Chapter 5.06
GAMBLING TAX
Sections:
5.06.020 Persons subject to tax – Tax rates.
5.06.030 Special rules for charitable or nonprofit organizations.
5.06.040 Notice of intention to engage in activity to be filed.
5.06.050 Tax – Quarterly computation and payment – Exceptions.
5.06.060 Tax – Administration and collection.
5.06.070 Tax – Method of payment.
5.06.080 Tax – Penalty for failure to make timely payment.
5.06.090 Tax – Overpayment or underpayment.
5.06.100 Tax – Failure to make return.
5.06.110 Tax – Additional to other fees or taxes.
5.06.130 Records – Inspection and audit.
5.06.140 Records – Penalty for failure to produce for inspection.
5.06.150 Taxes, penalties and fees constitute debt to municipality.
5.06.160 Limitation on right to recovery.
5.06.170 Finance director to make rules.
5.06.010 Definitions.
For the purposes of this chapter, the words and terms used shall have the same meaning as each has in Chapter 9.46 RCW, as amended, and under the rules of the State Gambling Commission, WAC Title 230, unless otherwise specifically provided or the context in which they are used in this chapter clearly indicates that they be given some other meaning. (Ord. 818 § 1, 2000)
5.06.020 Persons subject to tax – Tax rates.
There is levied upon all persons, associations and organizations conducting or operating within the jurisdiction of the city of Lake Forest Park any of the activities listed below a tax in the amount of gross receipts therefrom, less the amount of money paid in cash or for the merchandise actually awarded as prizes during the taxable period, multiplied by the percent established for each activity:
|
Activity |
Rate Established |
|---|---|
|
Bingo: |
5% |
|
Raffles: |
5% |
|
Amusement games: |
2% |
|
Punchboards or pull tabs: |
10% |
|
Card playing: |
20% |
(Ord. 818 § 1, 2000)
5.06.030 Special rules for charitable or nonprofit organizations.
A. Bingo or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization which 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, are exempt from taxation.
B. No tax shall be imposed on the first $10,000 of gross receipts less the amount awarded as cash or merchandise from raffles conducted by any bona fide charitable or nonprofit organization. (Ord. 818 § 1, 2000)
5.06.040 Notice of intention to engage in activity to be filed.
In order that the city may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the finance director a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by that officer, together with a copy of the license issued therefor by the State Gambling Commission. The filing shall be made not later than 10 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 any tax liability. (Ord. 818 § 1, 2000)
5.06.050 Tax – Quarterly 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, shall be due and payable in quarterly installments, and remittance therefor, together with return forms, shall be made to the city on or before January 31st, 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. Except as provided in subsection B of this section, whenever any person, association or organization taxable under this chapter 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, sells out, or otherwise disposes of its business, or terminates the 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.
B. It is recognized that some bona fide charitable or bona fide nonprofit organization taxpayers will be conducting or operating taxable activities only upon an occasional and random basis. Except as provided in subsection C of this section, when such a taxpayer conducts only one taxable activity during any calendar quarter, the duration of each such activity does not exceed 15 consecutive calendar days, and the gross receipts therefrom do not exceed $1,500 per quarter, that taxpayer need not remit the tax due with a return therefor until on or before January 31st of the year following that year in which the activity took place. Such returns shall be made upon a special form to be supplied by the finance director.
C. Whenever it appears to the finance director that the collection of taxes from any person, association or organization may be in jeopardy, that officer, after not less than five days’ notice to the taxpayer, is authorized to require that taxpayer to remit taxes and returns at such shorter intervals than quarterly or annually, as that officer shall deem appropriate under the circumstances. (Ord. 818 § 1, 2000)
5.06.060 Tax – Administration and collection.
A. The finance director shall be responsible for administration and collection of the various taxes imposed by this chapter. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by that officer. The taxpayer shall be required to swear and affirm 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 forms for returns. Failure of the taxpayer to receive such a form shall not excuse a taxpayer from making the return and timely paying all taxes due. The finance director shall make forms available to the public in reasonable numbers in the City Hall during regular business hours.
C. In addition to the return form, a copy of the taxpayer’s quarterly report to the 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. (Ord. 818 § 1, 2000)
5.06.070 Tax – Method of payment.
Taxes payable under this chapter shall be remitted to the finance director 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 finance director be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return, and copy of quarterly report to the State Gambling Commission, shall be filed in the office of the finance director after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 818 § 1, 2000)
5.06.080 Tax – Penalty for failure to make timely payment.
A. A penalty equal to a percent of the tax due shall be imposed upon any delinquent tax as follows:
|
Days delinquent |
Penalty |
|---|---|
|
1 – 10 |
5% |
|
11 – 20 |
10% |
|
21 – 31 |
20% |
|
32 and over |
50% |
In addition to this penalty, the finance director may charge the taxpayer interest of 18 percent per year of all taxes due for each 30-day period, or portion thereof, that said amounts are past due.
B. 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. 818 § 1, 2000)
5.06.090 Tax – Overpayment or underpayment.
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 refunded to the taxpayer at the taxpayer’s option. The finance director shall allow no refund or credit with respect to any tax paid more than three years before the date of such application or examination.
B. A tax paid which is less than that properly due, or no tax paid, the finance director shall mail a statement to the taxpayer showing the balance due, including the tax amount or penalty assessments and fees, and it shall be a separate, additional violation of this chapter, both civil and criminal, if the taxpayer fails to make payment in full within 10 calendar days of such mailing. (Ord. 818 § 1, 2000)
5.06.100 Tax – Failure to make return.
If any taxpayer fails, neglects or refuses to make and file a return when required under this chapter, the finance director is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed, and notify such taxpayer by mail 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. 818 § 1, 2000)
5.06.110 Tax – Additional to other fees or taxes.
The tax levied in this chapter shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the city, except as otherwise expressly provided in this chapter. (Ord. 818 § 1, 2000)
5.06.120 Records – Required.
Each person, association or organization engaging in an activity taxable under this chapter shall maintain records respecting that activity adequate to determine the taxpayer’s tax liability under this chapter. 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 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. 818 § 1, 2000)
5.06.130 Records – Inspection and audit.
A. For tax enforcement purposes, all books and records required to be kept and maintained under this chapter shall be subject to, and immediately made available for, inspection and audit by the finance director, during business hours, with or without notice, at the place where such records are kept.
B. A taxpayer who does not keep all of the books and records required to be kept or maintained by this chapter in this jurisdiction so that the finance director may examine them conveniently, the taxpayer shall either:
1. Produce all of the required books and records within this jurisdiction for such inspection within 15 days following a request for inspection by the finance director; or
2. Bear the actual cost of inspection by the finance director at the location where such books and records are located; provided, that a taxpayer choosing to bear these costs shall pay in advance to the finance director 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. 818 § 1, 2000)
5.06.140 Records – Penalty for failure to produce for inspection.
A. A taxpayer who fails, neglects or refuses to produce such books and records, 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 finance director.
B. This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of tax owed, unless the taxpayer proves otherwise by competent evidence. The finance director shall notify taxpayer by mail of the amount of tax so determined, together with any penalty and/or interest, and the total of such amounts shall thereupon become immediately due and payable. (Ord. 818 § 1, 2000)
5.06.150 Taxes, penalties and fees constitute debt to municipality.
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city, a municipal corporation, 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. 818 § 1, 2000)
5.06.160 Limitation on right to recovery.
The city’s right to recover delinquent taxes under this chapter shall expire three calendar years from the date the tax became due. (Ord. 818 § 1, 2000)
5.06.170 Finance director to make rules.
The finance director is authorized 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 of this chapter. (Ord. 818 § 1, 2000)
5.06.180 Appeal.
A decision of the finance director may be appealed to the city council by filing a notice of appeal with the city clerk within 10 days after such decision is made. The city council may affirm, reverse, or modify such administrative determination. The decision of the city council may be appealed to the King County superior court within 20 days after the decision is made. (Ord. 818 § 1, 2000)
5.06.190 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 pursuant hereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed $500.00, or by imprisonment in the city jail for a term not exceeding six months, or by both such fine and imprisonment. Any second or subsequent offense shall be a gross misdemeanor. (Ord. 818 § 1, 2000)
5.06.200 Public nuisance.
Unauthorized gambling is declared a public nuisance subject to abatement as such. Engaging in authorized gambling without complying with the provisions of this chapter is declared a public nuisance and subject to abatement as such. (Ord. 818 § 1, 2000)