Chapter 3.72
GAMBLING TAX
Sections:
3.72.020 PERSONS SUBJECT TO TAX - TAX RATES.
3.72.030 TAX TO BE COMPUTED AND PAID QUARTERLY - EXCEPTIONS.
3.72.040 ADMINISTRATION AND COLLECTION OF TAX.
3.72.060 PENALTY FOR LATE PAYMENT.
3.72.070 NOTICE OF INTENTION TO ENGAGE IN ACTIVITY TO BE FILED.
3.72.090 OVERPAYMENT OR UNDERPAYMENT OF TAX.
3.72.100 FAILURE TO MAKE RETURN.
3.72.110 TAX ADDITIONAL TO OTHERS.
3.72.130 TAXES, PENALTIES AND FEES CONSTITUTE DEBT TO MUNICIPALITY.
3.72.140 LIMITATION ON RIGHT TO RECOVERY.
3.72.150 EFFECTIVE DATE OF TAX.
3.72.160 VIOLATION - PENALTIES.
3.72.010 DEFINITIONS.
For the purposes of this chapter, the following definitions shall apply unless the context indicates otherwise:
"Director" means the Director of Community Development of the City or any officer, agent or employee of the City designated to act on the Director’s behalf; and
“Tax and Licensing Division” means the Tax and Licensing Division of the Department of Community Development.
In addition, 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 Chapter 9.46 RCW, each amended, and under the rules of the Washington State Gambling Commission, Chapter 230, WAC, unless otherwise specifically provided or the context in which they are used herein clearly indicates that they may be given some other meaning. (Ord. 5343 §4 (part), 2017: Ord. 3187 §1, 1974)
3.72.020 PERSONS SUBJECT TO TAX - TAX RATES.
There is levied upon all persons, associations, and organizations conducting or operating within this jurisdiction any of the activities listed below a tax in the following amount to be paid to the City:
(a) Bingo, in the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise which are actually awarded as prizes during the taxable period, multiplied by the rate of five (5) percent;
(b) Raffles, in the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise which are actually awarded as prizes during the taxable period, multiplied by the rate of five (5) percent. No tax shall be imposed on the first ten thousand dollars ($10,000) 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 Chapter 9.46 RCW;
(c) Amusement games, in the amount sufficient to pay the actual costs of enforcement of the provisions of this chapter, which shall not exceed the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise, which are actually awarded as prizes during the taxable period, multiplied by the rate of two (2) percent;
(d) Charitable organizations. No tax shall be imposed under the authority of 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 Chapter 9.46 RCW, which organization has not paid operating or management personnel and has gross income from bingo, raffles or amusement games, or any combination thereof, not exceeding five thousand dollars ($5,000) per year less the amount paid as prizes;
(e) Fishing derbies, in the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise which are actually awarded for prizes during the taxable period, multiplied by the rate of ten (10) percent;
(f) Punchboards or pull-tabs.
(1) Any organization qualifying as a bona fide charitable or nonprofit organization pursuant to the provisions of Chapter 9.46 RCW and any person, association or organization who desires to utilize punchboards or pull-tabs as a commercial stimulant pursuant to Chapter 9.46 RCW shall make such intention known to the Director;
(2) Any organization pursuant to the provisions of Chapter 9.46 RCW and any person, association or organization who desires to utilize punchboards or pull-tabs as a commercial stimulant pursuant to Chapter 9.46 RCW shall remit to the City of Bremerton and there is hereby levied a tax computed at the rate of three (3) percent based upon the gross income received in the conduct of such activity, computed by multiplying the number of chances played on said punchboard or pull-tab times the price or value of each individual chance for play;
(3) Any organization qualifying as a bona fide charitable or nonprofit organization pursuant to the provisions of Chapter 9.46 RCW, who desires to utilize punchboards or pull-tabs pursuant to Chapter 9.46 RCW, shall remit to the City of Bremerton and there is hereby levied a tax computed at the rate of ten (10) percent based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes. Gross income received in the conduct of such activity is computed by multiplying the number of chances played on said punchboard or pull-tab times the price or value of each individual chance or play. Cash or merchandise awarded is computed by the amount of cash paid or cost of merchandise awarded;
(g) Social card games.
(1) Social card games (player funded), in the amount of ten (10) percent of the gross receipts received as fees charged persons for the privilege of playing in card games;
(2) Social card games (house banked) in the amount of two (2) percent of the gross receipts received by the house from such social card games;
(h) Fund-raising events, as defined by RCW 9.46.0233, in the amount of ten (10) percent of the net receipts derived from the fund-raising event. For the purpose of this section, "net receipts" means all money received by an organization during a given period of time, less the amount of money paid out as cash prizes during the same period of time. No additional expenditures which arise from the conducting of the fund-raising event shall be deducted for purposes of reducing the gross receipts to arrive at the net receipt. (Ord. 5343 §4 (part), 2017: Ord. 5238 §1, 2013: Ord. 5116 §1, Amended, 07/07/2010: Ord. 4764, Amended, 07/06/2001; Ord. 3924 §1, 1984; Ord. 3187 §2, 1974)
3.72.030 TAX TO BE COMPUTED AND PAID QUARTERLY - 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, 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:
(1) Except as provided in (2) below, 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 three consecutive weeks, 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.
(2) Whenever it appears to the Director that the collection of taxes from any person, association or organization may be in jeopardy, the Director, after not less than thirty (30) 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 the Director shall deem appropriate under the circumstances.
(3) There shall be allowed as a deduction for the various taxes imposed by this chapter an amount equal to the amount of bad debts suffered by any such person, association or organization engaged in such activity as a result of their being unable to collect gambling debts. Such deduction shall be allowed to be computed and taken on the tax return for the fourth quarter of each calendar year. Such deduction shall not be allowed unless the person, association or organization engaging in such activities shall first cause to be prepared and filed with said fourth quarter tax return an affidavit, in form satisfactory to the Director, setting forth the amount of bad debts suffered by such person, association or organization. (Ord. 5343 §4 (part), 2017: Ord. 3377 §1, 1977; Ord. 3187 §3 1974)
3.72.040 ADMINISTRATION AND COLLECTION OF TAX.
Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the Tax and License Division. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the Director. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate, and complete.
The Director 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 Director shall make forms available to the public in reasonable numbers in the office of the Director during regular business hours.
In addition to the return form, a copy of the taxpayer’s quarterly report to the Washington 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. 5343 §4 (part), 2017: Ord. 3187 §4, 1974)
3.72.050 METHOD OF PAYMENT.
Taxes payable hereunder shall be remitted to the Director 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 Director 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 Director after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 5343 §4 (part), 2017: Ord. 3187 §5, 1974)
3.72.060 PENALTY FOR LATE PAYMENT.
If full payment of any tax due under this chapter is not received by the Tax and Licensing Division on or before the date due, there shall be added to the amount due a penalty fee pursuant to BMC 3.86.110. (Ord. 5343 §4 (part), 2017: Ord. 3894 §1, 1984; Ord. 3187 §6, 1974)
3.72.070 NOTICE OF INTENTION TO ENGAGE IN ACTIVITY TO BE FILED.
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 Director a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the Director, together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than ten (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 ordinance only.
Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 5343 §4 (part), 2017: Ord. 3187 §7, 1974)
3.72.080 RECORDS REQUIRED.
(a) Each person, association, or organization engaging in an activity 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. Such records shall be kept and maintained for a period of not less than three (3) years. In addition, all information and items required by the Washington 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.
(b) 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 Director or his designees, for the purpose of enforcing the provisions of this taxing ordinance.
(c) 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 Director 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 seven (7) days following a request of the local official that he do so; or
(2) Bear the actual cost of inspection by the Director 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 Director 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.
(d) 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 Director.
(e) This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the Director by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the Director 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. 5343 §4 (part), 2017: Ord. 3187 §8, 1974)
3.72.090 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 Director that within three (3) years immediately preceding receipt by the Director 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 Director of such examination:
(1) 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 Director more than three (3) years before the date of such application or examination;
(2) 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 Director 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. 5343 §4 (part), 2017: Ord. 3187 §9, 1974)
3.72.100 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 Director 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. 5343 §4 (part), 2017: Ord. 3187 §10, 1974)
3.72.110 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 Bremerton, except as herein otherwise expressly provided. (Ord. 5343 §4 (part), 2017: Ord. 3187 §11, 1974)
3.72.120 RULEMAKING.
The Director shall have the authority 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 hereof, and it shall be unlawful to violate or fail to comply with any such rule or regulation. (Ord. 5343 §4 (part), 2017: Ord. 3187 §12, 1974)
3.72.130 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. 5343 §4 (part), 2017: Ord. 3187 §13, 1974)
3.72.140 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 five (5) 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 five (5) calendar years from the date such payment was made. (Ord. 5343 §4 (part), 2017: Ord. 3670 §3, 1981; Ord. 3187 §14, 1974)
3.72.150 EFFECTIVE DATE OF TAX.
This chapter shall provide for the gambling taxes mentioned herein, to be retroactive to January 1, 1975. (Ord. 5343 §4 (part), 2017: Ord. 3187 §17, 1974)
3.72.160 VIOLATION - PENALTIES.
Anyone who violates or fails to comply with any of the provisions of this chapter shall, upon conviction, be guilty of a civil infraction subject to the provisions of Chapter 1.12 BMC, and each day any person shall continue to violate or fail to comply with the provisions of this chapter shall be deemed and considered a separate offense. (Ord. 5343 §4 (part), 2017: Ord. 4733, Reaffirmed; 11/30/2002; Ord. 4680, Amended, 12/17/1999; Ord. 3894 §2, 1984; Ord. 3625 §28, 1980; Ord. 3187 §15, 1974)