Chapter 3.120
GAMBLING TAX
Sections:
3.120.010 Gambling taxes levied.
3.120.020 Administration and collection of tax.
3.120.030 Filing of sworn statement.
3.120.040 Payment – Delinquency.
3.120.050 Violation – Penalty.
3.120.060 Financial records to be furnished.
3.120.070 Exclusion from charitable or nonprofit organization – Commercial stimulant defined.
3.120.010 Gambling taxes levied.
There is hereby levied upon all persons, associations and organizations who have been duly licensed by the Washington State Gambling Commission to conduct or operate:
A. Bingo and/or Raffles. These activities shall be taxed at a rate of two and one-half percent of the gross receipts received therefrom, less the amount awarded as cash or merchandise prizes.
B. Amusement Games. These activities shall be taxed at a rate of two percent of the gross revenue therefrom, less the amount awarded as prizes.
C. Commercial Operators – Punch Boards and/or Pull Tabs. These activities shall be taxed at a rate of five percent of the gross receipts therefrom.
D. Charitable or Nonprofit Operators – Punch Boards and/or Pull Tabs. These activities shall be taxed at a rate of 10 percent of the gross receipts therefrom, less the amount awarded as cash or merchandise prizes.
E. Social Card Games and/or Any Other Gambling Activity. These activities shall be phased in at a tax rate of:
1. Six percent – effective April 1, 2001, through December 31, 2001;
2. Eight percent – January 1, 2002;
3. Ten percent – January 1, 2003;
of the gross receipts therefrom to the extent provided below.
Provided, that no tax shall be imposed on bingo, raffles, or amusement games when such activities are conducted by the bona fide charitable or nonprofit organization as defined by this chapter, which organization has no paid operating or management personnel, and has gross annual receipts from bingo, raffles or amusement games, or any combination thereof, not exceeding $50,000, less the amount paid for as prizes, thereby constituting an exemption from taxation by this chapter. Should said gross annual receipts, less the amount awarded for prizes, exceed $50,000, the tax rates applicable herein shall apply to such excess; and provided further, that the tax provided for in subsection E of this section shall apply solely to those social card games and/or other gambling activity, including fund-raising events, conducted, held or operated as a commercial stimulant as defined in this chapter. Specifically, such tax shall apply only to such activities conducted in a public card room as defined in WAC 230-02-410. (Ord. 2495 § 1, 2008; Ord. 2442 § 1, 2007; Ord. 2267 § 1, 2001; Ord. 2256 § 1, 2000; Ord. 2222 § 1, 1999; Ord. 2166 § 1, 1997; Ord. 1384, 1981; Ord. 1011 § 1, 1975).
3.120.020 Administration and collection of tax.
The administration and collection of the tax imposed by this chapter shall be by the City Clerk and pursuant to the rules and regulations of the Washington State Gambling Commission. The City of Mountlake Terrace shall adopt and publish such rules and regulations as may be reasonably necessary to enable the collection of the tax imposed herein. (Ord. 1011 § 2, 1975).
3.120.030 Filing of sworn statement.
For any period covered by a state gambling license or any renewal thereof, a person, association or organization shall, on or before the last day of the month following the end of the quarterly period in which the tax accrued, file with the City Clerk a sworn statement, a form to be provided and prescribed by the City Clerk for the purpose of ascertaining the tax due for the preceding quarterly period. (Ord. 1384, 1981; Ord. 1011 § 3, 1975).
3.120.040 Payment – Delinquency.
The tax imposed by this chapter shall be due and payable in quarterly installments, and remittance therefor shall accompany each return and be made on or before the thirtieth day of the month next succeeding the quarterly period in which the tax accrued.
For each payment due, if such payment is not made by the due date therefor, there shall be added a penalty as follows:
A. First to 17 days’ delinquency: 10 percent with a minimum penalty of $2.00;
B. Seventeen days delinquent: 15 percent with a minimum penalty of $4.00. (Ord. 2267 § 2, 2001; Ord. 1384, 1981; Ord. 1011 § 4, 1975).
3.120.050 Violation – Penalty.
Any person who shall fail or refuse to pay the tax as herein before required, or who shall willfully disobey any rule or regulation promulgated by the City of Mountlake Terrace hereunder, shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than $250.00. Any such fine shall be in addition to the tax required. Officers, directors and managers of any organization conducting gambling activities shall be jointly and severally liable for the payment of said tax and for payment of said tax and for the payment of any fine imposed hereunder. (Ord. 1011 § 5, 1975).
3.120.060 Financial records to be furnished.
It shall be the responsibility of all officers, directors and managers of any organization conducting any gambling activities subject to taxation under this chapter to make available at all reasonable times such financial records as the City Manager, his authorized representative or law enforcement representative of the City of Mountlake Terrace may require in order to determine full compliance with this chapter. (Ord. 1011 § 6, 1975).
3.120.070 Exclusion from charitable or nonprofit organization – Commercial stimulant defined.
Any person, association or organization which pays its employees, including members, compensation other than is reasonable under the local prevailing wage scale shall be deemed paying compensation based in part or whole upon receipts relating to gambling activities authorized under Chapter 9.46 RCW, and shall not be a bona fide charitable or nonprofit organization for the purposes of this chapter.
For purposes of this chapter, an activity is operated as a commercial stimulant, only when it is an incidental activity operated in connection with, and incidental to, an established business, with a primary purpose of increasing the volume of sales of food or drink for consumption on that business premises, and as a corresponding definition of “commercial stimulant” as applied by the State Gambling Commission. (Ord. 1384, 1981; Ord. 1011 § 8, 1975).