Chapter 5.44
GAMBLING TAX
Sections:
5.44.020 Persons subject to tax – Exceptions – Tax rates.
5.44.030 Computation and payment – Exceptions.
5.44.040 Administration and collection.
5.44.060 Failure to make timely payment of tax, penalty or interest.
5.44.070 Notice of intention to engage in activity to be filed.
5.44.090 Overpayment or underpayment.
5.44.100 Failure to make return.
5.44.110 Tax additional to others.
5.44.130 Taxes, penalties and fees constitute debt to city.
5.44.140 Limitation on right of recovery.
5.44.150 Violation – Penalties.
5.44.010 Definitions.
For the purpose of this chapter, the words and terms used shall have the same meaning as each has under Chapter 218, Laws of 1973, 1st Executive 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 herein clearly indicates that they be given some other meaning. [Ord. 951 § 7, 1983; Ord. 742 § 1, 1974.]
5.44.020 Persons subject to tax – Exceptions – Tax rates.
(1) There shall be levied a tax upon all persons, organizations and associations conducting or operating within this jurisdiction any of the activities listed in this section; except, that no person, organization or association exempted from taxation by Chapter 9.46 RCW shall be taxed. The tax to be levied shall be paid to the city in the following amounts:
|
|
Activity |
Tax Rate |
|
a. |
Conduct of any bingo game or raffle. |
Five percent of the gross revenue received less the amount awarded as cash or merchandise prizes. |
|
b. |
Operation of punch boards or pull-tabs as a commercial stimulant. |
Three percent of the gross receipts directly from the operation of the game. |
|
c. |
Operation of punch boards or pull-tabs by a bona fide charitable or nonprofit organization. |
Three percent of the gross receipts from the operation of the games, less the amount awarded as cash or merchandise prizes. |
|
d. |
Operation of a card room for social card games as a commercial stimulant upon any premises. |
Four percent of the gross revenue received from such card games. |
(2) Provided, however, that the following exemptions shall apply to the tax levied by subsection (1) of this section:
(a) No person, organization or association exempt by the provisions of Chapter 9.46 RCW shall be taxed.
(b) No tax shall be imposed on bingo games when such activities are conducted by a bona fide charitable or nonprofit organization which organization has no paid operating or management personnel and has gross receipts from bingo not exceeding $5,000 per year, less the amount awarded as cash or merchandise prizes.
(c) 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 a bona fide charitable or nonprofit organization.
(3) Pursuant to RCW 9.46.113, the city shall use the revenue collected from the taxes levied on the authorized gambling activities in this section primarily for the purpose of enforcement of the provisions of this chapter by the city police department. [Ord. 1574 § 1, 2016; Ord. 1431 § 1, 2008; Ord. 1369 § 1, 2004; Ord. 951 § 7, 1983; Ord. 831 § 1, 1978; Ord. 780 §§ 1, 2, 1976; Ord. 742 § 2, 1974.]
5.44.030 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 Clarkston, Washington, 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 subsection (2) of this section, 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 five 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 10 days thereafter, make a return and pay the tax due.
(2) 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 (3) 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 three consecutive calendar days, and the gross receipts therefrom do not exceed $500.00 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. First payment and returns under this subsection shall be made on or before January 31, 1976.
(3) Whenever it appears to the city clerk that the collection of taxes from any person, association or organization may be in jeopardy, the city clerk, after not less than 10 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 city clerk deems appropriate under the circumstances. [Ord. 742 § 3, 1974.]
5.44.040 Administration and collection.
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 complete 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.
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 office of the city clerk 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 Chapter 230-08 WAC for the period in which the tax accrued shall accompany remittance of the tax amount due. [Ord. 742 § 4, 1974.]
5.44.050 Method of payment.
Taxes payable hereunder 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 that office upon return of the amount actually received from the taxpayer. [Ord. 742 § 5, 1974.]
5.44.060 Failure to make timely payment of tax, penalty or interest.
If full payment of any tax or fee due under this chapter is not received on or before the date due, there shall be added to the amount of tax due a penalty as follows:
(1) One day to 30 days beyond the due date a five percent delinquency penalty shall be imposed in addition to the entire balance of the tax due;
(2) Thirty-one days to 60 days beyond the due date a 15 percent delinquency penalty shall be imposed in addition to the entire balance of the tax due;
(3) Sixty-one days beyond the due date a 25 percent delinquency penalty shall be imposed on the entire balance of the tax due.
But in no event shall the penalty amount be less than $20.00. In addition to this penalty, the city clerk may charge the taxpayer interest of one percent per month of all taxes, penalties and fees due.
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 criminal violation of this section and shall also authorize the city to take action to revoke or suspend any gambling license. [Ord. 1369 § 1, 2004.]
5.44.070 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 city clerk of the city of Clarkston 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 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 chapter only.
Failure to timely file shall not excuse any person, association or organization from any tax liability. [Ord. 742 § 7, 1974.]
5.44.080 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 hereunder 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.
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 his designees, for the purpose of enforcing the provisions of this chapter.
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 either:
(1) Produce all of the required books, records or items within this jurisdiction for such inspection within 10 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 the examination of the records.
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.
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. 742 § 8, 1974.]
5.44.090 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:
(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 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;
(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 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. 742 § 9, 1974.]
5.44.100 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; that amount shall thereupon become the tax and penalty and/or interest and shall become immediately due and payable. [Ord. 742 § 10, 1974.]
5.44.110 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 city of Clarkston, Washington, except as herein otherwise expressly provided. [Ord. 742 § 11, 1974.]
5.44.130 Taxes, penalties and fees constitute debt to city.
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. 742 § 13, 1974.]
5.44.140 Limitation on right of 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 the 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 three calendar years from the date such payment was made. [Ord. 742 § 14, 1974.]
5.44.150 Violation – Penalties.
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 $300.00 or by imprisonment in the city jail for a term not exceeding 90 days, or by both such fine and imprisonment.
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 is guilty of a violation of this chapter for each day during which the gambling activity is carried on. [Ord. 742 § 15, 1974.]