Ord. C-614 § 3, 2005)
5.06.030 Payment of tax on gambling activities.
There is levied upon all persons, associations, and organizations, licensed by the Washington State Gaming Commission, conducting or operating within this jurisdiction any of the activities listed below, a tax in the following amounts to be paid to the City:
A. Tax to be applied to any punchboards or pull tabs on gross receipts received therefrom, less the amount awarded as cash or merchandise prizes;
B. Tax to be applied to any bingo games on gross receipts received therefrom, less the amount awarded as cash or merchandise prizes;
C. Tax to be applied to any card playing on the gross revenue for such games;
D. Tax to be applied to any amusement games on gross receipts received therefrom, less the amount awarded as prizes;
E. Applicable tax on total quarterly taxable gaming revenue as described in subsections (A) through (D) of this section will be computed at:
1. Zero percent on total quarterly taxable revenue from $0.00 to $12,499.99;
2. One percent on all taxable income if total quarterly revenue exceeds $12,500 but is less than $24,999.99;
3. One and three-quarters percent on all taxable revenue if total quarterly taxable revenue is $25,000 or more. (Ord. C-623 § 2, 2006)
5.06.040 Tax to be paid quarterly.
The tax levied hereunder shall be paid quarterly for the preceding three-month period, or a portion thereof, on or before the thirty-first day of January, the thirtieth day of April, the thirty-first day of July, and the thirty-first day of October, at the Office of the City Clerk-Treasurer, Airway Heights City Hall; provided, however, that those persons conducting activities subject to taxation under this chapter less frequently than once every 60 days shall pay the tax for each taxable activity at the Office of the City Clerk-Treasurer, Airway Heights City Hall, within 30 days following the date upon which the activity was conducted. (Ord. C-614 § 5, 2005)
5.06.050 Tax due date – Delinquency.
For each payment due, if such payment is not made by the due date thereof, there shall be added a penalty as follows:
A. If paid on or before the fifteenth day of the second month next succeeding the quarterly period in which the tax accrued, 10 percent with a minimum penalty of $10.00;
B. If paid prior to the thirtieth day of the second month next succeeding the quarterly period in which the tax accrued, 15 percent with a minimum penalty of $10.00;
C. Failure to make payment by the thirtieth day of the second month succeeding the quarterly period in which the tax accrued shall result in a penalty of 20 percent with a minimum penalty of $15.00. (Ord. C-614 § 6, 2005)
5.06.060 Administration and collection of taxes.
Administration and collection of the taxes imposed by this chapter shall be the responsibility of the City Clerk-Treasurer. On a semiannual basis, payment of the tax required hereunder shall be accompanied by a copy of the taxpayer’s quarterly report to the Washington State Gambling Commission required by Chapter 230-08 WAC for the prior six-month operating period. (Ord. C-614 § 7, 2005)
5.06.070 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. C-614 § 8, 2005)
5.06.080 Financial records.
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, which shall be made available to the City for inspection at reasonable times and circumstances. Any costs associated therewith shall be borne by the taxpayer. (Ord. C-614 § 9, 2005)
5.06.090 Definitions.
For the purposes of this chapter, the words and terms used shall have the same meaning as each has under Chapter 9.46 RCW, as now or hereafter amended, and under the rules of the Washington State Gambling Commission, WAC Title 230, unless otherwise specifically provided or the context in which they are used in this chapter clearly indicates that they be given some other meaning. (Ord. C-614 § 10, 2005)
5.06.100 Taxes, penalties and fees constitute debt to municipality.
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. C-614 § 11, 2005)
5.06.110 Violation and penalties.
Any person violating or failing to comply with any of the provisions of this chapter, upon conviction thereof, shall be punished by a fine in the sum not to exceed $500.00.
Any taxpayer who engaged in, or carries on, any gambling activity subject to a tax hereunder without having complied with the provisions of this chapter shall be guilty of a violation of this chapter for each day during which the gambling activity is carried on. (Ord. C-614 § 12, 2005)