Chapter 5.22
ADMISSIONS TAX
Sections:
5.22.060 Accounting for admission.
5.22.070 Collection and payment.
5.22.080 Penalty for late payment.
5.22.090 Registration required.
5.22.100 Successor to business.
5.22.120 Rules and regulations adopted by finance director.
5.22.010 Levied.
The city does levy and fix an admissions tax and provide for the collection thereof pursuant to this chapter. (Ord. 1449 § 1, 1989).
5.22.020 Jurisdiction.
The admissions tax enacted by this chapter shall be imposed in the city. (Ord. 1449 § 14, 1989).
5.22.030 Definitions.
For purposes of this chapter, words and phrases shall have the following meanings:
(1) “Admissions charge,” in addition to its usual and ordinary meaning, includes but shall not be limited to a charge made for use of seats and tables, reserved or otherwise, and other similar accommodations.
(2) “City” means the city of Port Orchard, state of Washington.
(3) “Finance director” means the city finance director’s office.
(4) “Nonprofit organization” means any organization organized and operated for charitable, educational or other purposes, which is exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1954, as amended.
(5) “Person” means any individual, receiver, assignee, firm, partnership, joint stock company, association, society, corporation or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise.
(6) “Place” means and includes, but is not restricted to, theaters, dancehalls, amphitheaters, auditoriums, stadiums, athletic pavilions and fields, baseball and athletic parks, circuses, sideshows, swimming pools, outdoor amusement parks and carnivals.
(7) “Start-up business” means an activity, occupation, pursuit or profession located and/or engaged in within the city with the object of gain, benefit or advantage to another person, directly or indirectly, whether part-time or full-time, and which has not operated for the prior 12 months or more at any location within the city. A change in ownership of a business shall not create a new start-up business unless the business has not operated for the prior 12 months or more. (Ord. 017-23 § 4 (Exh. A); Ord. 049-07 § 1; Ord. 1449 § 2, 1989).
5.22.040 Imposition and use.
(1) There is levied and imposed upon any person (including children, without regard to age) who pays an admission charge to any place, including persons who are admitted at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same or similar privileges or accommodations, a tax which shall be in the amount of:
(a) For start-up businesses during the first 12 months of operation, one percent of the admission charge.
(b) For all other persons, unless otherwise exempt, five percent of the admission charge.
(2) No admissions tax shall be levied on any person who is admitted free of charge and from whom no compensating payment is obtained. The tax on reduced admission charges shall be charged on such reduced charge and not on the regular admission charge.
(3) The revenue received by the city from the admissions tax shall be dedicated to the funding of recreational programs, activities, or capital projects within the city. (Ord. 049-07 § 2; Ord. 039-07 § 1; Ord. 1449 § 3, 1989).
5.22.050 Exemptions.
(1) All participatory athletic or sporting events are exempted from this chapter. This exemption shall apply but is not limited to participants of archery, batting cages, billiards, bowling, golf and swimming. This exemption does not apply to spectators at athletic or sporting events who pay an admissions charge.
(2) Any nonprofit organization that promotes and produces its own public performance and collects an admission charge to attend is exempt from collecting an admissions tax from persons paying the admission charge. Persons attending these public performances are exempt from paying an admissions tax.
(3) The admissions tax imposed by this chapter shall not apply to any person paying an admission charge to any event sponsored or conducted by an elementary or secondary school. For purposes of this chapter, “elementary” or “secondary” schools means schools enrolling students in grades kindergarten through 12. (Ord. 1449 § 4, 1989).
5.22.060 Accounting for admission.
(1) Whenever a charge is made for admission to any place, a turnstile or other counting device which will accurately count the number of paid admissions or a serially numbered or reserved seat ticket may be furnished to the person paying such charge. The established admissions price, admissions tax imposed by this chapter and total price at which every such admission ticket or card is sold may be printed or written on the face or back of that part of the ticket which is to be taken up by the management of the place to which admission is gained. The admissions tax due shall be based on the established price for admittance.
(2) For purposes of greater ease and economy in administration, collection and enforcement of the admissions tax, a person may opt to submit a copy of their Washington Excise Tax Report as proof of admission income. (Ord. 1449 § 5, 1989).
5.22.070 Collection and payment.
(1) Any person, including any municipal or quasi-municipal corporation, who receives any payment for admissions on which a tax is levied under this chapter shall collect the amount of the tax imposed from the person making the admission payment and shall remit the same as provided for in this section. The tax imposed under this chapter shall be deemed to be held in trust by that person required to collect the tax until it is paid to the city as herein provided. Any person required to collect the tax imposed under this chapter who fails to collect the same or, having collected the same, fails to remit the same to the city in the manner prescribed in this chapter, whether such failure be the result of their own act or the result of acts or conditions beyond their control, shall nevertheless be personally liable to the city for the amount of such tax, and shall, unless remittance is made as required in this section, be guilty of a violation of this chapter. The tax imposed shall be collected at the time admission charge is paid by the person seeking admission to any place and shall be reported and remitted by the person receiving the tax to the city finance director monthly on or before the fifteenth day of the following month if the amount collected exceeds $100.00 collected in one month. Amounts less than $100.00 collected in one month may be remitted quarterly as follows:
(a) January, February, March to be received by April 15th.
(b) April, May, June to be received by July 15th.
(c) July, August, September to be received by October 15th.
(d) October, November, December to be received by January 15th.
The finance director may extend the time for making and filing the return and remittance of the tax for a period not to exceed 30 days. Payment or remittance of the tax collected may be made by check, unless payment or remittance is otherwise required by the finance director. Checks should be made payable to the city.
Payment by check shall not relieve the person collecting the tax from liability for payment and remittance of the tax unless the check is honored and in the full and correct amount. Any person receiving any payment for admissions shall make out a return upon such forms providing information as required by the finance director.
Whenever any theater, circus, show, exhibition, entertainment or amusement makes an admission charge which is subject to the tax levied in this chapter, and the same is of a transitory or temporary nature, of which the finance director shall be the judge, the finance director shall require the report and remittance of the admissions tax immediately upon the collection of the tax at the conclusion of the performance or exhibition, or at the conclusion of a series of performances or exhibitions, or at such other time as the finance director shall determine. The finance director may require the applicant to deposit a sum of money or bond in advance of any performance, show or amusement. This deposit or bond shall be returned upon faithful compliance with the provisions of this chapter.
(2) Failure to comply with any requirements of the finance director as to reporting and remitting the tax shall be a violation of this chapter.
(3) The books, records and accounts of every person collecting a tax levied in this chapter shall, as to admission charges and tax collections, be subject to examination and audit by the finance director at all reasonable times. (Ord. 017-23 §§ 1, 4 (Exh. A); Ord. 049-07 § 3; Ord. 039-07 § 2; Ord. 1449 § 6, 1989).
5.22.080 Penalty for late payment.
(1) If payment of any tax due under this chapter is not received by the finance director by the last day of the month in which the tax was due, there shall be added to such tax a penalty of 15 percent of the tax due.
(2) The finance director shall notify the taxpayer by mail of the amount of any penalties so added or assessed and these shall become due and payable within 10 days from the date of such notice.
(3) In addition to this penalty, the finance director may charge the taxpayer interest of one percent of all taxes due for each 30-day period or portion thereof that such amounts are past due.
(4) Failure to make payment in full of all tax amounts and penalties within 60 days following the day the tax amount initially became due shall be a civil and/or criminal violation of this section. (Ord. 017-23 § 4 (Exh. A); Ord. 1449 § 7, 1989).
5.22.090 Registration required.
Any person conducting or operating any activity for which an admission charge is made shall register with the finance director. (Ord. 017-23 § 4 (Exh. A); Ord. 1449 § 8, 1989).
5.22.100 Successor to business.
When any person required to pay a tax under this chapter shall quit business or otherwise dispose of their business, any admissions tax payable shall immediately become due and payable, and if such tax is not paid by such person within 10 days from the date of such sale, exchange or disposal of the business, the purchaser or successor shall also become liable for the payment of the full amount of such tax plus accrued penalties. (Ord. 017-23 § 1 (Exh. A); Ord. 1449 § 9, 1989).
5.22.110 Recordkeeping.
It shall be the duty of every person liable for any tax imposed by this chapter to keep and preserve for a period of five years suitable records as may be necessary to determine the amount of any tax for which they may be liable under the provisions of this chapter. (Ord. 017-23 § 1 (Exh. A); Ord. 1449 § 10, 1989).
5.22.120 Rules and regulations adopted by finance director.
The finance director shall have the power to adopt rules and regulations not inconsistent with the terms of this chapter for carrying out and enforcing the payment, collection and remittance of the tax levied by this chapter and a copy of the rules and regulations shall be on file and available for public examination at the finance director’s office. Failure or refusal to comply with any such rules and regulations shall be deemed a violation of this chapter. (Ord. 017-23 § 4 (Exh. A); Ord. 1449 § 11, 1989).
5.22.130 Violation – Penalty.
In addition to civil penalties that may be imposed, it is a misdemeanor to violate any of the provisions of this chapter. Each person who violates or fails to comply with any of the provisions of this chapter, unless otherwise specified, shall be subject to criminal penalties of a fine not to exceed $500.00. (Ord. 1449 § 13, 1989).