Chapter 3.56
GAMBLING TAX1
Sections:
3.56.010 Exercise of revenue license power.
3.56.020 Administration and collection.
3.56.050 Tax rate on gambling activities.
3.56.060 Distribution of revenue.
3.56.070 Charitable or nonprofit organizations.
3.56.090 Delinquency – Penalty and interest.
3.56.100 Filing of notice of intention to engage in activity required.
3.56.120 Overpayment or underpayment.
3.56.130 Failure to make return – Determination of tax.
3.56.140 Tax additional to others.
3.56.150 Rules and regulations.
3.56.160 Taxes, penalties and fees constitute debt to municipality.
3.56.170 Limitation on the right to recovery.
3.56.190 Violation – Penalties.
3.56.010 Exercise of revenue license power.
The provisions of this chapter constitute an exercise of the power of the city to license for revenue and to tax certain gambling activities pursuant to Chapter 9.46 RCW. (Ord. 1875 § 1, 2019; Ord. 1074 § 1, 1996).
3.56.020 Administration and collection.
Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the finance director. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the finance director. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete. The finance director shall make forms available to the public in reasonable numbers in the finance director’s office during regular business hours.
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. 1875 § 1, 2019; Ord. 1074 § 2, 1996).
3.56.030 Definitions.
(1) “Amusement game” means a game played for entertainment in which the contestant actively participates, the outcome depends in a material degree upon the skill of the contestant and meets the requirements of RCW 9.46.0201, as it may be amended or replaced from time to time.
(2) “Chapter” means Chapter 3.56 OHMC, as it may be amended or replaced from time to time.
(3) “Punchboard” means a board with many holes filled with rolled-up printed slips to be punched out on payment of a nominal sum in an effort to obtain a slip that entitles the player to a designated prize and meets the requirements of RCW 9.46.0273, as it may be amended or replaced from time to time.
(4) “Pull-tabs” means a game in which the participant, on payment of a nominal sum, receives a paper tab from a dispenser which is pulled apart to reveal a designated prize and meets the requirements of RCW 9.46.0273, as it may be amended or replaced from time to time.
(5) “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 which meets the requirements of RCW 9.46.0205, as it may be amended or replaced from time to time.
(6) “Raffles” means a competition in which people obtain numbered tickets, each ticket having the chance of winning a prize. At a set time, the winners are drawn from a container holding a copy of every number and meets the requirements of RCW 9.46.0273.
(7) “Social card games” is a card game that constitutes gambling and is authorized by the commission under RCW 9.46.070, and meets the requirements of RCW 9.46.0282.
(8) “Bona fide charitable or nonprofit organization” shall have the meaning set forth in RCW 9.46.0209 as it now is in effect or as it may be amended or replaced from time to time.
(9) Other Definitions. For purposes of this chapter the words and terms used shall have the same meaning as each has under Chapter 9.46 RCW as it now is in effect or as it may be amended or replaced from time to time. (Ord. 1875 § 1, 2019; Ord. 1074 § 3, 1996).
3.56.040 Tax imposed.
There is levied and shall be collected from persons, associations and organizations who have been duly licensed by the Washington State Gambling Commission a tax on the act of conducting or operating any bingo game, punchboard or pull-tab activity, raffle or social card game. Such tax shall be levied at the rates set forth in this chapter on the gross receipts less amount awarded as cash or merchandise prizes of activities taxable under this chapter. (Ord. 1875 § 1, 2019; Ord. 1074 § 4, 1996).
3.56.050 Tax rate on gambling activities.
Upon every person engaging within this city in the act of conducting or operating the following gambling activities; as to such persons, the amount of tax with respect to such activities shall be equal to the gross receipts less amount awarded as cash or merchandise prizes from such activities multiplied by the following tax rates:
|
Activity Tax Rate |
|
|
(1) Bingo games |
5.0% |
|
(2) Sales of punchboards and pull-tabs |
1.0% |
|
(3) Raffles |
1.0% |
|
(4) Social card games |
1.0% |
(Ord. 1875 § 1, 2019; Ord. 1074 § 5, 1996).
3.56.060 Distribution of revenue.
All revenue from the tax levied on the gross receipts less amount awarded as cash or merchandise prizes from sales of punchboards, pull-tabs, raffles, social card games, and bingo pursuant to this chapter including any interest or other earnings thereon, shall, to the extent not required to enforce gambling laws in accordance with RCW 9.46.113, as it may be amended or replaced from time to time, be deposited to the general fund. (Ord. 1875 § 1, 2019; Ord. 1074 § 6, 1996).
3.56.070 Charitable or nonprofit organizations.
(1) The tax levied pursuant to this chapter is in lieu of any excise privilege or occupational tax based on gross receipts less amount awarded as cash or merchandise prizes with respect to activities taxed under this chapter. Nothing herein shall be construed to exempt persons taxable under the provisions of this chapter from any tax imposed under any other chapter of the Oak Harbor Municipal Code with respect to activities other than those expressly taxed under this chapter.
(2) The following shall apply to a bona fide charitable or nonprofit organization that has no paid operating or management personnel:
(a) Bingo. Any bona fide charitable or nonprofit organization conducting or operating bingo games shall be exempt from the tax imposed under this chapter;
(b) Punchboards and Pull-tabs. Any bona fide charitable or nonprofit organization conducting or operating punchboards and/or pull-tabs shall be exempt from the tax imposed under this chapter.
(c) Raffles. Any bona fide charitable or nonprofit organization conducting or operating raffles shall be exempt from the tax imposed under this chapter.
(d) Social Card Games. Any bona fide charitable or nonprofit organization conducting or operating social card games shall be exempt from the tax imposed under this chapter. (Ord. 1875 § 1, 2091).
3.56.080 Method of payment.
Taxes payable hereunder 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 Washington State Gambling Commission shall be filed in the office of the finance department after notation by that department upon the return of the amount actually received from the taxpayer. (Ord. 1875 § 1, 2019; Ord. 1074 § 9, 1996. Formerly 3.56.090).
3.56.090 Delinquency – Penalty and interest.
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, 10 percent of tax due;
(3) Twenty-one to 31 days late, 15 percent of tax due;
(4) Thirty-two to 60 days late, 20 percent of tax due; but in no event shall the penalty amount be less than $5.00. In addition to this penalty, the finance director may charge the taxpayer interest of 10 percent of all taxes and fees due for each 30-day period, or portion thereof, that said amounts are past due.
Failure to make payment in full of all tax amount, 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. 1875 § 1, 2019; Ord. 1074 § 10, 1996. Formerly 3.56.100).
3.56.100 Filing of notice of intention to engage in activity required.
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 department a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the finance director, together with a copy of the license issued therefor by the Washington 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 purpose of administration of this chapter only.
Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 1875 § 1, 2019; Ord. 1074 § 11, 1996. Formerly 3.56.110).
3.56.110 Records required.
(1) 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 hereunder during each base tax 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 230-08 WAC, and the United States Internal Revenue Service respecting taxation, shall be kept and maintained for the periods required by those agencies.
(2) 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 time, with or without notice, at the place where such records are kept, upon demand by the finance director or his/her designees, for the purpose of enforcing the provisions of this chapter.
(3) 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:
(a) Produce all of the required books, records or items within this jurisdiction for such inspection within 10 days following a request of the local official that taxpayer do so; or
(b) Bear the actual cost of inspection by the finance director or her/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 said examination of the records.
(4) A taxpayer who fails, neglects or refuses to produce such books and records either within or without this jurisdiction, 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.
(5) This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the city by the taxpayer unless taxpayer can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the finance director of the amount of tax so determined by jeopardy assessment, together with any penalty and/or interest, and the total of such amounts shall thereupon become immediately due and payable. (Ord. 1875 § 1, 2019; Ord. 1074 § 12, 1996. Formerly 3.56.120).
3.56.120 Overpayment or underpayment.
If upon audit an underpayment of tax has been made, the finance director may proceed to collect the tax due and any penalty. If an audit shows an overpayment a refund may be made by the city. Records shall be kept for three years and an audit may be made into the last three years’ business and a tax collected therefor. (Ord. 1875 § 1, 2019; Ord. 1074 § 13, 1996. Formerly 3.56.130).
3.56.130 Failure to make return – Determination of tax.
If any taxpayer fails, neglects or refuses to make and file his or her return as and 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 under the provisions of this chapter, and by mail notify such taxpayer 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. 1875 § 1, 2019; Ord. 1074 § 14, 1996. Formerly 3.56.140).
3.56.140 Tax additional to others.
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 of Oak Harbor, Washington, except as herein otherwise expressly provided. (Ord. 1875 § 1, 2019; Ord. 1074 § 15, 1996. Formerly 3.56.150).
3.56.150 Rules and regulations.
The finance director shall have the power, and it shall be his or her duty, from time to time, 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 hereof, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. 1875 § 1, 2019; Ord. 1074 § 16, 1996. Formerly 3.56.160).
3.56.160 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 may other debt in like amount which shall be in addition to all other existing remedies. (Ord. 1875 § 1, 2019; Ord. 1074 § 17, 1996. Formerly 3.56.170).
3.56.170 Limitation on the right to recovery.
The right of recovery by the city from the taxpayer for any tax provided hereunder shall be outlawed after the expiration of three calendar years from the date the tax became due. The right of recovery against the city because of overpayment of tax by any taxpayer shall be outlawed after the expiration of three calendar years from the date such payment was made. (Ord. 1875 § 1, 2019; Ord. 1074 § 18, 1996. Formerly 3.56.180).
3.56.180 Appeals.
Appeal from the decision of the finance director shall be in accordance with the provisions of Chapter 1.24 OHMC as now in effect or hereafter amended. (Ord. 1875 § 1, 2019; Ord. 1074 § 19, 1996. Formerly 3.56.190).
3.56.190 Violation – Penalties.
(1) Whoever, in any application for a license or in any book or record required to be maintained by the commission or in any report required to be submitted to the commission, shall make any false or misleading statement, or make any false or misleading entry or willfully fail to maintain or make any entry required to be maintained or made, or who willfully refuses to produce for inspection by the commission, or its designee, any book, record, or document required to be maintained or made by federal or state law, shall be guilty of a gross misdemeanor and upon conviction shall be punished by imprisonment in jail for not more than 364 days or by a fine of not more than $5,000, or both such fine and jail time.
(2) Any person who knowingly causes, aids, abets, or conspires with another to cause any person to violate any rule or regulation adopted pursuant to this chapter shall be guilty of a gross misdemeanor and upon conviction shall be punished by imprisonment in jail for not more than 364 days or by a fine of not more than $5,000, or both such fine and jail time.
(3) Violation or failure to comply with any other provisions of this chapter shall constitute a Class 1 infraction as defined in Chapter 1.28 OHMC. Each day of violation shall be a separate offense.
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 is guilty of a violation of this chapter for each day during which the gambling activity is carried on. (Ord. 1875 § 1, 2019; Ord. 1074 § 20, 1996. Formerly 3.56.200).
Prior legislation: Ords. 415, 490 and 1066.