Chapter 5.16
GAMBLING ACTIVITIES TAX
Sections:
5.16.010 State definitions incorporated.
5.16.020 Persons subject to tax – Rates.
5.16.025 Use of gambling activity tax revenue.
5.16.030 Quarterly computation – Payment – Exceptions.
5.16.040 Administration and collection – Report to state.
5.16.060 Payment – Failure – Penalty.
5.16.070 Declaration of intention to engage in activity to be filed.
5.16.090 Overpayment or underpayment.
5.16.100 Failure to make return.
5.16.110 Tax additional to others.
5.16.120 Taxes, penalties and fees as debts – Taxes as lien.
5.16.140 Violation – Penalties.
5.16.010 State definitions incorporated.
For the purposes of this chapter the words and terms used herein shall have the same meaning given to each pursuant to Chapter 9.46 RCW, as the same may exist and from time to time be amended; and as set forth in the rules of the Washington State Gambling Commission, WAC Title 230, as the same may exist or hereafter be amended, unless otherwise specifically provided herein. (Ord. 2019-05 § 1, 2019; Ord. 89-11 § 1, 1989).
5.16.015 Social card games.
Social card games are not prohibited within the town of Eatonville and bona fide charitable or nonprofit organizations may operate or conduct social card games if social card games have been duly licensed by the Washington State Gambling Commission and if they are otherwise operator-conducted and in compliance with this code. (Ord. 2019-05 § 2, 2019; Ord. 2004-14 § 1, 2004; Ord. 99-12 §§ 1, 2, 3, 1999).
5.16.020 Persons subject to tax – Rates.
There is levied upon all persons, associations and organizations conducting or operating within the town any of the activities listed below, a tax in the following amounts to be paid to the town:
A. Any punch boards or pull tabs in the amount of 10 percent of gross receipts from the operation of the games, less the amount awarded as cash or merchandise prizes to customers;
B. Social card games in the amount of 20 percent of the gross revenue from such card games;
C. Bingo in the amount of five percent of gross receipts, less the amount awarded as cash or merchandise prizes; provided, however, no tax shall be imposed when conducted by any 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;
D. Raffles in the amount of five percent of the gross receipts, less the amount awarded as cash or merchandise prizes; and provided further, that no tax shall be imposed on the first $10,000 of gross receipts less the amount awarded as cash or merchandise prizes conducted by any bona fide charitable organization or nonprofit organization; and
E. Amusement games in the amount of two percent of the gross receipts, less the amounts awarded as prizes or an amount sufficient to pay the actual costs of enforcement of the provisions of this chapter by town law enforcement, whichever is less. (Ord. 2019-05 § 3, 2019; Ord. 2011-16 § 1, 2011; Ord. 97-08 § 1, 1997; Ord. 89-11 § 2, 1989).
5.16.025 Use of gambling activity tax revenue.
Gambling activity tax revenue paid to the town shall be used primarily for the purpose of public safety. (Ord. 2019-05 § 4, 2019).
5.16.030 Quarterly computation – 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 town, 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:
A. Whenever any person, association or organization taxable hereunder conducting or operating a taxable activity for a period of more than two consecutive weeks, quits business, sells out, 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 town clerk-treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the town clerk-treasurer, 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 town clerk-treasurer shall deem appropriate under the circumstances. (Ord. 89-11 § 3, 1989).
5.16.040 Administration and collection – Report to state.
A. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the town clerk-treasurer. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the town clerk-treasurer. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.
B. The town clerk-treasurer 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 tax due. The town clerk-treasurer shall make forms available to the public in reasonable numbers in the town clerk-treasurer’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 WAC Title 230 for the period in which the tax accrued, shall accompany remittance of the tax amount due. (Ord. 2019-05 § 5, 2019; Ord. 89-11 § 4, 1989).
5.16.050 Payment – Method.
Taxes payable hereunder shall be remitted to the town clerk-treasurer 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 town clerk-treasurer 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 town clerk-treasurer after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 89-11 § 5, 1989).
5.16.060 Payment – Failure – Penalty.
If full payment of any tax or fee due under this chapter is not received by the town clerk-treasurer on or before the date due, there shall be added to the amount due a penalty fee as follows:
A. One to 10 days late, 10 percent of tax due;
B. Eleven to 60 days late, 30 percent of tax due; but in no event shall the penalty amount be less than 10 percent. In addition to the penalty, the town clerk-treasurer may charge the taxpayer interest of nine percent of all taxes and fees due for each 30-day period, or portion thereof, that said amounts are past 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 a criminal violation of this section. (Ord. 89-11 § 6, 1989).
5.16.070 Declaration of intention to engage in activity to be filed.
In order that the town may identify those persons who are subject to taxation under this chapter, each person, association or organization, including charitable and nonprofit organizations, shall file with the town clerk-treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the town clerk-treasurer 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. 89-11 § 7, 1989).
5.16.080 Records.
Each person, association or organization engaging in an activity taxable under this chapter shall maintain records respecting that activity which truly, completely and accurately discloses 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 WAC Title 230, 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 town clerk-treasurer or his designees, for the purpose of enforcing the provisions of the taxing ordinance codified herein.
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 town clerk-treasurer may examine them conveniently, the taxpayer shall either:
A. 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
B. Bear the actual cost of inspection by the town clerk-treasurer 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 town clerk-treasurer 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.
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 town clerk-treasurer.
This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the town clerk-treasurer by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the town clerk-treasurer 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. 2019-05 § 6, 2019; Ord. 89-11 § 8, 1989).
5.16.090 Overpayment or underpayment.
If, upon application by a taxpayer for a refund or for an audit of his records, upon any examination of the returns or records of any tax payer it is determined by the town clerk-treasurer that within three years immediately preceding receipt by the town clerk-treasurer of the application of 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 town clerk-treasurer 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 the town within such period of three years shall be credited to the taxpayer’s account or shall be allowed with respect to the town clerk-treasurer 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 town clerk-treasurer shall mail a statement to the taxpayer showing the balance due, including 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. 89-11 § 9, 1989).
5.16.100 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 town clerk-treasurer 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. 89-11 § 10, 1989).
5.16.110 Tax additional to others.
The tax herein levied shall be additional to any license fee or tax imposed or levied under the law or any other ordinance of the town except as herein otherwise expressly provided. (Ord. 89-11 § 11, 1989).
5.16.120 Taxes, penalties and fees as debts – Taxes as lien.
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city and may be collected by court proceedings the same as any other debt. Taxes imposed under this chapter become a lien upon personal and real property used in the gambling activity in the same manner as provided for under RCW 84.60.010. The lien shall attach on the date the tax becomes due and shall relate back and have priority against real and personal property to the same extent as ad valorem taxes. (Ord. 2019-05 § 7, 2019; Ord. 89-11 § 12, 1989).
5.16.130 Limitation on right to recovery.
Repealed by Ord. 2019-05. (Ord. 89-11 § 13, 1989).
5.16.140 Violation – Penalties.
Any person violating or failing to comply with any of the provisions of this chapter is guilty of a misdemeanor. (Ord. 2019-05 § 9, 2019; Ord. 89-11 § 14, 1989).