Chapter 5.20 GAMBLING

For the purposes of this chapter, the words and terms used shall have the same meaning as each has under Chapter 218, Laws of 1973, First Extraordinary Session and RCW Chapter 9.46, each as amended, and under the rules of the 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. 75-04 § 2, 1975)

5.20.030 Persons subject to tax – Tax rates.

There is levied upon all persons, associations and organizations conducting or operating within the jurisdiction of the city of Bainbridge Island any of the activities listed below a tax in the amounts set forth in Sections 5.20.040 through 5.20.090 to be paid to the city of Bainbridge Island. (Ord. 77-20, 1977: Ord. 75-04 § 3, 1975)

5.20.040 Bingo.

The tax on bingo shall be in the amount of gross receipts therefrom, less the amount of money paid in cash or for the merchandise actually awarded as prizes during the taxable period, multiplied by a rate as established by resolution of the city council. (Ord. 88-16 § 5, 1988: Ord. 77-20, 1977: Ord. 75-04 § 3(a), 1975)

5.20.050 Raffles.

The tax on the raffles shall be in the amount of the gross receipts therefrom, less the amount of money paid in cash, and paid for the merchandise, actually awarded as prizes during the taxable period, multiplied by the rate as established by the resolution of the city council. (Ord. 88-16 § 6, 1988: Ord. 77-20, 1977: Ord. 75-04 § 3(b), 1975)

5.20.060 Amusement games.

The tax on the amusement games shall be in the amount of the gross receipts therefrom, less the amount of money paid in cash, and paid for merchandise actually awarded as prizes during the taxable period, multiplied by a rate as established by the resolution of the city council. (Ord. 88-16 § 7, 1988: Ord. 77-20, 1977: Ord. 75-04 § 3(c), 1975)

5.20.070 Punchboards or pull tabs.

The tax on any punchboards or pull tabs shall be in the amount of a percent of the gross receipts as established by resolution of the city council, directly from the operation of the punchboards or pull tabs themselves. (Ord. 88-16 § 8, 1988: Ord. 77-20, 1977: Ord. 75-04 § 3(d), 1975)

5.20.080 Card playing.

The tax on card playing shall be in the amount of a percent of the gross receipts, as established by resolution of the city council, received as fees charged persons for the privilege of playing in card games. (Ord. 88-16 § 9, 1988: Ord. 77-20, 1977: Ord. 75-04 § 3(e), 1975)

5.20.090 Charitable or nonprofit organizations exempt.

No tax shall be imposed by this chapter on bingo, raffles or amusement games when such activities or any combination thereof are conducted by any bona fide charitable 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 $5000 per year, less the amount paid for as prizes. Taxation of punchboards and pull tabs shall not exceed five percent of gross receipts. (Ord. 77-20, 1977: Ord. 76-08 § 1, 1976: Ord. 75-04 § 3(f), 1975)

5.20.100 Notice of intention to engage in activity to be filed.

In order that the city of Bainbridge Island may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the city clerk 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 State Gambling Commission. The filing shall be made not later than 10 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 purposes of administration of this taxing chapter only. Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 75-04 § 8, 1975)

5.20.110 Tax – Quarterly computation and payment – Exceptions.

Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter year, shall be due and payable in quarterly installments, and remittance therefor, together with return forms, shall be made to the city of Bainbridge Island on or before the last day of the month next succeeding the quarterly period in which the tax accrued, that is, on January 31st, April 30th, July 31st and October 31st of each year; provided, that the following exceptions to this payment schedule shall be allowed, or required:

A. Except as provided in subsection B of this section, whenever any person, association or organization taxable under this chapter conducting or operating a taxable activity on a regular basis discontinues operation of that 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 such taxpayer shall, within 10 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, the duration of each such activity does not exceed 15 consecutive calendar days, and the gross receipts therefrom do not exceed $1500 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. Such returns shall be made upon a special form to be supplied by the city clerk.

C. Whenever it appears to the city clerk 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 shall deem appropriate under the circumstances. (Ord. 75-04 § 4, 1975)

5.20.120 Tax – Administration and collection.

A. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the city clerk. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by that officer. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.

B. The city clerk 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 clerk 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 State Gambling Commission, required by WAC 230-08 for the period in which the tax accrued, shall accompany remittance of the tax amount due. (Ord. 75-04 § 5, 1975)

5.20.130 Tax – Method of payment.

Taxes payable under this chapter shall be remitted to the city clerk 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 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 State Gambling Commission, shall be filed in the office of the city clerk after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 75-04 § 6, 1975)

5.20.140 Tax – Penalty for failure to make timely payment.

A. If the full payment of any tax or fee under this chapter is not received by the city clerk on or before the date due, there shall be added to the amount due a penalty fee as follows:

1. One to 10 days late, a percent of tax due as established by resolution of the city council;

2. Eleven to 20 days late, a percent of tax due as established by resolution of the city council;

3. Twenty-one to 31 days late, a percent of tax due as established by resolution of the city council:

4. Thirty-two to 60 days late, a percent of tax due as established by the city council; but in no event shall the penalty amount be less than an amount as established by resolution of the city council. In addition to this penalty, the city clerk may charge the taxpayer interest of a percent as established by resolution of the city council, per year of all taxes and fees due for each 30-day period, or portion thereof, that said amounts are past due.

B. Failure to make payment in full of all tax amounts, and penalties within 60 days following the day the tax amount initially became due, shall be both a civil and a criminal violation of this section. (Ord. 88-16 § 10, 1988: Ord. 75-04 § 7, 1975)

5.20.150 Tax – Overpayment or underpayment.

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 that within three years immediately preceding receipt by the city clerk of the application by the taxpayer for a refund, or an audit, or, in the absence of such an application, within the three years immediately preceding the commencement by the city clerk 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 of Bainbridge Island within such period of three 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 more than three years before the date of such 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 clerk 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 10 calendar days of such mailing. (Ord. 75-04 § 10, 1975)

5.20.160 Tax – 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 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 amount shall thereupon become the tax and penalty and/or interest and shall become immediately due and payable. (Ord. 75-04 § 11, 1975)

5.20.170 Tax – Additional to other fees or taxes.

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 of Bainbridge Island, except as otherwise expressly provided in this chapter. (Ord. 75-04 § 12, 1975)

5.20.180 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 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 State Gambling Commission under WAC 230-08 and the United States Internal Revenue Service respecting taxation shall be kept and maintained for the periods required by those agencies. (Ord. 75-04 § 9, 1975)

5.20.190 Records – Inspection and audit.

A. All books, records, and other items required to be kept and maintained under this section and Sections 5.20.180 and 5.20.200 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 or his designees for the purpose of enforcing the provisions of this taxing chapter.

B. Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this section and Sections 5.20.180 and 5.20.200 in this jurisdiction so that the city clerk 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 15 days following a request of the local official that he do so; or

2. Bear the actual cost of inspection by the city clerk 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 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. 75-04 § 9, 1975)

5.20.200 Records – Penalty for failure to produce for inspection.

A. A taxpayer who fails, neglects or refuses to produce such books and records either within or without this jurisdiction, in addition to being subject to other civil and criminal penalties provided by this chapter, shall be subject to a jeopardy fee or tax assessment by the city clerk.

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 clerk by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the city clerk 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. 75-04 § 9, 1975)

5.20.210 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 of Bainbridge Island, 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. 75-04 § 14, 1975)

5.20.220 Limitation on right to recovery.

The right of recovery by the city of Bainbridge Island from the taxpayer for any tax provided under this chapter shall be outlawed after the expiration of three calendar years from the date said tax became due. The right of recovery against the city of Bainbridge Island 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. 75-04 § 15, 1975)

5.20.230 City clerk to make rules.

The city clerk shall have the power, and it shall be his 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. 75-04 § 13, 1975)

5.20.240 Appeal.

In the event any person feels aggrieved by any decision or determination of the city clerk, said person shall have the right to appeal such determination to the city council by filing a notice of appeal within 10 days after such determination is made and the city council shall have the power to affirm, disaffirm or modify such administrative determination and any person feeling aggrieved by any determination of the city council shall have the right of appeal to the Superior Court of the county in accordance with the procedures established for extraordinary remedies. (Ord. 75-04 § 17, 1975)

5.20.250 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 city clerk pursuant hereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed $300.00, or by imprisonment in the city jail for a term not exceeding six months, or by both such fine and imprisonment.

B. 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 shall be guilty of a violation of this chapter for each day during which the gambling activity is carried on. (Ord. 75-04 § 16, 1975)