Chapter 3.15
GAMBLING TAX
Sections:
3.15.030 Exemptions – Charitable and nonprofit organizations.
3.15.050 Administration of collection.
3.15.060 Delinquent taxes – Lien authorized – Collection actions.
3.15.070 Late penalty – Interest.
3.15.080 Notice of intention to engage in gambling activity – Filing with City.
3.15.090 Inspection and audit of premises, paraphernalia, books and records.
3.15.010 Definitions.
For the purposes of this chapter, the terms used herein shall have the meanings provided in Chapter 9.46 RCW, as the same now exists or may hereafter be amended, and as further provided by the rules and regulations of the Washington State Gambling Commission, as set forth in WAC Title 230 as the same now exists or may hereafter be amended, unless otherwise specifically provided herein. [Ord. 98-0013 § 1.]
3.15.020 Imposition of tax.
Pursuant to RCW 9.46.110 as the same now exists or may hereafter be amended, there is levied upon all persons, associations or organizations conducting or operating in the City any of the activities listed below a tax to be paid to the City, in the amount hereinafter specified:
A. Bingo and Raffles. A tax in the amount equal to 10 percent of the gross receipts from a bingo game or raffle, less the amount awarded as cash or merchandise prizes.
B. Punchboards and Pulltabs.
1. Commercial stimulant operators shall pay a tax in an amount equal to five percent of the gross receipts from the operation of punchboards and pulltabs;
2. Bona fide charitable or nonprofit organizations shall pay a tax in an amount equal to 10 percent of the gross receipts from the operation of the games, less the amount awarded as prizes or merchandise.
C. Social Card Games. Operators shall pay a tax equal to 15 percent of the gross receipts from such games. An amount equal to four-fifteenths of the social card game tax paid by operators of social card games shall be dedicated to funding City capital facilities plan projects; provided, however, that revenue collected from this tax shall be expended primarily for the purpose of enforcement of gambling laws pursuant to RCW 9.46.113.
D. Amusement games which are authorized for operation pursuant to the provisions of the WAC shall be subject to the levy of a tax in the amount of two percent of the gross receipts from the amusement game, less the amount awarded as prizes. Such tax is for the purpose of providing for the City’s actual costs of enforcement of the laws of the State of Washington and the City’s ordinances. [Ord. 04-0223 § 1; Ord. 98-0013 § 2.]
3.15.030 Exemptions – Charitable and nonprofit organizations.
A. Bingo and amusement games conducted by a bona fide charitable or nonprofit organization shall be exempt from the tax imposed by KMC 3.15.020, when such organization has no paid operating or management personnel, and its gross receipts from bingo or amusement games, or a combination thereof, does not exceed $5,000 per year, less the amount awarded as cash or merchandise.
B. No tax may be imposed on the first $10,000 of gross receipts, less the amount awarded as cash or merchandise prizes, from raffles conducted by any bona fide charitable or nonprofit organization. [Ord. 98-0013 § 3.]
3.15.040 Payment of tax.
A. The tax imposed by this chapter shall be due and payable in quarterly installments, and remitted to the City’s finance director, together with the required information on the return form(s), as prescribed by the finance director, on or before the last day of the month next succeeding the quarterly period in which the tax accrued.
B. If the tax imposed by this chapter equals $500.00 or less in any quarterly period, then any such installment may be combined and paid with the next succeeding quarterly installment; provided, however, that no taxpayer shall fail to make payment for more than two consecutive calendar quarters.
Payments made according to this subsection shall be remitted to the City’s finance director, together with the required information on the return form(s), as prescribed by the finance director, on or before the last day of the month next succeeding the quarterly period in which the tax accrued.
C. Any tax remaining unpaid on the first day of the second month next succeeding the quarterly period in which the tax accrued shall be delinquent, provided, however:
1. Whenever an entity subject to the tax imposed by this chapter ceases the taxable activity for a period of more than two consecutive calendar months the tax shall become due and payable on the tenth calendar day of the next succeeding calendar month;
2. Whenever the finance director, upon the concurrence of the city manager, determines that the City’s ability to collect the tax owing from the taxpayer may be in jeopardy, based upon a history of delinquent payment, an assignment for the benefit of creditors, or other reasonable evidence, the finance director, after not less than 10 days’ written notice to the taxpayer, may require the taxpayer to remit taxes owing hereunder at a shorter interval than required herein. Notice shall be given by regular and certified mail. In the event that the certified mail is refused by the taxpayer and returned to the City, notice shall be deemed effective upon the date of mailing of the notice by regular mail. [Ord. 98-0049 § 1; Ord. 98-0013 § 4.]
3.15.050 Administration of collection.
A. The finance director is hereby authorized to create a gambling tax return form which shall be available to the public in reasonable numbers in the finance director’s office during regular business hours. Taxes paid hereunder shall be accompanied by the gambling tax return form and a copy of the taxpayer’s quarterly report to the Washington State Gambling Commission for the period in which the tax has accrued. The taxpayer shall be required to swear and affirm under penalty of perjury under the laws of the State of Washington that the information given in the return is true, accurate and complete.
B. The finance director is authorized, but not required, to mail to taxpayers gambling tax return forms for remitting the tax owing hereunder. Failure of the taxpayer to receive such a form shall not excuse timely payment of all taxes due and owing hereunder. [Ord. 98-0013 § 5.]
3.15.060 Delinquent taxes – Lien authorized – Collection actions.
Whenever any tax imposed hereunder shall become delinquent, the finance director is authorized to file a lien upon the personal and real property used in the gambling activity taxable by this chapter in the same manner as provided for under RCW 84.60.010, as the same now exists or may hereafter be amended. Pursuant to RCW 9.46.110 as the same now exists or may hereafter be amended, 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. The finance director is further authorized to bring a civil action to collect fees, interest, penalties and delinquent taxes owing hereunder pursuant to RCW 9.46.350, as the same now exists or may hereafter be amended. [Ord. 98-0013 § 6.]
3.15.070 Late penalty – Interest.
A. A penalty equivalent to 25 percent of the tax imposed by this chapter shall be added to said tax in the event of a late filed gambling tax return form, or late payment of taxes.
B. In addition to an assessment of late penalties, any quarterly tax payment not paid by the due date shall bear interest at the greater of 12 percent per annum or the maximum legal rate. [Ord. 98-0049 § 3.]
3.15.080 Notice of intention to engage in gambling activity – Filing with City.
For the purposes of identifying those subject to the taxes imposed by this chapter, each person, association or organization intending to conduct or operate any gambling activity which requires a license pursuant to Chapter 9.46 RCW, as the same exists or may hereafter be amended, shall no later than five days prior to the commencement of any such gambling activity file with the finance director a sworn declaration of intent to conduct or operate such activity on a form to be prescribed by the finance director, together with a copy of any license issued for that gambling activity by the Washington State Gambling Commission or its designee. [Ord. 98-0013 § 8.]
3.15.090 Inspection and audit of premises, paraphernalia, books and records.
A. The premises and paraphernalia, and all the books and records of any person, association or organization conducting gambling activities pursuant to Chapter 9.46 RCW as now existing or hereafter amended, and any person, association or organization receiving profits therefrom or having any interest therein shall be subject to inspection and audit at any reasonable time, with or without notice, upon demand, by the finance director, or his or her designee for the purpose of determining compliance or noncompliance with the provisions of this chapter, Chapter 9.46 RCW, and any rules or regulations adopted thereunder. A reasonable time for the purpose of this section shall be:
1. If the items or records to be inspected or audited are located anywhere upon a premises, any portion of which is regularly open to the public or members and guests, then at any time when the premises are so open, or which they are usually open; or
2. If the items or records to be inspected or audited are not located upon the premises set out in subsection (A)(1) of this section, then at any time between the hours of 8:00 a.m. and 9:00 p.m., Monday through Friday.
B. Each person, organization or association engaging in any gambling activity taxable under this chapter shall maintain records respecting that activity which truly, completely and accurately disclose all information necessary for the City 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 five years.
C. It shall be the responsibility of each individual taxpayer, and for organizations, associations, or corporations the responsibility of each owner, officer, director or manager thereof, to make available at the times set forth above such financial records and information as the finance director or his or her designee may require in order to determine full compliance with this chapter. [Ord. 98-0013 § 9.]
3.15.100 Penalties.
A. Whoever, in any application for a license or in any book or record required to be maintained by this chapter or by the Washington State Gambling Commission or in any report required to be submitted to said commission or to the City hereunder, shall make any false or misleading statement, or make any false or misleading entry or willfully fail to maintain or make any entry required to be maintained or made, or who willfully refuses to produce for inspection by the finance director or his or her designee, any book, record or document required to be maintained or made by federal or State law, or this chapter, shall be guilty of a gross misdemeanor subject to the penalties set forth in RCW 9A.20.021, as now existing or hereafter amended.
B. RCW 9.46.185, 9.46.190 and 9.46.195, as now existing or hereafter amended, are hereby adopted by this reference as if set forth fully herein.
C. In addition to any other penalty authorized by this chapter, any person, association or organization violating any provision of this chapter may be subject to loss of its business license. [Ord. 98-0013 § 10.]