Chapter 4.40
Gambling Tax
Sections:
4.40.010 Declaration of policy.
4.40.030 Tax on bingo, raffles and amusement games.
4.40.040 Tax on punchboards and pull tabs.
4.40.070 Over and under payment.
4.40.080 Failure to make a return.
4.40.090 Appeal to city council.
4.40.100 City clerk-treasurer to make rules.
4.40.110 False returns unlawful.
4.40.120 Tax additional to others.
4.40.140 Prorating taxes among municipalities.
4.40.150 Penalty for delinquent payments and late returns.
4.40.160 Violation--Penalties.
4.40.180 Interpretation of provisions.
4.40.010 Declaration of policy.
It is the policy of the city of Montesano to authorize bingo, raffles, amusement games, pull tabs and punchboards as same are authorized and permitted by the laws of the state of Washington and rules and regulations promulgated by the Gambling Commission of the state of Washington. It is the further policy of the city of Montesano to permit advertising of bingo, raffles, amusement games, pull tabs and punchboards. Nothing in this chapter shall be deemed to authorize or permit activities or procedures prohibited by the laws of the state of Washington or prohibited by the rules and regulations of the Gambling Commission of the state of Washington. (Ord. 960 §1, 1974).
4.40.020 Definitions.
"Amusement game" means a game played for entertainment in which:
1. The contestant actively participates;
2. The outcome depends in a material degree upon the skill of the contestant;
3. Only merchandise prizes are awarded;
4. The outcome is not in the control of the operator;
5. The wagers are placed, the winners are determined, and a distribution of prizes or property is made in the presence of all persons placing wagers at such game;
6. Said game is conducted by a bona fide charitable or nonprofit organization.
"Bingo" means a game in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random and in which no cards are sold except at the time and place of the game, when the game is conducted by a bona fide charitable or nonprofit organization which does not conduct or allow its premises to be used for conducting bingo on more than three occasions per week and which does not conduct bingo in any location which is used for conducting bingo on more than three occasions per week.
"Bona fide charitable or nonprofit organization" means any organization duly existing under the provisions of Chapters 24.12, 24.20 or 24.28 RCW, or any nonprofit corporation duly existing under the provisions of Chapter 24.03 RCW for charitable, benevolent, eleemosynary, educational, civic, patriotic, political, social, fraternal, athletic or agricultural purposes only, all of which in the opinion of the Gambling Commission of the State of Washington have been organized and are operated primarily for purposes other than the operation of gambling activities authorized under Chapter 9.46 of the Revised Code of Washington, as the same now exists or may hereafter be amended. This section shall be interpreted so as to be consistent with the provisions of RCW 9.46.0209, as now existing or hereafter amended or superseded.
"Person" means any individual, firm, partnership, association, corporation, company, group of individuals working together for a common purpose or an organization of any kind.
"Gross revenue, gross receipt, or income" is defined as the total sum of money or value received from the particular activity before any deductions on account of operational and maintenance expenses, and without any deduction on account of capital outlay or costs of prizes, and without deduction for any other expense of any kind or nature. (Ord. 1482 §3, 2005: Ord. 1397 §1, 1997: Ord. 960 §2, 1975).
4.40.030 Tax on bingo, raffles and amusement games.
Subject to such exemptions as may be otherwise provided within this chapter:
(a) There is levied upon and shall be collected from and paid as hereinafter provided by every person conducting bingo and raffles in the city of Montesano, as authorized by this chapter, a tax in the amount of five percent of the gross receipts received from such bingo and raffles, remaining after the amount paid for or as prizes have been deducted.
(b) There is levied upon and shall be collected from and paid as hereafter provided by every person conducting amusement games in the city of Montesano, as authorized by this chapter, a tax in the amount of two percent of the gross receipts received from such amusement games remaining after the amount paid for or as prizes have been deducted, such amount being found to be the amount reasonably necessary to carry out such duties as may be imposed by state law in relation to such games.
(c) No tax shall be imposed under the authority of this section on bingo 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, as now enacted or hereinafter amended or succeeded, and when such organization:
(1) Has no paid operating or management personnel; and
(2) Has gross receipts from bingo or amusement games, or any combination thereof, not exceeding five thousand dollars per year less the amount awarded as cash or merchandise prizes; provided, that this exemption shall be interpreted pursuant to the requirements of RCW 9.46.110, as now enacted or hereinafter amended or succeeded. (Ord. 1397 §2, 1997: Ord. 1074 §1, 1977: Ord. 970 §1, 1974: Ord. 960 §3, 1974).
4.40.040 Tax on punchboards and pull tabs.
(a) Subject to the provisions of subsection (b), there is levied upon and shall be collected from and paid as hereinafter provided by every person utilizing punchboards and pull tabs as authorized by the laws of the state of Washington and permitted by this chapter, a tax in the amount of two and one-half percent of the gross receipts from such punchboards and pull tabs.
(b) As to a bona fide charitable or nonprofit organization recognized as such by the gambling commission of this state, there shall levied upon and shall be collected from and paid as hereinafter provided by every such group utilizing punchboards and pull tabs as authorized by the laws of the state of Washington and permitted by this chapter, a tax in the amount of two and one-half percent of the gross receipts received is from such punchboards and pull tabs after subtracting from the gross proceeds the amount awarded as cash or merchandise prizes.
No punchboard or pull tab may award, as a prize upon a winning number or symbol being drawn, the opportunity of taking a chance upon any other punchboard or pull tab.
All prizes for punchboards and pull tabs must be on display within the immediate area of the premises wherein any such punchboard or pull tab is located and upon a winning number or symbol being drawn, such prize must be immediately removed therefrom, or such omission shall be deemed a fraud for the purposes of this chapter. When any person wins over the sum in money or merchandise from any punchboard or pull tab which may be established by the Washington State Gambling Commission, every licensee shall keep a public record thereof for at least ninety days thereafter containing such information as the state gambling commission requires.
(c) As to bona fide charitable or nonprofit organizations, as defined within this chapter, which conduct raffles, no tax shall be imposed on the first ten thousand dollars of the gross receipts less the amount awarded as cash or merchandise prizes.
(d) All operations carried out under this chapter by a licensee shall fully comply with such laws of this state and such rules and regulations as may be promulgated by the Washington State Gambling Commission. (Ord. 1460 §2, 2003: Ord. 1398 §1, 1998: Ord. 1397 §3, 1997: Ord. 970 §2, 1974: Ord. 960 §4, 1974).
4.40.045 Tax on card games.
There is levied upon and shall be collected from and paid as provided in this section, by every person conducting a card game licensed or required to be licensed under RCW Chapter 9.46, a tax in the amount of five percent of the gross revenue from such games. (Ord. 1397 §4, 1997: Ord. 1090 §1, 1978: Ord. 1074 §2, 1977).
4.40.050 Payments.
Payment of tax imposed by this chapter shall be due and payable in quarterly installments and remittance therefor shall be made on or before the twenty-first day of the month next succeeding the end of the quarterly period in which the tax is accrued. The taxpayer shall swear or affirm that the information given on the tax return is full and true and correct and the taxpayer knows the same to be so. The tax return shall be filed within twenty-one days after the end of each quarter. Tax returns and tax payments shall be filed and made with the clerk-treasurer of the city of Montesano. Whenever the total tax for which any person is liable under this chapter does not exceed the sum of five dollars for any quarterly period, an annual return may be made if written request therefor is made to, and approval given by, the clerk-treasurer of the city of Montesano.
When any taxpayer commences to engage in business during any quarterly period, his first return or tax shall be based upon and cover the portion of the quarterly period during which he is engaged in the business.
The remittance of tax shall be made as herein provided and shall be accompanied by a return on a form provided and prescribed by the clerk-treasurer of the city of Montesano. (Ord. 960 §5, 1974).
4.40.060 Records to be kept.
It shall be the duty of each person taxed pursuant to this chapter to keep and enter in a proper book or set of records an account which will accurately reflect the amount of gross revenue received from bingo, raffles or amusement games, or the amount of gross revenue of the business in which punchboards and pull-tabs are displayed, whichever activity is taxable pursuant to this chapter. (Ord. 960 §6, 1974).
4.40.070 Over and under payment.
If the clerk-treasurer of the city of Montesano, upon investigation or upon checking returns, finds that the fee or tax paid on any tax return is more than the amount required, he shall refund the amount overpaid by warrant upon the current expense fund. If the official finds the fee or tax paid is less than required, he shall mail a statement to the person showing the balance due, and such person shall within three days, exclusive of Saturdays, Sundays and holidays, pay the amount shown thereon. All such taxes received shall be placed by the clerk-treasurer in the city's current expense fund. (Ord. 960 §7, 1974).
4.40.080 Failure to make a return.
If any person fails, neglects or refuses to make his return as required herein, the clerk-treasurer is authorized to determine the amount of the tax payable, and by mail to notify such taxpayer of the amount so determined. The amount so fixed shall, upon such mailing, become the tax and be immediately due and payable. (Ord. 960 §8, 1974).
4.40.090 Appeal to city council.
Any person aggrieved by the amount of the tax found by the clerk-treasurer to be required under the provisions of this chapter may appeal to the city council of Montesano from such findings by filing a written notice of appeal with the clerk-treasurer of the city of Montesano within five days of the time such taxpayer has been given notice of the amount due. The city council shall, as soon as practical, fix a time and place for hearing of such appeal, which shall not be more than three weeks after the filing of the notice of appeal, and shall cause a notice of the time and place thereof to be mailed to the appellant. At such hearing the taxpayer shall be entitled to be heard and to introduce evidence in his own behalf.
The city council shall thereupon ascertain the correct amount of the tax by resolution, and the clerk-treasurer shall immediately notify the appellant thereof by mail, which amount must be paid within three days after such notice is given.
The mayor of the city of Montesano may by subpoena require the attendance at such hearing of any person, and may also require any such person to produce any pertinent books and records. Any person served with such a subpoena shall appear at the time and place therein stated and produce the books and records required, if any, and shall testify truthfully under oath administered by the clerk of the city of Montesano as to the truth of any matter required of him pertinent to the appeal and it shall be unlawful for any such person to fail to appear pursuant to such subpoena, and unlawful for any such person to fail or refuse to produce the required books and records and testify truthfully under oath. (Ord. 960 §9, 1974).
4.40.100 City clerk-treasurer to make rules.
The clerk-treasurer of the city of Montesano shall have the power from time to time to adopt, publish and enforce rules and regulations not inconsistent with this chapter for the purpose of carrying out the provisions hereof, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 960 §10, 1974).
4.40.110 False returns unlawful.
It is unlawful for any person liable to tax hereunder to fail or refuse to make the returns as and when required or to pay the tax when due, or for any person to make a false or fraudulent return or any false statement or representation in, or in connection with any such return, or to aid or abet another in any attempt to evade payment of the tax, or any part thereof. (Ord. 960 §11, 1974).
4.40.120 Tax additional to others.
The taxes levied in this chapter shall be in addition to any other license fee or tax imposed by Grays Harbor County or by the state of Washington or any city within the state of Washington. (Ord. 960 §12, 1974).
4.40.130 County regulations.
The tax rates herein fixed for bingo, raffles, amusement games, punchboards and pull-tabs are those prescribed for all cities and towns in Grays Harbor County, Washington, by Ordinance No. 63 adopted by Grays Harbor County. (Ord. 970 §3, 1974: Ord. 960 §13, 1974).
4.40.140 Prorating taxes among municipalities.
Taxes on all bingo games and amusement games conducted in Grays Harbor County outside the corporate limits of cities and towns shall be paid to and returns therefor filed with the Grays Harbor County treasurer.
Taxes on the gross revenue of the business of establishments utilizing pull-tabs and/or punchboards shall be paid to Grays Harbor County treasurer on that portion of the gross revenue of the business derived from Grays Harbor County outside the corporate limits of cities and towns.
The tax percentage on raffles shall be applied to that portion of the tickets sold in Grays Harbor County outside the corporate limits of the cities or towns; provided, the tax return filed with the Grays Harbor County treasurer shall show: The price per ticket, the gross revenue derived from all ticket sales, and the amount of revenue derived from sale of tickets in each city, town and county in the state of Washington in which any revenue from sale of tickets was derived. (Ord. 960 §14, 1974).
4.40.150 Penalty for delinquent payments and late returns.
In addition to the taxes herein provided, the clerk-controller shall collect from each taxpayer the sum of one dollar for any tax return filed within ten days after the date such return is due, and shall collect a penalty of five dollars for each tax return filed more than ten days after the date the same was due. The filing of the tax return within thirty days after due date and payment therewith of all taxes and penalties due shall relieve taxpayer from any criminal liability for failure to file the return when due and/or failure to pay the tax when due. In addition to the foregoing penalties, the clerk-controller shall collect an additional penalty of ten percent of the amount of tax due for each month, or portion thereof, that the tax remains due and unpaid, commencing with the thirty-first day after due date of such tax. (Ord. 960 §15, 1974).
4.40.160 Violation--Penalties.
Any person violating any of the provisions of this chapter shall be subject to the following penalty or punishments:
(a) In the event of a first violation within any six-month period, be issued a notice of infraction and, upon a finding of committed, be subject to a penalty of up to two hundred fifty dollars;
(b) In the event of a second violation within any twelve-month period, be issued a notice of infraction and, upon a finding of committed, be subject to a penalty of up to five hundred dollars, one hundred fifty dollars of which may be neither suspended nor deferred;
(c) In the event of a third and subsequent violation within any twelve-month period, be subject to issuance of a criminal citation, and upon conviction, be guilty of a misdemeanor and, subject to punishment by a fine not to exceed one thousand dollars, two hundred fifty dollars of which shall be neither suspended nor deferred, by imprisonment in jail not to exceed ninety days, or by both such fine and imprisonment. (Ord. 1397 §5, 1997).
4.40.170 Construction.
This chapter shall be construed with the laws of the state of Washington, particularly Chapter 218, 1st Ex. Sess., Laws of 1973 as the same exists or may be amended, and the rules and regulations of the Gambling Commission of the state of Washington; in the event any of the terms of this chapter do not appear plain, definitions and usage contained in Chapter 218 shall be deemed to apply. In the event any section or portion of this chapter should for any reason be held by a court of competent jurisdiction to be invalid, the remaining portions not so held to be invalid shall remain in full force and effect. Unless clearly provided otherwise in this chapter, no taxable activity provided for herein shall be excused from such tax for the reason that license from the State Gambling Commission either has not been obtained or is not required by state law. (Ord. 960 §17, 1974).
4.40.180 Interpretation of provisions.
In recognition of the preemption of the regulation of gambling by the state of Washington, the provisions of this chapter shall be interpreted so as to be consistent with and in compliance with the provisions of Chapter 9.46 of the Revised Code of Washington, which, to the extent inconsistent with or supplementary to the provisions of this chapter, shall be deemed controlling and adopted by reference.
All operations carried out under this chapter by a licensee shall fully comply with such laws of this state and such rules and regulations as may be promulgated by the Washington State Gambling Commission. (Ord. 1397 §6, 1997).