Chapter 3.40
GAMBLING TAX
Sections:
3.40.030 Computation and payment period.
3.40.040 Administration and collection.
3.40.060 Payment failure—Penalties.
3.40.070 Filing of notice of intent to conduct activity required.
3.40.090 Overpayment and underpayment.
3.40.100 Failure to make return.
3.40.110 Tax additional to others.
3.40.120 Regulation promulgation authority.
3.40.130 Debts to city—Legal remedy.
3.40.010 Definitions.
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 as 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. 1361 § 1, 1976).
3.40.020 Imposed—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 amounts to be paid to the city of Centralia, Washington; except, however, 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 RCW 9.46.0209, which organization has no paid operating or management personnel and has gross receipts from bingo, or amusement games, or combination thereof, not exceeding five thousand dollars per year, less the amount awarded as cash or merchandise prizes. No tax shall be imposed on the first ten thousand dollars 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 RCW 9.46.0209:
A. Bingo, 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 the rate of five percent;
B. Raffles, 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 the rate of five percent;
C. Amusement games, 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 the rate of two percent;
D. Any punch boards or pull-tabs:
1. Charitable or nonprofit organizations, 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 the rate of zero percent,
2. Commercial stimulant operators, in the amount of five percent of the gross receipts directly from the operation of the punch boards or pull-tabs themselves;
E. Social card games, in the amount of:
|
Effective August 1, 2004, through December 31, 2005 |
3% of gross revenue |
|
Effective January 1, 2006, through December 31, 2006 |
5% of gross revenue |
|
Effective January 1, 2007, through December 31, 2007 |
7% of gross revenue |
|
Effective January 1, 2008 |
10% of gross revenue |
(Ord. 2127 § 1, 2004: Ord. 2040 § 1, 1999: Ord. 2008 § 1, 1998: Ord. 1848 § 22, 1995: Ord. 1729-A § 1, 1991; Ord. 1389 § 1, 1977: Ord. 1361 § 2, 1976).
3.40.030 Computation and payment period.
Each of the various taxes imposed by the ordinance codified in 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 Centralia 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. (Ord. 1361 § 3, 1976).
3.40.040 Administration and collection.
A. Administration and collection of the various taxes imposed by the ordinance codified in 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 the city clerk. 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 clerk’s office during regular business hours.
C. In addition to the return form, a copy of the taxpayer’s quarterly report to the Washington State Gambling Commission required by Chapter 230-08 WAC for the period in which the tax accrued, shall accompany remittance of the tax amount due. (Ord. 1361 § 4, 1976).
3.40.050 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 a copy of the quarterly report to the Washington State Gambling Commission shall be filed in the office of the city clerk after notation by the office upon the return of the amount actually received from the taxpayer. (Ord. 1361 § 5, 1976).
3.40.060 Payment failure—Penalties.
A. If full payment of any tax or fee due 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 fifteen days late, two percent of tax due;
2. Sixteen to thirty days late, five percent of tax due;
3. Thirty-one to sixty days late, ten percent of tax due; but in no event shall the penalty amount be less than five dollars. In addition to this penalty, the city clerk shall charge the taxpayer interest of one percent of all taxes and fees due for each thirty-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 sixty days following the day the tax amount initially became due shall be both a civil and a criminal violation of this section. (Ord. 1361 § 6, 1976).
3.40.070 Filing of notice of intent to conduct activity required.
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 a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the city clerk, together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than ten days prior to conducting or operating the taxable activity. No fee shall be charged for such filing which is not for the purpose or regulation of this activity but for the purposes of administration of this chapter only.
Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 1361 § 7, 1976).
3.40.080 Records required.
A. 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 Washington State Gambling Commission under Chapter 230-08 WAC, 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 city clerk or designees for the purpose of enforcing the provisions of this chapter.
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 city clerk may examine them conveniently, the taxpayer shall do one of the following:
1. Produce all of the required books, records, or items within this jurisdiction for such inspection within ten 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 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.
D. A taxpayer who fails, neglects, or refuses to produce such books and records either within or without this jurisdiction shall be subject to the civil and criminal penalties provided by this chapter, with the same constituting a separate and distinct criminal offense from other offenses described in this chapter. (Ord. 1361 § 8, 1976).
3.40.090 Overpayment and 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 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 ten calendar days of such mailing. (Ord. 1361 § 9, 1976).
3.40.100 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 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. 1361 § 10, 1976).
3.40.110 Tax additional to others.
The tax levied under this chapter shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of Centralia, Washington, except as otherwise expressly provided in this chapter. (Ord. 1361 § 11, 1976).
3.40.120 Regulation promulgation authority.
The city clerk shall have the power, if necessary, 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 shall be unlawful to violate or fail to comply with any such rule or regulation. (Ord. 1361 § 12, 1976).
3.40.130 Debts to city—Legal remedy.
Any tax due and unpaid under this chapter and all penalties or fees 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. 1361 § 13, 1976).
3.40.140 Recovery limitation.
The right of recovery by the city from the taxpayer for any tax provided under this chapter shall be limited to three calendar years from the date the tax became due. The right of recovery against the city because of overpayment of tax by any taxpayer shall be limited to three calendar years from the date such payment was made. (Ord. 1361 § 14, 1976).
3.40.150 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 thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed five hundred dollars, or by imprisonment in jail for a term not exceeding ninety days, 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. 1361 § 15, 1976).
3.40.160 Severability.
If any provision or section of this chapter is 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. 1361 § 16, 1976).