Chapter 5.12
GAMBLING1
Sections:
5.12.010 Gambling activities authorized.
5.12.030 Tax levied – Bingo, raffles and amusement games – Rate.
5.12.040 Tax levied – Punchboards and pull tab devices – Rate.
5.12.045 Tax levied – Cardroom activities – Rate.
5.12.050 Tax administration and collection.
5.12.060 Tax payment procedure.
5.12.070 Taxpayer record keeping – Inspection authorized.
5.12.080 Clerk-treasurer inspection and subpoena powers.
5.12.090 Filing extensions – Delinquency penalties.
5.12.100 Overpayment or underpayment procedure.
5.12.110 Failure to make return – Clerk-treasurer authority.
5.12.120 Prohibited acts designated.
5.12.130 Tax a debt – Recovery – Time limit.
5.12.010 Gambling activities authorized.
Those gambling activities authorized and licensed under Chapter 9.46 RCW, as it now exists or is hereafter amended, and which are not prohibited by the board of commissioners of the county, are authorized in the city. [Ord. 405 § 1, 1974].
5.12.020 Definitions.
The following definitions are adopted by and for the purpose of administering this chapter and prosecuting offenders:
A. 1. “Amusement game” means a game played for entertainment in which:
a. The contestant actively participates;
b. The outcome depends in a material degree upon the skill of the contestant;
c. Only merchandise prizes are awarded;
d. The outcome is not in the control of the operator;
e. The wagers are placed, the winners are determined, and a distribution or prizes or property is made in the presence of all persons placing wagers at such game; and
f. Said game is conducted or operated by any agricultural fair, person, association, or organization in such a manner and at such locations as may be authorized by rules and regulations adopted by the Washington State Gambling Commission.
2. Cakewalks, as commonly known, and fish ponds, as commonly known, shall be treated as amusement games for all purposes under this chapter.
B. “Bingo” means a game in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random and in which no cards are sold except at the time and place of said game, when said game is conducted by a bona fide charitable or nonprofit organization which does not conduct or allow its premises to be used for conducting bingo on more than three occasions per week and which does not conduct bingo in any location which is used for conducting bingo on more than three occasions per week, or, if any agricultural fair authorized under Chapters 15.76 and 35.37 RCW, which does not conduct bingo on more than 12 consecutive days in any calendar year, and, except in the case of an agricultural fair as authorized under Chapters 15.76 and 36.37 RCW, in which no person other than a bona fide member or an employee of said organization takes any part in the management or operation of said game and no person who takes any part in the management or operation of said game takes any part in the management or operation of any game conducted by any other organization or any other branch of the same organization, unless approved by the Washington State Gambling Commission, and no part of the proceeds thereof inure to the benefit of any person other than the organization conducting said game.
C. 1. “Bona fide charitable or nonprofit organization” means:
a. Any organization duly existing under the provisions of Chapter 24.12, 24.20, or 24.28 RCW, any agricultural fair authorized under the provisions of Chapter 15.76 or 36.37 RCW, or any nonprofit corporation duly existing under the provisions of Chapter 24.03 RCW for charitable, benevolent, eleemosynary, educational, civic, patriotic, political, social, fraternal, athletic or agricultural purposes only, or any nonprofit organization, whether incorporated or otherwise, when found by the Washington State Gambling Commission to be organized and operating for one or more of the aforesaid purposes only, all of which in the opinion of the Commission have been organized and are operated primarily for purposes other than the operation of gambling activities authorized by the state; or
b. Any corporation which has been incorporated under USC Title 36 and whose principal purposes are to furnish volunteer aid to members of the armed forces of the United States and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other national calamities and to devise and carry on measures for preventing the same. The fact that contributions to an organization do not qualify for charitable contribution deduction purposes or that the organization is not otherwise exempt from payment of federal income taxes pursuant to the Internal Revenue Code of 1954, as amended, shall constitute prima facie evidence that the organization is not a bona fide charitable or nonprofit organization for the purposes of this chapter.
2. Any person, association or organization which pays its employees, including members, compensation other than is reasonable therefor under the local prevailing wage scale shall be deemed paying compensation based in part or whole upon receipts relating to gambling activities authorized under the state and shall not be a bona fide charitable or nonprofit organization for the purposes of this chapter.
D. “Punchboards” and “pull tabs” shall be given their usual and ordinary meaning as of July 16, 1973, except that such definition may be revised by the Commission pursuant to this chapter.
E. “Raffle” means a game in which tickets bearing an individual number are sold for not more than $1.00 each and in which a prize or prizes are awarded on the basis of a drawing from said tickets by the person or persons conducting the game, when said game is conducted by a bona fide charitable or nonprofit organization, no person other than a bona fide member of said organization takes any part in the management or operation of said game, and no part of the proceeds thereof inure to the benefit of any person other than the organization conducting said game. [Ord. 487 § 1, 1979; Ord. 405 § 2, 1974].
5.12.030 Tax levied – Bingo, raffles and amusement games – Rate.
A. There is levied a tax upon the gross revenue, less prizes, of bingo, raffle and amusement games which shall be imposed upon and collected from those commercial stimulant operators and bona fide charitable or nonprofit organizations as defined in CRMC 5.12.020 and pursuant to RCW 9.46.110(b) and 9.46.110(3)(a), as amended.
B. The rate of tax imposed by subsection (A) of this section assessed to commercial stimulant operators shall be five percent of gross receipts, less prizes of bingo and raffle games, and two percent of gross receipts, less prizes, for amusement games.
C. No tax shall be imposed under the authority of this chapter on bingo or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in this chapter, which organization has no paid operating or management personnel and has gross receipts from bingo or amusement games, or a combination thereof, not exceeding $5,000 per year, less the amount awarded as cash or merchandise prizes.
D. No tax shall be imposed on the first $10,000 of 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 this chapter. [Ord. 99-22, 1999; Ord. 97-12, 1997; Ord. 89-23, 1989; Ord. 405 § 3, 1974].
5.12.040 Tax levied – Punchboards and pull tab devices – Rate.
A. There is levied a tax upon the revenue of any punchboard or pull tab device operated by commercial stimulant operators and bona fide charitable or nonprofit organizations as defined in CRMC 5.12.020 and pursuant to RCW 9.46.110(3)(e), as amended.
B. The rate of tax imposed by subsection (A) of this section, for charitable or nonprofit organizations, shall be 10 percent of gross receipts, less the amount awarded as cash or merchandise prizes.
C. The rate of tax imposed by subsection (A) of this section, for commercial stimulant operators, shall be three percent of gross receipts for the first $25,000 of gross. Any amount exceeding $25,000 of gross receipts will be taxed at four percent of gross. [Ord. 2014-03, 2014; Ord. 99-22, 1999; Ord. 97-12, 1997; Ord. 405 § 4, 1974].
5.12.045 Tax levied – Cardroom activities – Rate.
A. There is levied a tax upon the gross receipts of all cardroom (social card game) activity authorized by RCW 9.46.110(f).
B. The rate of tax imposed by subsection (A) of this section shall be 20 percent of gross revenue received by the operation of the cardroom/social card game establishment. [Ord. 99-22, 1999; Ord. 97-12, 1997; Ord. 86-3 § 1, 1986].
5.12.050 Tax administration and collection.
A. The administration and collection of the tax imposed by this chapter shall be by the city clerk-treasurer and pursuant to the rules and regulations promulgated by the Washington State Gambling Commission and this chapter.
B. The clerk-treasurer shall have the authority to adopt, publish, and enforce rules and regulations for the administration of this chapter which shall not be inconsistent with this chapter or law. The clerk-treasurer shall have the further authority to prescribe and issue appropriate forms for determination and declaration of the amount of tax to be paid under this chapter. [Ord. 405 § 5, 1974].
5.12.060 Tax payment procedure.
The tax imposed by this chapter shall be due and payable in monthly installments, and remittances therefor shall be made on or before the fifteenth day of the month next succeeding the month in which the tax occurred. The remittance shall be made by way of cash, certified check, cashier’s check or money order, and shall be accompanied by a return on a form provided and prescribed by the clerk-treasurer. The taxpayer shall swear or affirm that the information given in the tax return is full and true and that the taxpayer knows the same to be so. [Ord. 405 § 6, 1974].
5.12.070 Taxpayer record keeping – Inspection authorized.
A. Any bona fide charitable or nonprofit organization, person, association or organization liable for the payment of any tax imposed by this chapter shall keep and maintain for a period of two years such books and records as will accurately reflect the gross revenue received from bingo, raffles, or amusement games, or the amount of gross revenue of any punchboard or pull tab device, whichever activity is taxable by this chapter.
B. All books and records required to be kept or maintained under this chapter shall be subject to inspection and audit at any reasonable time, with or without notice, upon demand by the clerk-treasurer, the city attorney, chief of police, or their designees, for the purpose of determining compliance or noncompliance with the provisions of this chapter and any rules and regulations adopted pursuant thereto. [Ord. 405 § 7, 1974].
5.12.080 Clerk-treasurer inspection and subpoena powers.
If any taxpayer fails to make his return, or if the clerk-treasurer is dissatisfied as to the correctness of the statement made in the return of any taxpayer, he or his authorized agent may enter the premises of such taxpayer at any reasonable time for the purpose of inspecting his books or records of account to ascertain the amount of tax or to determine the correctness of such statement, as the case may be, and may examine any person under oath administered by said officers or his agent, touching the matters inquired into; or said officer or his authorized agent may fix a time and place for an investigation of the correctness of the return and may issue a subpoena to the taxpayer or any other person, to attend upon such investigation and there testify under oath administered by said officer or his agent in regard to the matters inquired into, and may by subpoena require him or any person to bring with him such books, records or papers as may be necessary. [Ord. 405 § 8, 1974].
5.12.090 Filing extensions – Delinquency penalties.
The clerk-treasurer for good cause shown may extend the time for making and filing any return as required under this chapter and may grant such reasonable additional time to file such return as he may deem proper; provided, that any extension in excess of 30 days shall be conditioned upon the payment of the interest of one-half of one percent for each 30 days or portion thereof on the amount of tax from the day upon which said tax becomes due. If the tax return and/or payment are not received within 15 days of the due date, a penalty must be included as follows:
A. If 16 to 45 days delinquent, 10 percent of the tax with a minimum penalty of $1.00;
B. If 46 to 75 days delinquent, 15 percent of the tax with a minimum penalty of $2.00;
C. If 76 or more days delinquent, 20 percent of the tax with a minimum penalty of $3.00. [Ord. 405 § 9, 1974].
5.12.100 Overpayment or underpayment procedure.
If the clerk-treasurer, upon investigation or upon checking returns, finds that the tax paid on any return is more than required, he shall return the amount overpaid by a warrant drawn on the general fund. If the clerk-treasurer finds that the tax paid is less than required, he shall mail a statement to the taxpayer showing the balance due, who shall within 10 days pay the amount shown thereon. [Ord. 405 § 10, 1974].
5.12.110 Failure to make return – Clerk-treasurer authority.
If any taxpayer fails, neglects or refuses to make his return as and when required in this chapter, the clerk-treasurer is authorized to determine the amount of the tax payable and by the mail to notify such taxpayer of the amount so determined. The amount so determined shall thereupon become the tax due and be immediately payable. [Ord. 405 § 11, 1974].
5.12.120 Prohibited acts designated.
It is unlawful for any person liable for the tax imposed by this chapter to fail or refuse to make the returns as and when required or to pay the tax when due, or for any person to make any false or fraudulent return, or any false statement or representation in, or in connection with, any such return, or to aid or abet another in any attempt to evade payment of the tax or any part thereof, or for any person to fail to appear and/or testify in response to a subpoena issued pursuant to this chapter or to testify falsely upon any investigation as to the correctness of a return or upon the hearing of any appeal, or in any manner to hinder or delay the city or any of its officers in carrying out the provisions of this chapter. [Ord. 405 § 12, 1974].
5.12.130 Tax a debt – Recovery – Time limit.
Any tax due and paid under this chapter and all penalties thereon shall constitute a debt to the city, a municipal corporation, and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. 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 years and the right of recovery against the city because of overpayment of tax by any taxpayer shall be outlawed after the expiration of three years, after which time the taxpayer shall have no right of recovery against the city. [Ord. 405 § 13, 1974].
5.12.140 Violation – Penalty.
Any person wilfully violating any of the terms of this chapter shall be punished by a maximum fine or by imprisonment as for other misdemeanors in the city, or by both such fine and imprisonment. [Ord. 405 § 14, 1974].
For statutory provisions on gambling, see Chapter 9.46 RCW.