Chapter 5.08
GAMBLING TAX1
Sections:
5.08.020 Person subject to tax – Tax rates.
5.08.030 Tax to be computed and paid quarterly – Exceptions.
5.08.040 Administration and collection of taxes.
5.08.060 Failure to make timely payment of tax.
5.08.070 Notice of intention to engage in activity to be filed.
5.08.080 Failure to make return.
5.08.090 Finance manager to make rules.
5.08.110 Taxes and penalties constitute debt to municipality.
5.08.120 Limitation on right to recovery.
5.08.130 Violation – Penalties.
5.08.010 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 and regulations of the Washington State Gambling Commission, WAC Title 230, unless otherwise specifically provided or the context in which they are used herein clearly indicates that they be given some other meaning. [Ord. 717B, 2002; Ord. 702B, 2001.]
5.08.020 Person subject to tax – Tax rates.
Except as hereinafter provided in CMC 5.08.030(B), there is hereby levied upon all persons, associations, and organizations conducting or operating within the city any of the activities listed below a tax in the following amounts to be paid to the city:
A. Taxation of bingo and raffles in the amount of five percent of the gross receipts from a bingo game or raffle less the amount awarded as cash or merchandise prizes.
B. Taxation of amusement games in the amount of two percent of the gross receipts from the amusement game less the amount awarded as prizes.
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.
D. No tax shall be imposed on raffles conducted by any bona fide charitable or nonprofit organization as defined in this chapter.
E. Taxation of punch boards and pull tabs in the amount of five percent based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes.
F. Taxation of social card games in the amount of five percent of the gross revenue from such games. [Ord. 717B, 2002; Ord. 702B, 2001.]
5.08.030 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, the following exceptions to this payment schedule shall be allowed or required:
A. 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 two consecutive months, 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 10 days thereafter, make a return and pay the tax due.
B. Whenever it appears to the finance manager that the collection of taxes from any person, association or organization may be in jeopardy, the finance manager, after not less than 10 days’ notice to the taxpayer, is authorized to require the taxpayer to remit taxes and returns at such shorter intervals than quarterly as the finance manager shall deem appropriate under the circumstances. [Ord. 831B, 2007; Ord. 717B, 2002; Ord. 702B, 2001.]
5.08.040 Administration and collection of taxes.
A. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the finance manager. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the finance manager. The taxpayer shall be required to swear and affirm that information given in the return is true, accurate, and complete.
B. The finance manager 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 finance manager shall make forms available to the public in reasonable numbers in the office of the finance manager 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. 831B, 2007; Ord. 717B, 2002; Ord. 702B, 2001.]
5.08.050 Method of payment.
Taxes payable hereunder shall be remitted to the finance manager on or before the time required, by bank draft, certified check, cashier’s check, personal check, money order, or 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 finance manager 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 finance manager after notation by that office upon the return of the amount actually received from the taxpayer. [Ord. 831B, 2007; Ord. 717B, 2002; Ord. 702B, 2001.]
5.08.060 Failure to make timely payment of tax.
A. If full payment of any tax due under this chapter is not received by the finance manager on or before the date due, there shall be added to the amount due a penalty to accrue at the rate of one percent per month to be computed on the unpaid balance of the tax due, but in no event shall said penalty be less than $5.00.
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 a civil violation of this section. [Ord. 831B, 2007; Ord. 717B, 2002; Ord. 702B, 2001.]
5.08.070 Notice of intention to engage in activity to be filed.
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 finance manager a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the finance manager, together with a copy of the license issued therefor by the Washington State Gambling Commission. 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 regulation of this activity, but for the purpose of administration of this taxing chapter only.
B. Failure to timely file shall not excuse any person, association, or organization from any tax liability. [Ord. 831B, 2007; Ord. 717B, 2002; Ord. 702B, 2001.]
5.08.080 Failure to make return.
If any taxpayer fails, neglects, or refuses to make and file his/her return as and when required under this chapter, the finance manager is authorized to determine the amount of tax payable, together with any penalty 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 shall become immediately due and payable. [Ord. 831B, 2007; Ord. 717B, 2002; Ord. 702B, 2001.]
5.08.090 Finance manager to make rules.
The finance manager shall have the power, and it shall be his/her duty, from time to time, to adopt, publish, and enforce rules and regulations not inconsistent with this chapter or other 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. 831B, 2007; Ord. 717B, 2002; Ord. 702B, 2001.]
5.08.100 Records required.
A. Each person, association, or organization engaging in any gambling 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 during each base tax period. Such records shall be kept and maintained for a period of not less than three years.
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 of the finance manager, for the purpose of enforcing the provisions of this taxing chapter. [Ord. 831B, 2007; Ord. 717B, 2002; Ord. 702B, 2001.]
5.08.110 Taxes and penalties constitute debt to municipality.
Any tax due and unpaid under this chapter and all penalties shall constitute a debt to the city, 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. 717B, 2002; Ord. 702B, 2001.]
5.08.120 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 three calendar years from the date said tax became due. The right to recovery against the city 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. 717B, 2002; Ord. 702B, 2001.]
5.08.130 Violation – Penalties.
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 finance manager pursuant hereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed $500.00.
B. Any taxpayer who engages 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, and shall be subject to loss of the business license.
C. A business license may be revoked by the city in the event the licensee shall fail to pay any gambling taxes due or fail to comply with any of the terms and provisions of this chapter. [Ord. 831B, 2007; Ord. 717B, 2002; Ord. 702B, 2001.]
Code reviser’s note: Ordinance 754-B provides for a moratorium on the imposition of the gambling tax, providing as follows:
Section 1. The city hereby establishes a moratorium on the imposition of any and all gambling taxes as provided for in Chapter 5.08 of the Chehalis Municipal Code. From and after the effective date of this ordinance, no taxes shall be imposed or collected under the authority of Chapter 5.08 of the Chehalis Municipal Code.
Section 2. The effective date of this ordinance shall be the 1st day of July, 2003, for imposition of taxes and the 31st day of October, 2003, for the collection of taxes.