Chapter 5.60
ADMISSION TAX
Sections:
5.60.040 Collection –Remittance.
5.60.050 Ticket to show amount of tax.
5.60.060 Transient business remittance.
5.60.070 Certificate of registration –Fee.
5.60.080 Penalty for late payment.
5.60.010 Definitions.
Admission Charge. In addition to its usual and ordinary meaning, “admission charge” includes, but is not limited in meaning to:
1. A charge made for season tickets or season subscriptions;
2. A cover charge, or a charge made for use of seats and tables reserved or otherwise, and other similar accommodations;
3. A charge made for food and refreshment in any place where free entertainment, recreation or amusement is provided; however, if the admission charge is separate from the food or refreshment; i.e., if one can be admitted without paying for them, then the admission tax would only apply to that fee actually paid for admission, and not to that fee or charge paid for food or refreshment. Otherwise, the entire amount shall be taxed. This shall also include cover charges to night clubs, lounges, private clubs, or similar places;
4. A charge made for rental or use of equipment or facilities for purposes of recreation or amusement; if the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge;
5. Automobile parking charges if the amount of the charge is determined according to the number of passengers in the automobile;
6. Required donations;
Charitable Organization. An organization exempt from federal taxation under § 501(c)(3) of the Internal Revenue Code.
City Sponsored Event. Any program or event provided by city of Mukilteo departments.
City Cosponsored Event. An event which benefits the community and for which the city of Mukilteo and another entity share jointly the expenses and responsibilities of providing the event. For an event to be cosponsored by the city, there must be a formal written agreement entered into between the city and the other entity or entities sponsoring the event in which the city agrees to the cosponsorship. A lease agreement from the city to another entity does not constitute cosponsorship unless the lease specifically provides that it does.
Nonprofit Organization. An organization, corporation, or association organized and operated for the advancement, appreciation, public exhibition or performance, preservation, study and/or teaching of the performing arts, visual arts, history, science, or a public charity providing social or human services or public education and which is currently recognized by the United States of America as exempt from federal income taxation pursuant to Section 501(c)(1) or (3) of the Internal Revenue Code, as now existing or hereafter amended, and registered under Chapter 24.03 RCW.
Person. Any individual, receiver, assignee, firm, co-partnership, joint venture, corporation, company, joint stock association, society, any group of individuals acting as a unit, whether mutual, cooperative or fraternal, or any nonprofit or not-for-profit corporation or organization as the term “nonprofit” is defined under the statutes of the state of Washington, RCW 82.04.365,.366.
Place. A place includes, but is not limited to, movie theaters, museums, dance halls, auditoriums, restaurants, night clubs, lounges, private clubs, athletic pavilions and fields, baseball and athletic parks, swimming pools, golf courses, circuses, or carnivals.
Religious Organization. An organization engaged in the practice of a particular faith or central beliefs.
Ticket Sales Outlet. The location of any agency, person, group, etc. that is in charge of distributing, selling, or otherwise managing the sale of tickets and are collecting the fees for such tickets to any of the described events.
Transient. Temporary, short-lived, nonpermanent or non-lasting. (Ord. 1003 § 1, 1999)
5.60.020 Tax levied.
There is levied and imposed upon every person, without regard to age, who pays an admission charge to any place as described in Section 5.60.010, a tax of five percent of the price paid for admission. (Ord. 1432 § 1, 2019: Ord. 1003 § 2, 1999)
5.60.030 Exemptions.
The following activities are exempt for the provisions of this chapter:
A. Activities of elementary and secondary schools;
B. Activities of churches and religious organizations;
C. Government activities;
D. City-sponsored and city-cosponsored events; provided, that for-profit activities conducted in conjunction with such an event shall not be exempt;
E. Activities of nonprofit organizations, as defined in Section 5.60.010; provided, that all of the following requirements are met:
1. The nonprofit organization:
a. Publicly sponsors and, through its members, representatives or personnel, promotes and publicizes the event; or
b. Publicly sponsors 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 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 event for which the exemption is claimed cannot be one for which a nonprofit organization lends its name as an endorsement to an ineligible person or organization for the purpose of invoking the exemption.
3. The nonprofit organization must be registered with the finance director’s office as provided in Section 5.60.070 and must provide a copy of its incorporation approval by the state of Washington and any other proof deemed reasonably necessary by the finance director to verify that the organization meets the definition of nonprofit organization established by this chapter. (Ord. 1003 § 3, 1999)
5.60.040 Collection—Remittance.
A. The person, firm or corporation receiving payment for admissions on which a tax is levied under this chapter shall collect the amount of the tax imposed from the person making payment for admission, shall hold said tax in trust until the same is remitted to the city finance director as herein provided, and shall be personally liable for the amount of such tax if the same is not collected and remitted as herein provided.
B. The tax imposed by this chapter shall be reported and remitted to the city finance director monthly on or before the thirtieth day of the month next succeeding the month of the year in which the tax is collected by the person, firm or corporation collecting the tax. The monthly returns shall be made on forms provided by the city finance director, separately stating the number of admissions sold, the price of each admission, the amount of tax, and such other information as the city finance director may specify. Each return shall be signed and verified by the person making the return.
C. The books, records and accounts of any person, firm or corporation collecting the tax herein levied shall, as to admission charges and tax collections, be at all reasonable times subject to examination and audit by the city finance director. (Ord. 1018 § 1, 2000; Ord. 1003 § 4, 1999)
5.60.050 Ticket to show amount of tax.
Every admission ticket or card shall separately state and set forth, indelibly printed or written, the price, exclusive of taxes, for which admission is sold and the tax levied under this chapter. (Ord. 1003 § 5, 1999)
5.60.060 Transient business remittance.
Whenever any activity which is subject to the tax levied in Section 5.60.020 is of a temporary or transitory nature, of which the city shall be the judge, the city may require the return and remittance of the admissions tax immediately upon its collection or at the conclusion of said activities, whichever the city deems appropriate. An application for a certificate of registration shall be required as noted in Section 5.60.070. For temporary or transient events, the owner, lessee or custodian shall be responsible for payment of this tax if the person conducting the event fails to do so. Failure to comply with any requirement of the city as to reporting and remittance of the tax as required shall be a violation of this chapter. (Ord. 1003 § 6, 1999)
5.60.070 Certificate of registration—Fee.
Every person, firm or corporation, prior to conducting or operating any event or place of entrance, to which an admission charge is made, shall on a form prescribed by the city complete a certificate of registration and file the same with the city. The certificate of registration shall continue to be valid until December 31st of the same year in which it was issued. A list of admission charges for all events must accompany the certificate of registration. The application for certificate of registration, or a copy of it, shall be posted in the ticket office or box office where tickets or admission are sold. (Ord. 1003 § 7, 1999)
5.60.080 Penalty for late payment.
For each payment due, if such payment is not made by five p.m. on the due date, there shall be added penalties as follows:
A. One to thirty days’ delinquency, ten percent with a minimum penalty of ten dollars;
B. After thirty days’ delinquency, in addition to the penalty required in subsection A of this section, there is assessed and shall be collected an additional two percent penalty for each month or part of a month of delinquency. Failure to pay tax is a violation of this chapter and may be punished as such in addition to the late fees imposed. (Ord. 1003 § 8, 1999)
5.60.090 Penalty.
Any person violating any provision of this chapter shall be guilty of a misdemeanor and shall be punished as set forth in the general penalty ordinance. (Ord. 1003 § 9, 1999)