Chapter 4.20
GAMBLING ACTIVITIES TAX
Sections:
4.20.030 Quarterly computation and payment—Exceptions.
4.20.040 Administration and collection.
4.20.070 Notice of intention to engage in activity to be filed.
4.20.090 Overpayment or underpayment.
4.20.100 Failure to make return.
4.20.110 Tax additional to others.
4.20.120 Rules and regulations promulgation.
4.20.130 Taxes, penalties and fees constitute debt.
4.20.140 Limitation on right of recovery.
4.20.150 Penalty for violation.
4.20.010 Definitions.
For the purposes of this chapter, the words and terms used shall have the same meaning as each has under Chapter 9.46 RCW, each as amended, and under the rules of the Washington State Gambling Commission, WAC Title 230, unless otherwise specifically provided or the context in which they are used herein clearly indicates that they be given some other meaning. (Ord. 484 § 1, 1975).
4.20.020 Tax rates.
There is levied upon all persons, associations and organizations conducting or operating within this jurisdiction any of the activities listed below a tax in the following amounts to be paid to the city of Othello, Washington:
(a) Bingo and raffles, in the amount of gross receipts therefrom, less the amount of money paid in cash, and paid for merchandise, actually awarded as prizes during the taxable period, multiplied by the rate of five percent, except bingo and raffles conducted by any bona fide charitable or nonprofit organizations are taxed as provided herein.
(b) Amusement games and golf sweepstakes, in the amount of gross receipts therefrom, less the amount of money paid in cash, and paid for merchandise, actually awarded as prizes during the taxable period, multiplied by the rate of two percent, except amusement games and golf sweepstakes conducted by any bona fide charitable or nonprofit organizations as defined in Chapter 9.46 RCW are taxed as provided herein.
(c) Bona Fide Charitable or Nonprofit Organization Rates and Exemptions.
(1) No tax is imposed under this chapter on bingo games when such activities are conducted by any bona fide charitable or nonprofit organization as defined in Chapter 9.46 RCW, which organization has no paid operating or management personnel and has gross receipts from bingo games not exceeding five thousand dollars per year, less the amount awarded as cash or merchandise prizes. The tax on nonexempt receipts is at the rate of five percent.
(2) No tax is imposed under this chapter on amusement games when such activities are conducted by any bona fide charitable or nonprofit organization as defined in Chapter 9.46 RCW, which organization has no paid operating or management personnel and has gross receipts from amusement games not exceeding five thousand dollars per year, less the amount awarded as cash or merchandise prizes. The tax on nonexempt receipts is at the rate of two percent.
(3) No tax is imposed on the first ten thousand dollars of gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by any bona fide charitable or nonprofit organization as defined in Chapter 9.46 RCW. The tax on nonexempt receipts is at the rate of five percent.
(4) Punch boards and pull-tabs for bona fide charitable or nonprofit organization as defined in RCW Chapter 9.46 is on the gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes at the rate of seven and one-half percent.
(5) Golf sweepstakes conducted by any bona fide charitable or nonprofit organization as defined in Chapter 9.46 RCW are exempt from taxation.
(d) Any punch boards or pull-tabs, in the amount of two and one-half percent of the gross receipts collected directly from the operation of the punch boards or pull-tabs themselves, except punch boards and pull-tabs operated by any bona fide charitable or nonprofit organizations are taxed as provided herein.
(e) Taxation of social card games is at the rate of twenty percent of the gross revenue from such games. (Ord. 1046 § 1, 1999: Ord. 1017 § 1 (part), 1998: Ord. 765, 1987; Ord. 760 § 1, 1987; Ord. 754 § 1, 1986; Ord. 528 § 1, 1977; Ord. 484 § 2, 1975).
4.20.030 Quarterly computation and payment—Exceptions.
Each of the various taxes imposed by the ordinance codified in 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 therefor, together with return forms, shall be made to the city of Othello, Washington, 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) Except as provided in subsection (b) of this section, 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 twenty consecutive days, or quits business, sells out, or otherwise disposes of its business, or terminates the business, any tax due hereunder shall become due and payable, and such taxpayer shall, within ten days thereafter, make a return and pay the tax due.
(b) It is recognized that some bona fide charitable or bona fide nonprofit organization taxpayers will be conducting or operating taxable activities only upon an occasional and random basis. Except as provided in subsection (c) of this section, when such a taxpayer conducts only one taxable activity during any calendar quarter, the duration of each such activity does not exceed ninety consecutive calendar days, and the gross receipts therefrom do not exceed one thousand dollars per quarter, that taxpayer need not remit the tax due with a return therefor until, on or before January 31st of the year following that year in which the activity took place. Such returns shall be made upon a special form to be supplied by the city finance officer or the State Gambling Commission.
(c) Whenever it appears to the city finance officer that the collection of taxes from any person, association or organization may be in jeopardy, the city finance officer, after not less than thirty days’ notice to the taxpayer, is authorized to require that taxpayer to remit taxes and returns at such shorter intervals than quarterly or annually, as the city finance officer shall deem appropriate under the circumstances. (Ord. 1401 § 2 (part), 2014: Ord. 484 § 3, 1975).
4.20.040 Administration and collection.
Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the city finance officer. Remittance of the amount due shall be accompanied by a completed return form prescribed by the city finance officer. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.
The city finance officer is authorized, but not required, to mail to taxpayers forms for returns. Failure of the taxpayer to receive such a form shall not excuse a taxpayer from making the return and timely paying all taxes due. The city finance officer shall make forms available to the public in reasonable numbers in the Othello City Hall during regular business hours. (Ord. 1401 § 2 (part), 2014: Ord. 484 § 4, 1975).
4.20.050 Method of payment.
Taxes payable hereunder shall be remitted to the city treasurer of Othello 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 city treasurer 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 Othello city treasurer after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 484 § 5, 1975).
4.20.060 Payment failure.
If full payment of any tax or fee due under this chapter is not received by the city finance officer on or before the date due, there shall be added to the amount due a penalty fee as follows:
|
Days Late |
Percent of Tax Due |
|
1—10 |
5 |
|
11—20 |
10 |
|
21—31 |
15 |
|
32—60 |
20 |
But in no event shall the penalty amount be less than five dollars. In addition to this penalty, the city finance officer may charge the taxpayer interest of one percent per month, simple interest, of all taxes and fees due for each thirty-day period, or portion thereof, that said amounts are past due.
Failure to make payment in full of all tax amounts, and penalties, within sixty days following the day the tax amount initially became due shall be a criminal violation of this section. (Ord. 1401 § 2 (part), 2014: Ord. 484 § 6, 1975).
4.20.070 Notice of intention to engage in activity to be filed.
In order that the city of Othello may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the city treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the city treasurer, together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than five 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 purposes of administration of this taxing chapter only.
Failure to file timely shall not excuse any person, association or organization from any tax liability. (Ord. 484 § 7, 1975).
4.20.080 Records required.
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.
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 Othello city finance officer or their designees, for the purpose of enforcing the provisions of this taxing chapter.
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 city finance officer 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 five days following a request of the city finance officer that they do so; or
(b) Bear the actual cost of inspection by the city finance officer or her 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 city finance officer 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.
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 jeopardy fee or tax assessment by the city finance officer.
This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the city of Othello by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the city finance officer 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. 1401 § 2 (part), 2014: Ord. 484 § 8, 1975).
4.20.090 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 city finance officer that within three years immediately preceding receipt by the city treasurer 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 city finance officer 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 of Othello within such period of three years 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 the overpayment 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 city finance officer 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, and criminal, if the taxpayer fails to make payment in full within ten calendar days of such mailing. (Ord. 1401 § 2 (part), 2014: Ord. 484 § 9, 1975).
4.20.100 Failure to make return.
If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the city treasurer 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 to 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. 484 § 10, 1975).
4.20.110 Tax additional to others.
The tax herein levied shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the city of Othello, Washington, except as herein otherwise expressly provided. (Ord. 484 § 11, 1975).
4.20.120 Rules and regulations promulgation.
The Othello city council, or a committee by it appointed, shall have the power, and it shall be its 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. 484 § 12, 1975).
4.20.130 Taxes, penalties and fees constitute debt.
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city of Othello, 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. 484 § 13, 1975).
4.20.140 Limitation on right of recovery.
The right of recovery by the city of Othello from the taxpayer for any tax provided hereunder shall be outlawed after the expiration of three calendar years from the date said tax became due. The right of recovery against the city of Othello 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. 484 § 14, 1975).
4.20.150 Penalty for violation.
Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the Othello city council pursuant thereto shall be deemed to have committed an infraction and be subject to a C-1 penalty.
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. 1017 § 1 (part), 1998: Ord. 484 § 15, 1975).