Chapter 3.20
GAMBLING TAX
Sections:
3.20.020 Applicability and imposition of tax.
3.20.030 Declaration of intent required.
3.20.040 Computation and payment – Exceptions.
3.20.060 Nonpayment – Penalty.
3.20.070 Failure to make return.
3.20.080 Taxes, penalties and fees constitute a debt to the City.
3.20.100 Records – Inspection and audit.
3.20.110 Records not kept or maintained – Requirements.
3.20.120 Failure to produce records – Penalty fee or jeopardy assessment.
3.20.130 Rules and regulations.
3.20.140 Applicability to other license fees or taxes.
3.20.160 Administration and collection.
3.20.010 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 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 herein clearly indicates that they be given some other meaning. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 1, 1975)
3.20.020 Applicability and imposition of tax.
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 Ferndale, Washington:
A. Bingo. There shall be a tax imposed on bingo games in the amount of the gross receipts therefrom, less the amount of money paid as cash, and paid for merchandise, actually awarded as prizes during the taxable period, multiplied by a rate of 1.34 percent for the year 2000; 0.66 percent for the year 2001; and no tax beginning in 2002.
B. Raffles. There shall be a tax imposed on 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 a rate of one percent.
C. Amusement Games. There shall be a tax imposed on amusement games in the amount of 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 one percent.
D. Fishing Derbies. There shall be a tax imposed on fishing derbies 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 a rate of one percent.
E. Punchboards and Pulltabs – Commercial Stimulant Establishments. There shall be a tax imposed on any punchboard or pulltabs, sold by commercial stimulant establishments, in the amount of two percent in the year 2000; one percent in the year 2001; and no tax beginning in 2002 of the gross receipts obtained directly from the operation of the punchboards or pulltabs themselves.
F. Punchboards and Pulltabs – Charitable or Nonprofit Organizations. There shall be a tax imposed on any punchboard or pulltabs, sold by charitable or nonprofit organizations, in the amount of 6.66 percent in the year 2000; 3.33 percent in the year 2001, and no tax beginning in the year 2002, of the gross receipts therefrom, less the amount of money paid in cash actually awarded as prizes during the taxable period.
G. Card Playing. There shall be a tax imposed on card playing in the amount of five percent of the gross receipts received as fees charged persons for the privilege of playing card games. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 749 §§ 1, 2, 1985; Ord. 502 § 2, 1975)
3.20.030 Declaration of intent required.
In order that the City of Ferndale may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the City Treasurer, or such other duly appointed representative, a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by said City officer, together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than 15 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 taxing chapter only. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 7, 1975)
3.20.040 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 and shall be due and payable in quarterly installments, and remittance therefor, together with return forms, shall be made to the City of Ferndale, Washington, on or before the last day of the month next succeeding the quarterly period in which the tax accrued, that is, on January 1st, 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 on a regular basis discontinues operation of that taxable activity for a period of more than four consecutive weeks, or quits 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 City Treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the City 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, as the City Treasurer shall deem appropriate under the circumstances. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 3, 1975)
3.20.050 Method of payment.
Taxes payable hereunder shall be remitted to the City Treasurer, or such other duly appointed person, 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 officer be an acquittance or discharge of the tax unless the amount paid is the full amount due. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 5, 1975)
3.20.060 Nonpayment – Penalty.
If full payment of any tax or fee due under this chapter is not received by the City Treasurer, or such other person as has been duly appointed, on or before the due date, there shall be added to the amount due a penalty as follows:
A. One to 10 days late: Five percent of the tax due.
B. Eleven to 20 days late: 10 percent of the tax due.
C. Twenty-one to 31 days late: 15 percent of the tax due.
D. Thirty-two to 62 days late: 20 percent of the tax due.
In no event shall the penalty amount be less than $5.00. In addition to this penalty, the City Treasurer, or such other duly appointed representative, may charge the taxpayer interest of eight 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. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 6, 1975)
3.20.070 Failure to make return.
If any taxpayer fails, neglects or refuses to make and file a return as and when required under this chapter, the City Treasurer or authorized officer 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. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 9, 1975)
3.20.080 Taxes, penalties and fees constitute a debt to the City.
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the City of Ferndale, a municipal corporation, and may be collected by court proceedings the same as any other debt in like manner which shall be in addition to all other existing remedies. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 12, 1975)
3.20.090 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 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. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 8, 1975)
3.20.100 Records – Inspection and audit.
All books, records and other items required to be kept and maintained under this chapter 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 Treasurer or authorized officer or his designees, for the purpose of enforcing the provisions of this chapter. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 8, 1975)
3.20.110 Records not kept or maintained – Requirements.
Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this chapter in this jurisdiction so that the Treasurer or authorized officer 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 Treasurer or authorized officer 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 said officer 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. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 8, 1975)
3.20.120 Failure to produce records – Penalty fee or jeopardy assessment.
A. 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 Treasurer or authorized officer.
B. This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the Treasurer or authorized officer by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the Treasurer or authorized officer 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. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 8, 1975)
3.20.130 Rules and regulations.
The Treasurer, or such other authorized representative as duly appointed from time to time, shall have the power, and it shall be his duty, from time to time, 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 hereof, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 11, 1975)
3.20.140 Applicability to other license fees or taxes.
The tax herein levied shall be additional to any license fee or tax imposed or levied under any law or other ordinance of the City of Ferndale, Washington, except as herein otherwise expressly provided. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 10, 1975)
3.20.150 Variances.
The City Council of the City of Ferndale may, at its discretion, upon a showing of good cause, waive taxes levied herein upon any gambling activity conducted by a bona fide charitable or nonprofit organization or association. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 14, 1975)
3.20.160 Administration and collection.
A. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the City Treasurer, or such other authorized representative as shall be duly appointed. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the City Treasurer or that officer or authorized representative of the City of Ferndale. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.
B. 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.
C. The City of Ferndale may adopt from time to time such rules and regulations as may be reasonably necessary to enable the collection of the tax imposed herein. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 4, 1975)
3.20.170 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 Treasurer or authorized officer pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed $300.00, or by imprisonment in Whatcom County Jail for a term not exceeding 90 days, or by both such fine and imprisonment.
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. (Ord. 1226, 2000; Ord. 1160 § 1, 1997; Ord. 502 § 13, 1975)