Chapter 3.36
GAMBLING TAX

Sections:

3.36.010  Declaration of policy.

3.36.020  Bingo, raffles, amusement games and social card games.

3.36.030  Punchboards and pull-tabs.

3.36.040  Payment—Schedule and procedure.

3.36.050  Tax records to be kept.

3.36.060  Underpayment.

3.36.070  Failure to make a return.

3.36.080  Appeal to city council—Hearing.

3.36.090  False returns unlawful.

3.36.100  Taxes in addition to license fees.

3.36.110  Violation—Penalty.

3.36.120  Tax returns—Penalty schedule.

3.36.010  Declaration of policy.

It is declared to be the policy of the city to authorize bingo, raffles, amusement games, pull tabs and punchboards as defined by state law, and to tax all such gambling activities pursuant to state law and certain rules and regulations of the city as are set forth in this chapter. (Ord. 141 § 1, 1974)

3.36.020  Bingo, raffles, amusement games and social card games.

A. There is levied upon and shall be collected from and paid as provided in this chapter, by every person conducting bingo, raffles and amusement games as authorized pursuant to state law, a tax in the amount of five percent of the gross revenue received from such bingo, raffles and amusement games, less the amount paid as prizes.

B. There is levied upon and shall be collected from and paid as provided in this chapter, by every person conducting social card games as authorized pursuant to state law, a tax in the amount of seven and one-half percent effective January 1, 1992 and ten percent effective January 1, 1993, of the gross revenue received from such social card games, less the amounts paid as prizes.

(Ord. 523 § 1, 1991: Ord. 183 § 1, 1976: Ord. 141 § 2, 1974)

3.36.030  Punchboards and pull-tabs.

It is levied upon and shall be collected from and paid as hereinafter provided by every person utilizing punchboards and pull-tabs as authorized pursuant to state law, a tax in the amount of two and one-half percent effective January 1, 1992 and three percent effective January 1, 1993, on the gross revenue of punchboards and pull-tabs. (Ord. 523 § 2, 1991: Ord. 141 § 3, 1974)

3.36.040  Payment—Schedule and procedure.

A. The 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 accrued. The taxpayer shall be required to swear or affirm that the information given on the tax return is full and true and the taxpayer knows the same to be so.

B. Whenever the total tax for which any person is liable under this chapter does not exceed the sum of three dollars for any quarterly pay period, an annual return may be made upon written request and subject to approval of the city manager.

C. Whenever a 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 business.

D. The remittance shall be made as herein provided and shall be accompanied by a return on a form provided and prescribed by the city manager.

(Ord. 141 § 4, 1974)

3.36.050  Tax 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 books or records an account which will accurately reflect the amount of the gross revenue received from bingo, raffles, amusement games, punchboards and pull-tabs. All such books and records shall be open to inspection by the city manager at all times. (Ord. 141 § 5, 1974)

3.36.060  Underpayment.

If the city manager upon investigation or upon checking returns finds that the tax paid is less than required, he shall mail by certified mail, return receipt requested, a statement to the person showing the balance due, which balance shall be paid within three days of the receipt of said statement. (Ord. 141 § 6, 1974)

3.36.070  Failure to make a return.

If any person fails, neglects or refuses to make his return as required in this chapter, the city manager is authorized to determine the amount of the tax payable, and by certified mail, return receipt requested, to notify such taxpayer of the amount so determined. The amount shall be immediately due and payable. (Ord. 141 § 7, 1974)

3.36.080  Appeal to city council—Hearing.

A. Any person aggrieved by the amount of the tax or fee found by the city manager to be required under the provisions of this chapter may appeal to the city council from such findings by filing a written notice of appeal with the city clerk/treasurer within ten days of the time such taxpayer was given notice of such an amount. Council shall, as soon as practical, fix a time and place for a hearing of such appeal, which time shall be not more than two weeks after the filing of the notice of appeal, and shall cause a notice of the time and place thereof to be mailed by certified mail, return receipt requested, 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 thereon ascertain the correct amount of the fee or tax by resolution and the city manager shall immediately notify the appellant thereof by certified mail, return receipt requested, which amount must be paid within three days after such notice is given.

B. The city manager may by subpoena require the attendance thereat of any person and may also require him 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 chairman in charge of the hearing on appeal as to any matter required of him pertinent to the appeal and it shall be unlawful for him to fail or refuse so to do.

(Ord. 141 § 8, 1974)

3.36.090  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 due 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. 141 § 9, 1974)

3.36.100  Taxes in addition to license fees.

The taxes levied in this chapter shall be additional to any license fee or tax imposed or levied under any law or any other ordinances of the city. (Ord. 141 § 10, 1974)

3.36.110  Violation—Penalty.

Any person violating or failing to comply with any of the provisions of this chapter shall be guilty of a Class C offense as defined in Title 7 of this code. (Ord. 281 § 3 (part), 1979: Ord. 141 § 11, 1974)

3.36.120  Tax returns—Penalty schedule.

In the event any tax is not received by the twenty-first day following the end of the period for which it is due, a penalty shall be assessed as follows:

In addition, all delinquent payments including penalties will be assessed an interest charge at the highest rate authorized by law until paid in full. (Ord. 529 § 1, 1992: Ord. 141 § 12, 1974)