Chapter 5.12
ADMISSIONS TAX*
Sections:
5.12.010 Definitions.
5.12.020 Imposition of tax—Rate.
5.12.030 Cabaret, private club, and other places of entertainment.
5.12.040 Swimming pool, skating rink or golf course.
5.12.050 Resort or picnic grounds.
5.12.060 Counting number of admissions—Posting admission charge required.
5.12.070 Remittance of taxes collected.
5.12.080 Certificate of registration—Fee—Posting.
5.12.090 Certificate of registration—Application by other than owner, lessee, or custodian.
5.12.100 Director of finance and administration to adopt rules.
5.12.110 Effective date of tax.
5.12.112 Severability.
5.12.115 Violation—Penalty.
5.12.120 Violator deemed principal.
5.12.130 Applications and returns confidential.
5.12.140 Nonprofit tax-exempt performing arts organization rebate.
5.12.145 Nonprofit tax-exempt community service organization rebate.
5.12.150 Relief from payment to two municipalities.
* For the statutory provision authorizing code cities to impose any excises authorized by general law to any class city, see RCW 35A.82.020. For the provisions authorizing the levy of an admissions tax, see RCW 35.21.280.
5.12.010 Definitions.
For purposes of this chapter, words and terms shall have the following meanings:
(1) “Admission charge,” in addition to its usual and ordinary meaning, includes but is not limited in meaning to:
(A) A charge made for season tickets or subscriptions,
(B) A cover charge or a charge made for use of seats or tables, reserved or otherwise, and similar accommodations,
(C) A charge made for rental or use of equipment or facilities for purposes of recreation or amusement and, where the rental of the equipment or facilities is necessary to the enjoyment of the privilege for which a general admission is charged, the combined charge shall be considered as the admission charge,
(D) A charge made for admission to any theater, dance hall, amphitheater, private club, auditorium, observation tower, stadium, athletic pavilion or field, baseball or athletic park, circus, side show, swimming pool, outdoor amusement park or any similar place; and shall include equipment to which persons are admitted for purposes of recreation such as merry-go-rounds, ferris wheels, dodge ’ems, roller coasters, go carts and other rides whether such rides are restricted to tracts or not,
(E) A charge made for automobile parking where the amount of the charge is determined according to the number of passengers in an automobile;
(2) “Nonprofit tax-exempt performing arts organization” means an organization, corporation, or association:
(A) Currently recognized by the United States of America as exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code, as it be amended or replaced from time to time; and
(B) Primarily dedicated to benefiting the community through performing arts including acting, singing, dancing, and other forms of public entertainment; and
(C) Subject to the tax imposed under Section 5.12.020;
(3) “Person” means any individual, receiver, assignee, firm, copartnership, joint venture, corporation, company, joint stock company, association, society, or any group of individuals, acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise. (Ord. 4726 § 1, 2020: Ord. 2037 § 1, 1969)
5.12.020 Imposition of tax—Rate.
(a) There is hereby levied and imposed a tax upon every person without regard to age, who pays an admission charge as defined in Section 5.12.010; provided, that as contemplated by RCW 35.21.280 and 36.38.010, such tax shall not apply as to any person paying an admission charge to any activity of any elementary or secondary school. The tax here imposed shall be in the amount of five percent on each admission charge or charge for season or series ticket. Any fraction of tax of one-half cent or more shall result in a tax of the next highest full cent.
(b) The tax imposed by this section on a theater operating in Kirkland as of January 1, 2014, and showing motion pictures at least five days per week, six months out of the year, and using digital technology to project motion pictures, shall be reduced to zero on each admission charge, beginning on the date the transition to digital technology occurs and ending no later than June 30, 2017.
(c) Amounts paid for admission by season ticket or subscription shall be exempt if the amount which would be charged to the holder or subscriber for a single admission is fifteen cents or less.
(d) Any person having the use of a box or seat, permanently or for a specified period, shall pay in addition to the tax required for admission, under subdivision (a) of this section, a tax of five percent of the price of such box or seat, the same to be collected and remitted in the manner provided in Section 5.12.070 by the person selling such tickets. (Ord. 4433 § 1, 2014: Ord. 4400 § 1, 2013: Ord. 2585 § 1, 1981: Ord. 2037 § 2, 1969)
5.12.030 Cabaret, private club, and other places of entertainment.
The admission charge to any cabaret, any private club conducting cabaret activities, or any similar place of entertainment is deemed to be the total amount charged as an admission charge, a cover charge, and/or a charge made for the use of seats and tables reserved or otherwise, and other similar accommodations. (Ord. 2037 § 3, 1969)
5.12.040 Swimming pool, skating rink or golf course.
Where more than fifteen cents is required to be paid to gain entrance to any building, enclosure or area in which there is a swimming pool, skating rink, golf driving range, miniature golf course, short nine or municipal golf course, or to gain entrance to such pool, rink, or course itself, or for the use of the facilities thereof, the amount so paid or any rental paid by the person paying for such entry for use of equipment and facilities supplied him and appropriate to the enjoyment of the privilege for which the admission is charged, or the aggregate thereof, shall be deemed the admission charge. (Ord. 2037 § 4, 1969)
5.12.050 Resort or picnic grounds.
Any person paying more than fifteen cents to gain admission to any resort or picnic grounds is subject to a tax at three percent on such admission charge even though such amount includes a charge for use of equipment and facilities such as tables, stoves and bathhouses. If a lesser amount is charged to persons who do not use such equipment and facilities than those who do use such equipment and facilities, the lesser charge is deemed the admission charge. Where a separate charge is made for the use of equipment and facilities, such charge is not subject to the tax herein levied unless it constitutes or is part of an “admission charge.” Whenever an organization or club acquires the sole right to use a resort or picnic grounds, solely for the enjoyment of its members or employees and their friends, the amount paid for such right is an amount paid for an admission charge and subject to the tax herein levied; provided, that if the organization or club in turn charges its members or employees all or part of the amount so paid, such charge does not constitute an admission charge subject to the tax herein levied. Amounts paid for the privilege of parking cars in a resort or picnic grounds do not constitute an admission charge unless the amount of such charge is determined by the number of passengers in the automobile or the same charge is made to all persons who enter the resort or grounds, whether on foot or by other means of transportation. If a charge is made for each passenger in an automobile, in addition to a charge for parking facilities, the amount paid for the passengers is an admission charge and subject to the tax herein levied. The tax herein levied shall be paid by the person paying the admission charge and shall be collected and remitted by the person to whom the same is paid in the manner provided in Section 5.12.070. (Ord. 2037 § 5, 1969)
5.12.060 Counting number of admissions—Posting admission charge required.
Whenever a charge is made for admission to any place, a serially numbered or reserved seat ticket shall be furnished the person paying such charge unless written approval has been obtained from the director of finance and administration to use a turnstile or other counting device which will accurately count the number of paid admissions. The established price, any non-city tax, city tax, and total price at which every such admission ticket or card is sold shall be conspicuously and indelibly printed or written on the face or back of that part of the ticket which is to be taken up by the management of the place to which admission is gained. It is unlawful for any person to sell an admission ticket or card on which the name of the person conducting the event or the price is not so printed, stamped or written, or to sell or offer to sell an admission ticket or card at a price in excess of the price printed, stamped or written thereon. The admission tax due shall be based on the established price printed on each ticket. When a charge is made for admission, a sign must be posted in a conspicuous place on the entrance or ticket office which breaks down the admission charge as follows:
|
Established Price |
____________ |
|
Non-City Tax |
____________ |
|
City Tax |
____________ |
|
Total Price |
____________ |
(Ord. 4416 § 16, 2013: Ord. 3573 § 34, 1997: Ord. 2037 § 6, 1969)
5.12.070 Remittance of taxes collected.
Any person, including any municipal or quasi-municipal corporation, who receives any payment for any admission charge on which a tax is imposed by this chapter shall collect same from the person making the admission payment and shall remit the same to the director of finance and administration as herein provided. The tax required to be collected under this chapter shall be deemed held in trust by the person required to collect the same until remitted to the director of finance and administration as herein provided. Any person required to collect the tax imposed under this chapter who fails to collect same, or who collects the same but fails to remit the same to the director of finance and administration in the manner prescribed by this chapter shall be liable to the city for the amount of such tax, and shall, unless the remittance be made as herein required, be guilty of a violation of this chapter whether such failure be the result of his, her or its own act or the result of acts or conditions beyond his or its control. The tax imposed hereunder shall be collected from the person paying the admission charge at the time the admission charge is paid and such taxes shall be remitted by the person collecting the tax to the director of finance and administration in monthly remittances on or before the fifteenth day of the month succeeding the end of the monthly period in which the tax is collected or received and accompanied by such reports as the director of finance and administration shall require; provided, that the director of finance and administration, for good cause shown, may extend the time for making and filing the return and remittance of the tax due. Payment or remittance of the tax collected may be made by check unless payment or remittance is otherwise required by the director of finance and administration, but payment by check shall not relieve the one collecting the tax from liability for payment and remittance of the tax to the director of finance and administration unless the check is in the full and correct amount and until the check is honored. Any person receiving any payment for admissions shall make out a return upon such forms and setting forth such information as the director of finance and administration may require, showing the amount of the tax upon admissions for which he is liable for the preceding monthly period, and shall sign and transmit the same to the director of finance and administration with a remittance for the amount; provided, that the director of finance and administration may in his or her discretion require verified annual returns from any person receiving admission payments setting forth such additional information as he or she may deem necessary to determine correctly the amount of tax collected and payable. If the return provided for herein is not made and the tax is not collected and paid within fifteen days after the end of the month in which the tax was collected, the director of finance and administration shall add a penalty of ten percent of the tax per month or fraction thereof for each month overdue, which shall be added to the amount of the tax due, and remitted in the same manner. Whenever any theater, circus, show, exhibition, entertainment or amusement makes an admission charge which is subject to the tax herein levied, and the same is of a temporary or transitory nature or there exists a reasonable question of financial responsibility, of which the director of finance and administration shall be the judge, the director of finance and administration may require the report and remittance of the admission tax immediately upon the collection of the same, at the conclusion of the performance or exhibition, or at the conclusion of the series of performances or exhibitions or at such other times as the director of finance and administration shall determine; and failure to comply with any requirement of the director of finance and administration as to report and remittance of the tax as required shall be a violation of this chapter. Every person liable for the collection and payment of the tax imposed by this chapter shall keep and preserve for a period of five years all unused tickets, ticket manifests, books and all other records from which can be determined the amount of admission tax which he or she was liable to remit under the provisions of this chapter, and all such tickets, books and records shall be open for examination and audit at all reasonable times by the director of finance and administration or his or her duly authorized agent. Written permission may be granted by the director of finance and administration to destroy unused tickets prior to the expiration of the five-year period. (Ord. 4416 § 17, 2013: Ord. 3573 § 35, 1997: Ord. 2037 § 7, 1969)
5.12.080 Certificate of registration—Fee—Posting.
Any person conducting or operating any place for entrance to which an admission charge is made shall, on a form prescribed by the director of finance and administration, make application to and procure from the city a certificate of registration, the fee for which shall be one dollar, which certificate shall continue valid until the thirty-first day of December of the year in which the same is issued. Such certificate of registration, or duplicate original copies thereof to be issued by the director of finance and administration without additional charge, shall be posted in a conspicuous place in each ticket or box office where tickets of admission are sold. (Ord. 4416 § 18, 2013: Ord. 3573 § 36, 1997: Ord. 2037 § 8, 1969)
5.12.090 Certificate of registration—Application by other than owner, lessee, or custodian.
Whenever the applicant for a certificate of registration, obtained for the purpose of operating or conducting a temporary or transitory amusement, entertainment or exhibition, is not the owner, lessee, or custodian of the buildings, lots or place where the amusement is to be conducted, the tax imposed by this chapter shall be reported and remitted as provided in Section 5.12.070 hereof by the person who is the owner, lessee or custodian, if not paid by the person conducting the amusement, entertainment or exhibition. The applicant for a certificate of registration in any case shall furnish the director of finance and administration, with the application with the name and address of the owner, lessee or custodian of the premises upon which the amusement is to be conducted, and such owner, lessee or custodian shall be notified by the director of finance and administration of the issuance of such certificate and of his or her joint liability for collection and remittance of such tax. (Ord. 4416 § 19, 2013: Ord. 3573 § 37, 1997: Ord. 2037 § 9, 1969)
5.12.100 Director of finance and administration to adopt rules.
The director of finance and administration shall have power to adopt rules and regulations not inconsistent with the terms of this chapter for carrying out and enforcing the payment, collection and remittance of the tax herein levied; and a copy of the rules and regulations shall be on file and available for public examination in the director of finance and administration’s office. Failure or refusal to comply with any such rules and regulations is a violation of this chapter. (Ord. 4416 § 20, 2013: Ord. 3573 § 38, 1997: Ord. 2037 § 10, 1969)
5.12.110 Effective date of tax.
The tax hereby levied and imposed shall be collected and paid on and after April 1, 1969. (Ord. 2037 § 11, 1969)
5.12.112 Severability.
If any portion of this chapter shall be adjudged invalid, such invalidity shall not affect the portions which are not adjudged invalid. (Ord. 2037 § 12, 1969)
5.12.115 Violation—Penalty.
Each violation of or failure to comply with the provisions of this chapter shall constitute a separate offense and shall subject the offender to a fine of not to exceed two hundred fifty dollars, or to imprisonment for not more than ninety days, or to both such fine and imprisonment. (Ord. 2037 § 13, 1969)
5.12.120 Violator deemed principal.
Any person who directly or indirectly performs or omits to perform any act in violation of this chapter, or aids or abets the same, whether present or absent, and every person who directly or indirectly counsels, encourages, hires, commands, induces or otherwise procures another to commit such violation is, and shall be, a principal under the terms of this chapter and may be proceeded against as such. (Ord. 2037 § 14, 1969)
5.12.130 Applications and returns confidential.
The applications and returns made to the director of finance and administration pursuant to this chapter shall not be made public, nor shall they be subject to the inspection of anyone except the city manager, city attorney, director of finance and administration or authorized agent, and members of the city council, and it is unlawful for any person to make public or to inform another person as to the contents or any information contained in or to permit inspection of any application or return except as in this section authorized. (Ord. 4416 § 21, 2013: Ord. 3573 § 39, 1997: Ord. 2037 § 15, 1969)
5.12.140 Nonprofit tax-exempt performing arts organization rebate.
A nonprofit performing arts tax-exempt organization may receive a rebate on any admissions taxes collected under this chapter, provided the following subsections are met:
(1) The nonprofit performing arts tax-exempt organization:
(A) Publicly sponsors and through its members, representatives or personnel promotes and publicizes the event; or
(B) Publicly sponsors the event and:
(i) Performs a major portion of the performance; or
(ii) Supplies a major portion of the materials on exhibit; or
(iii) When the event is a part of a season or series of performances or exhibitions, performs the major portion of the performances or exhibitions in the season or series or supplies a major portion of the materials on exhibit;
(2) The nonprofit performing arts tax-exempt organization receives the use and benefit of the admission taxes collected; and
(3) The nonprofit performing arts tax-exempt organization identifies its nonprofit status in its application for certificate of registration and provides proof of same, as required by the director of finance and administration. (Ord. 4726 § 2, 2020)
5.12.145 Nonprofit tax-exempt community service organization rebate.
(a) The city council may provide a rebate on admissions taxes collected under this chapter to non-profit tax-exempt organizations whose primary purpose is community service, provided:
(1) The nonprofit tax-exempt community service organization is currently recognized by the United States of America as exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code, as it be amended or replaced from time to time; and
(2) The nonprofit tax-exempt community service organization receives the use and benefit of the admission taxes collected; and
(3) The nonprofit tax-exempt community service organization identifies its nonprofit status in its application for certificate of registration and provides proof of same, as required by the director of finance and administration.
(b) The city council provides such a rebate by resolution that identifies the public benefit of the use of the admission taxes collected and rebated to the nonprofit tax-exempt community services organization. (Ord. 4726 § 3, 2020)
5.12.150 Relief from payment to two municipalities.
Whenever a charge is made for admission to any place which charge is subjected to an admission tax levied by any other municipality then the rate imposed by this chapter either by way of admission tax or license fee shall be reduced by fifty percent. (Ord. 2051 § 2, 1969: Ord. 2037 § 17, 1969)