Chapter 3.70
GAMBLING TAX
Sections:
3.70.040 Administration and collection.
3.70.060 Failure to pay in full – Penalty fee.
3.70.070 Declaration of intent – Filing.
3.70.080 Declaration of intent – Renewal.
3.70.090 Records required – Inspection and audit.
3.70.100 Refunds – Excess payments.
3.70.110 Failure to file return – Tax penalty.
3.70.120 Tax in addition to license fees.
3.70.130 Power to adopt rules and regulations.
3.70.010 Definitions.
For the purposes of this chapter, the words and terms used shall have the same meaning each has under Chapter 218, Laws of 1973, 1st Ex. Sess. 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 as the context in which they are used clearly indicates that they be given some other meaning. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 1, 1978).
3.70.020 Levy.
There is 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. Effective January 1, 2000, bingo and raffles in the amount of five percent of the gross receipts therefrom after deducting the amount of money paid in cash and paid for merchandise actually awarded as prizes during the taxable period. Taxation of amusement games shall be in the amount of two percent of the gross receipts therefor less the amount paid for as prizes. No tax shall be imposed under the authority of this chapter on bingo, raffles 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 income from bingo, raffles or amusement games, or any combination thereof, not exceeding $5,000 per year less the amount paid for as prizes, but shall, nevertheless, file the declaration of intent required by FMC 3.70.070;
B. Punchboards or pulltabs in the amount of five percent of the gross receipts directly from the operation of the punchboards or pulltabs themselves;
C. Effective January 1, 2004, card playing in the amount of four percent of gross receipts received as fees charged persons for the privilege of playing in card games;
D. Fund-raising events, as defined by RCW 9.46.0233, in the amount of 10 percent of the gross receipts derived from the fund-raising event. For the purpose of this section, “gross receipts” means the gross wagers and bets received by the organization less the amount of money paid by the organization as winnings and the purchase cost of prizes given as winnings. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1519-04 § 1, 2004; Ord. 1490-03 § 1, 2003; Ord. 1447 § 1, 2001; Ord. 1377 § 1, 2000; Ord. 1358 § 1, 1999; Ord. 1183 § 2, 1994; Ord. 997 § 1, 1989; Ord. 463 § 2, 1978).
3.70.025 Use of funds.
All funds collected pursuant to the provisions of FMC 3.70.020 shall be principally expended on gambling enforcement activities. Any moneys collected and not spent for that purpose shall be allocated to the park acquisition and development fund and the recreational and pedestrian capital facilities fund. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1377 § 2, 2000).
3.70.030 Payment.
A. The taxes imposed on one-, two-, or three-day affairs shall be due and payable within 72 hours from the completion of the event. The taxes imposed on all other activities under this chapter shall be due and payable in monthly installments and remittance therefor shall be made on or before the fifteenth day of the month next succeeding the end of the monthly period in which tax accrued.
B. The taxpayer shall, on or before the fifteenth day of the month, make out a return on such forms and setting forth such information as the finance director-treasurer may require showing the amount of the tax for which he is liable for the preceding monthly period, sign and transmit the same to the finance director-treasurer together with a remittance for such amount, provided:
1. Whenever any person, association or organization taxable under this chapter conducting or operating a taxable activity on a regular basis terminates the business, sells out or otherwise disposes of its business, any tax due under this chapter shall become due and payable and such taxpayer shall within 10 days thereafter make a return and pay the tax due.
2. Whenever it appears to the finance director-treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the finance director-treasurer, after not less than 10 days’ notice to the taxpayer, is authorized to require that the taxpayer remit taxes and returns at such shorter intervals than monthly as the finance director-treasurer shall deem appropriate under the circumstances. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 3, 1978).
3.70.040 Administration and collection.
A. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the finance director-treasurer. The taxpayer shall be required to swear and affirm by signature that the information given in the return is true, accurate and complete under penalty of perjury.
B. The finance director-treasurer is authorized, but not required, to mail to taxpayer forms for returns. Failure of the taxpayer to receive such a form shall not excuse the taxpayer from making the return and timely paying all taxes due. The finance director-treasurer shall make forms available to the public in reasonable numbers in the finance director-treasurer’s office during regular business hours. (Ord. 1808 § 3, 2012; Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 4, 1978).
3.70.050 Remittance.
Taxes payable under this chapter shall be remitted to the finance director-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 a draft or check, the tax shall not be deemed paid until the draft or check is accepted in the usual course of business. Nor shall the acceptance of any sum by the finance director-treasurer be a quittance or discharge of the tax unless the amount paid is the full amount due. The return and copy of the report to the Washington State Gambling Commission shall be filed in the office of the finance director-treasurer after notation of that office upon the return of the amount actually received. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 5, 1978).
3.70.060 Failure to pay in full – Penalty fee.
A. If full payment of any tax or fee due under this chapter is not received by the finance director-treasurer on or before the due date, there shall be added as follows:
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1 – 10 days late |
10% of tax due |
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11 – 21 days late |
15% of tax due |
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22 – 31 days late |
20% of tax due |
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32 – 60 days late |
25% of tax due |
B. But in no event shall the penalty amount be less than $50.00. In addition to this penalty, the finance director-treasurer shall charge the taxpayer interest of eight percent of all taxes and fees due for each 30-day period or portion thereof that the amounts are past due. Failure to make payment following the day the tax amount initially became due shall be both a civil and a criminal violation of this section. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 6, 1978).
3.70.070 Declaration of intent – Filing.
A. In order that the city may identify those persons that are subject to taxation under this chapter, each person, association or organization shall file with the finance director-treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the finance director-treasurer together with a copy of the license issued therefor by the Washington State Gambling Commission.
B. 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. Failure to timely file shall not excuse any person, association or organization from tax liability. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 7, 1978).
3.70.080 Declaration of intent – Renewal.
A new declaration of intent to conduct or operate any of the activities taxable under this chapter shall be required prior to the recommencement of the activity following the expiration, suspension or revocation of any license previously issued by the Washington State Gambling Commission in the same manner as described in FMC 3.70.070. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 8, 1978).
3.70.090 Records required – Inspection and audit.
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 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.
B. In addition, all information and items required by the Washington State Gambling Commission and the United States Internal Revenue Service respecting taxation shall be kept and maintained for the period required by those agencies.
C. 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 during normal business hours with or without notice at the place where such records are kept on demand by the city council, the city attorney, or the finance director-treasurer, or their designees, for the purpose of enforcing the provisions of this taxing chapter, and for the purpose of determining whether the proper tax is being paid. Failure of a taxpayer to keep books and records as required by this section shall be a bar to contesting the assessment of taxes as estimated by the finance director-treasurer. 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 above-stated officials or their designees may examine them conveniently, the taxpayer shall either:
1. Produce all of the required books, records or items within the jurisdiction for such inspection within five days following a request of the above officials that he do so; or
2. Bear the actual cost of inspection by the above officials or their designees at the location where such books, records or items are located; provided, that a taxpayer choosing to bear these costs shall pay in advance to the above-stated officials or their designees the estimated costs 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. (Ord. 1808 § 4, 2012; Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 9, 1978).
3.70.100 Refunds – Excess payments.
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 finance director-treasurer that within three years immediately preceding receipt by the finance director-treasurer of the application by the taxpayer or a refund or an audit in the absence of such an application within the three years immediately preceding the commencement by the finance director-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 to the city within such period of three years shall be credited to the taxpayer’s account or shall be refunded to the taxpayer at the taxpayer’s option. No refund or credit shall be allowed with respect to the finance director-treasurer for more than three years before the date of such application for 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 finance director-treasurer shall mail a statement by certified mail to the taxpayer showing the balance due including the tax amount or the penalty, assessments and fees, and it shall be a separate additional violation of this chapter if a taxpayer fails to make payment in full within 10 calendar days of such mailing. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 10, 1978).
3.70.110 Failure to file return – Tax penalty.
If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the finance director-treasurer is authorized to determine the amount of the tax payable together with any penalty and/or interest assessed under the provisions of this chapter and by certified mail to notify such taxpayer of the amount so determined, which amount shall thereupon become the tax penalty and/or interest and shall become immediately due and payable. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 11, 1978).
3.70.120 Tax in addition to license fees.
The tax levied in this chapter shall be additional to any license fee or tax imposed or levy under any law or any other ordinance of the city except as otherwise expressly provided in this chapter. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 12, 1978).
3.70.130 Power to adopt rules and regulations.
The finance director-treasurer shall have the power and it shall be her duty from time to time to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with superior law for the purposes of carrying out the provisions hereof, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 13, 1978).
3.70.140 Tax a debt to city.
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city, a legal subdivision of the state, 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. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 14, 1978).
3.70.150 Right of recovery.
A. The right of recovery by the city from the taxpayer for any tax provided under this chapter shall be outlawed after the expiration of three calendar years from the date the tax became due.
B. 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. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 463 § 15, 1978).
3.70.160 Violation – Penalty.
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 director-treasurer pursuant thereto shall be guilty of a misdemeanor. Any taxpayer who engages in or carries on any gambling activities 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 in which the gambling activity is carried on. (Ord. 1777 § 1 (Exh. A), 2012; Ord. 1748 § 1 (Exh. A), 2011; Ord. 1183 § 2, 1994; Ord. 842 § 3, 1986; Ord. 463 § 16, 1978).