Chapter 5.14
GAMBLING TAX
Sections:
5.14.020 Taxes imposed – Amounts.
5.14.030 Intention to engage in activity – Notice to be filed.
5.14.040 Exemptions – Charitable activities.
5.14.050 Computation and quarterly payments – Exceptions.
5.14.060 Administration and collection.
5.14.080 Record keeping requirements.
5.14.090 Overpayment or underpayment.
5.14.100 Failure to make timely payment – Penalty fees.
5.14.110 Failure to make return.
5.14.120 Tax additional to others.
5.14.130 Taxes, penalties and fees constitute debt to city.
5.14.140 Appeal procedure – City council authority.
5.14.150 Rules and regulations – Enforcement.
5.14.160 Limitation on right to recovery.
5.14.010 Definitions.
For the purposes of this chapter, the words and terms used shall have the same meaning as each has under the provisions of Chapter 9.46 RCW as now, or hereafter amended, and under the rules of the Washington State Gambling Commission, Chapter 230 WAC, unless otherwise specifically provided or the context in which they are used herein clearly indicates that they be given some other meaning. (Ord. 2143 § 1, 1984).
5.14.020 Taxes imposed – Amounts.
Subject to the provisions of MVMC 5.14.040, there is hereby levied upon all persons, associations and organizations conducting or operating within the jurisdiction of Mount Vernon any of the activities listed below a tax in the following amount, to be paid to the city:
A. Bingo. Upon any bingo activity, a tax computed at the rate of five percent of the gross receipts therefrom, less the amount of money paid in cash, and paid for merchandise actually awarded as prizes during the taxable period;
B. Raffles. Upon any raffle activity, a tax computed at the rate of five percent of the gross receipts therefrom, less the amount of money paid in cash, and paid for merchandise actually awarded as prizes during the taxable period;
C. Punch Boards or Pull-Tabs. Upon any punch board or pull-tab, computed at the rate of four percent of the gross receipts directly from the operation of the punch boards or pull-tabs themselves; provided, however, for a bona fide charitable or nonprofit organization the tax upon any punch board or pull-tab shall be based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes, and shall be at the rate of 10 percent;
D. Social Card Games. Upon any social card games, a tax computed at the rate of 10 percent of the gross revenue received from the conduct of such activity. (Ord. 2904 § 1, 1998; Ord. 2143 § 2, 1984).
5.14.030 Intention to engage in activity – Notice to be filed.
A. 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 as herein provided. The declaration of intent shall be on a form to be prescribed by the finance director, and shall be submitted with a copy of the license issued by the Washington State Gambling Commission. The filing shall be made not later than 10 days prior to conducting or operating a taxable activity, or 20 days after the effective date of the ordinance codified in this chapter if the activity is being conducted prior to its adoption. No fee shall be charged for such filing, which filing is not for the purpose of regulation of this activity but for the purposes of administration of this taxing chapter only.
B. Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 2143 § 8, 1984).
5.14.040 Exemptions – Charitable activities.
No tax shall be imposed under the authority of this chapter on bingo, raffles or amusement games when such activities, or any combination thereof, are conducted by any bona fide charitable or nonprofit organization, as defined in RCW 9.46.020 (3), which organization has not paid operating or management personnel and has grossed income from bingo, raffles or amusement games or any combination thereof not exceeding $5,000 per year less the amount paid for as prizes. (Ord. 2143 § 3, 1984).
5.14.050 Computation and quarterly payments – 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, together with return forms, shall be made to the finance director of the city on or before the last day of the month next succeeding the quarterly period in which the tax accrued; that is, on 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. Whenever any person, association or organization taxable hereunder 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 the business, or terminates the business, any tax due hereunder shall become due and payable, and such taxpayer shall, within 10 days thereafter, make a return and pay the tax due.
B. Whenever it appears to the office of the finance director of the city that the collection of taxes from any person, association or organization may be in jeopardy, the finance director, after not less than 14 days’ notice to the taxpayer, may require the taxpayer to remit taxes and returns at such shorter intervals as the finance director shall deem appropriate under the circumstances.
C. Whenever reports required by the State Gambling Commission under the provisions of Chapter 9.46 RCW are required on less than a quarterly basis, any person, association or organization taxable under this chapter shall report and pay taxes to the city on the same basis. (Ord. 2143 § 4, 1984).
5.14.060 Administration and collection.
A. Administration and collection of the various taxes imposed under this chapter shall be the responsibility of the finance director of the city. Remittance of the amount due shall be accompanied by a completed return form prescribed 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 the appropriate forms. Failure of any taxpayer to receive such a form shall not excuse such 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 office of the finance director during regular business hours.
C. In addition to the return form, a copy of the taxpayer’s quarterly report to the Washington 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. 2143 § 5, 1984).
5.14.070 Method of payment.
Taxes payable under this chapter shall be remitted to the office of 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 the quarterly report to the Washington 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. 2143 § 6, 1984).
5.14.080 Record keeping requirements.
A. Each person, association or organization engaging in an activity taxable under this chapter shall maintain records respecting that activity which truly, completely and accurately disclose all information necessary to determine the taxpayer’s tax liability during each tax base period. 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 Washington State Gambling Commission under Chapter 230-80 WAC, and the United States Internal Revenue Service, respecting taxation, shall be kept and maintained for the periods required by those agencies.
B. All books, records and other items required to be kept and maintained under this section shall be subject to, and immediately made available for inspection and audit at any reasonable time, with or without notice, at the place where such records are kept. Inspection shall be made upon demand by the finance director or his designee, at the place where such records are kept for the purpose of enforcing the provisions of this taxing chapter.
C. Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this section in this jurisdiction, so that the finance director may examine them conveniently, the taxpayer shall either:
1. Produce all of the required books, records or items within this jurisdiction for such inspection within seven days following a request of the finance director or his designee that he do so; or
2. Bear the actual cost of inspection by the finance director or his designee, at the location at which such books, records or items 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 such examination of the records. (Ord. 2143 § 9, 1984).
5.14.090 Overpayment or underpayment.
If, upon application by a taxpayer for a refund or for an audit of his records, or upon any examination of the returns or records of any taxpayer, it is determined by the finance director that within the past three years immediately preceding receipt by the finance director of the application by the taxpayer for a refund, or an audit, or, in the absence of such an application, within the three years immediately preceding the commencement by the finance director of such examination:
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 shall be credited to the taxpayer’s account, or shall be credited to the taxpayer at the taxpayer’s option. No refund or credit shall be allowed with respect to any excess amounts paid more than three years before the date of such application or examination;
B. A tax or other fee has been paid which is less than that properly due, or no tax or other fee has been 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. 2143 § 10, 1984).
5.14.100 Failure to make timely payment – Penalty fees.
A. If full payment of any tax or fee due under this chapter is not received by the finance director on or before the date due, there shall be added to the amount due a penalty fee, as follows:
1. One to 10 days late, five percent of tax due;
2. Eleven to 20 days late, seven and one half percent of tax due;
3. Twenty-one to 31 days late, 10 percent of tax due;
4. Thirty-two to 60 days late, 15 percent of tax due; but in no event shall the penalty amount be less than $5.00. In addition to this penalty, the city may charge the taxpayer interest in the amount of one and one-half percent of all taxes and fees due for each 30-day period, or portion thereof, that such amounts are past due.
B. Failure to make payment in full of all tax amounts, and penalties, within 60 days following the day the amount initially became due shall be both a civil and a criminal violation of this section. (Ord. 2143 § 7, 1984).
5.14.110 Failure to make return.
If any taxpayer fails, neglects or refuses to make and file his return as and when required under the provisions of this chapter, the finance director is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed. Taxpayer shall then be notified by mail of the amount which shall become immediately due and payable. (Ord. 2143 § 12, 1984).
5.14.120 Tax additional to others.
The tax levied in this chapter shall be in addition to any license fee or tax imposed or levied under any law or any other ordinance of the city, except as herein otherwise expressly provided. (Ord. 2143 § 13, 1984).
5.14.130 Taxes, penalties and fees constitute debt to city.
Any tax due and unpaid under this chapter, and all penalties or fees, shall constitute a debt to the city of Mount Vernon, 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. 2143 § 15, 1984).
5.14.140 Appeal procedure – City council authority.
Any taxpayer aggrieved by the amount of the tax found by the city finance director to be required under the provisions of this chapter, may appeal to the city council from such finding by filing a written notice of appeal with the city finance director within 14 days from the time such taxpayer was given notice of such amount. The city finance director shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall not be more than 30 days after the filing of notice of appeal, and he shall cause a notice of hearing and a notice of the time and place thereof to be mailed to the applicant. 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, which decision shall be set forth in the minutes of the meeting, and the city finance director shall immediately thereafter notify the appellant, by mail, which amount, if appellant is unsuccessful, must be paid within 10 days after such notice is given. (Ord. 2143 § 11, 1984).
5.14.150 Rules and regulations – Enforcement.
The finance director shall have the power, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with other superior law, 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. 2143 § 14, 1984).
5.14.160 Limitation on right to recovery.
The right of recovery by the city from the taxpayer for any tax provided under this chapter shall be outlawed after the expiration of three calendar years from the date said tax became due. The right of recovery against the city because of over-payment of tax by any taxpayer shall be outlawed after the expiration of three calendar years from the date such payment was made. (Ord. 2143 § 16, 1984).
5.14.170 Violation – Penalty.
A. 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 as provided in MVMC 1.20.010.
B. Any taxpayer who engages in or carries on any gambling activity subject to a tax hereunder without having complied with the provisions of this chapter shall be guilty of a violation of this chapter for each day during which the gambling activity is carried on. (Ord. 2143 § 17, 1984).