Chapter 3.26
ADMISSIONS TAX
Sections:
3.26.010 Exercise of revenue license power.
3.26.015 General administrative provisions apply.
3.26.020 Definitions.
3.26.025 Tax imposed.
3.26.030 Tax rate.
3.26.035 Exemptions.
3.26.036 Deductions.
3.26.040 Tax due.
3.26.050 Repealed.
3.26.060 Repealed.
3.26.070 Repealed.
3.26.080 Repealed.
3.26.090 Repealed.
3.26.100 Repealed.
3.26.110 Repealed.
3.26.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the city code.
(Ord. No. 4342, § 3, 11-19-19)
3.26.015 General administrative provisions apply.
The administrative provisions contained in Chapter 3.29 KCC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein.
(Ord. No. 4342, § 3, 11-19-19)
3.26.020 Definitions.
The following definitions shall apply throughout this chapter:
A. Admission charge, in addition to its usual and ordinary meaning, means a monetary charge for an event open to the public including, but not limited to, the following:
1. A charge made for season tickets or subscriptions;
2. A cover charge or a charge made for use of seats and tables, reserved or otherwise, and similar accommodations;
3. A charge made for food and refreshments in any place where any free entertainment, recreation, or amusement is provided;
4. If a general admission fee is charged for entry onto the premises where a rental occurs and if the rental of equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge; provided, however, that a general admission fee must be charged for entry onto the premises where a rental occurs before the rental can be taxed under this chapter;
5. If a general admission fee is charged for entry onto the premises where an activity occurs (such as, and without limitation, a bowling alley or ice skating rink) and if the activity charge is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge; provided, however, that a general admission fee must be charged for entry onto the premises where an activity occurs before the activity charge can be taxed under this chapter;
6. Automobile parking charges if the amount of the charge is determined according to the number of passengers in the automobile;
7. If the ticket price is accompanied by a service charge, mailing fee, or other ancillary payment, per ticket and/or per order, whether or not they are printed on the ticket, the admission tax shall be based upon the total sum of the admission price plus any such surcharge(s).
8. Any other charge for entrance and observation.
B. Collecting entity means any person, business, association, organization, or other entity entrusted with the collection and remittance of admission taxes under this chapter.
C. Governmental entity means any federal, state, or local government, or branch thereof, and also includes any public facility or any public facility, service, or utility district that is exempt from federal income taxation pursuant to Section 501(c)(1) or (3) of the Internal Revenue Code, as it may be amended from time to time.
D. Nonprofit tax-exempt organization means an organization, corporation, or association organized and operated for the advancement, appreciation, public exhibition, or performance, preservation, study, and/or teaching of the performing arts, visual arts, history, science, or a public charity providing human services, or a public education entity, which is currently exempt from federal income taxation pursuant to Section 501(c)(1) or (3) of the Internal Revenue Code, as it may be amended from time to time.
E. Secondary or elementary school means any public or private primary school, middle school, junior high school, high school, or any accredited college, junior college, university, or the recognized student body association thereof.
F. By way of illustration only, this tax applies to any nonexempt admission charge, as defined in this section, collected for admission to any theater, cinema, dance hall, cabaret, adult entertainment cabaret, circus, side show, outdoor amusement park, dinner theatre, music concerts, radio shows, and television shows.
G. Chapter shall mean Chapter 3.26 KCC, as it may be amended or replaced from time to time.
(Ord. No. 4342, § 3, 11-19-19)
3.26.025 Tax imposed.
In accordance with RCW 35.21.280, there is levied and shall be collected a tax from every person, without regard to age, who pays an admission charge to any place within the city limits. The tax shall be measured by applying the rate set forth in this chapter to the admission charge. The tax shall be held in trust by the business, association, organization, or other entity charging and collecting admission taxes until the taxes are remitted to the finance director under KCC 3.26.030. No tax shall be levied on any person who is admitted free of charge and the tax on reduced admission charges shall be calculated on the reduced charge and not on the regular admission charge.
(Ord. No. 3678, § 1, 1‑20‑04; Ord. No. 3964, § 1, 6‑15‑10; Ord. No. 4342, § 3, 11-19-19. Formerly 3.26.010)
3.26.030 Tax rate.
The amount of the tax charged on admission charges shall be equal to the admission charge multiplied by the rate of five percent.
(Ord. No. 3678, § 1, 1‑20‑04; Ord. No. 4342, § 3, 11-19-19. Formerly 3.26.020)
3.26.035 Exemptions.
No tax shall be imposed under the authority of this chapter on the following:
A. Admission charges for any activity of any elementary or secondary school, any governmental entity, or any nonprofit tax-exempt organization. However, governmental activities operated in the manner of a separate business enterprise shall not be exempt from this tax. By way of example and not limitation, a business enterprise subject to the admissions tax levy could include an event center or golf course, if operated as a business activity in a separate fund.
B. Events sponsored by nonprofit tax-exempt organizations if the nonprofit tax-exempt organization publicly sponsors and promotes the event and the nonprofit tax-exempt organization receives the use and benefit of the admission charges collected.
(Ord. No. 4342, § 3, 11-19-19)
3.26.036 Deductions.
In computing the tax imposed by this chapter, the following amounts may be deducted from the measure of the tax: Amounts derived from business which the city is prohibited from taxing under the Constitution of this state or the Constitution or laws of the United States.
(Ord. No. 4342, § 3, 11-19-19)
3.26.040 Tax due.
A. The tax imposed by this chapter shall be due and payable in quarterly installments.
1. Whenever any collecting entity quits business, sells out, or otherwise disposes of its business, or terminates the business, any tax due shall become due and payable immediately, and the collecting entity shall, within 10 days thereafter, submit a return form and pay the tax due.
2. Whenever it appears to the finance director that the collection of taxes from any collecting entity may be in jeopardy, the finance director, after not less than 10 days’ prior written notice to the collecting entity, is authorized to require that the collecting entity remit taxes due and deliver returns at shorter intervals than otherwise provided, as the finance director deems it appropriate under the circumstances.
3.26.060 Failure to make timely payment of tax or fee – Penalties.
Repealed by Ord. No. 4342.
(Ord. No. 3678, § 1, 1‑20‑04)