Chapter 3.25
GAMBLING TAX
Sections:
3.25.020 Imposition of tax on gambling activities.
3.25.040 Payment of tax on gambling activities.
3.25.060 Administration and collection.
3.25.070 Declaration of intent – Filing prior to conducting gambling activities.
3.25.080 Records required to be maintained – Inspection by the City.
3.25.090 Taxes, penalties, service charges, and fees constitute debt to municipality.
3.25.010 Definitions.
A. For the purposes of this chapter, the words and terms used herein shall have the same meaning given to each pursuant to Chapter 9.46 RCW, as same exist or may from time to time be amended; and as set forth under the rules of the Washington State Gambling Commission, WAC Title 230, as the same exists or may hereafter be amended, unless otherwise specifically provided herein.
B. “Director” means the Director of Finance and Information Systems or designee. (Ord. 21-1014 § 1; Ord. 18-1033 § 2 (part))
3.25.020 Imposition of tax on gambling activities.
In accordance with RCW 9.46.110, there is hereby imposed a tax upon all persons, associations, and organizations, at the rates set forth below, upon the following gambling activities conducted in the City:
A. For punch boards and pull-tabs for commercial stimulant operators, a tax rate of five percent (5%) of the gross receipts from the operation of such games. For punch boards and pull-tabs for bona fide charitable or nonprofit organizations, a tax rate of ten percent (10%) of the gross receipts from the operation of such games, less the amount awarded as cash or merchandise prizes.
B. For bingo games and raffles, a tax rate of five percent (5%) of the gross receipts, less the amount paid as cash or merchandise prizes, received from such bingo games and raffles.
C. For amusement games, two percent (2%) of the gross receipts from the amusement game, less the amount awarded as prizes.
D. For social card games, the tax imposed will be based upon the number of social card game establishments in the City, as follows:
• For one (1) to five (5) social card game establishments, the tax imposed shall be at eleven percent (11%) of the gross receipts therefrom.
• For six (6) social card game establishments, the tax imposed shall be at fifteen percent (15%) of the gross receipts therefrom.
• For seven (7) or more social card game establishments, the tax imposed shall be at twenty percent (20%) of the gross receipts therefrom.
1. For purposes of this section a social card game establishment is defined as an establishment open to the public and engaged in the business of operating a social card room.
2. The Finance Director or designee shall notify social card game establishments of the increased tax rate which shall become due on the first day of the financial quarter following the notification. (Ord. 21-1014 § 1; Ord. 18-1033 § 2 (part))
3.25.030 Exemptions.
A. No tax shall be imposed under the authority of this chapter on bingo or amusement games when such activities or any combination thereof 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 or amusement games, or any combination thereof, not exceeding five thousand dollars ($5,000) per year less the amount awarded as cash or merchandise prizes.
B. No tax shall be imposed under the authority of this chapter on the first ten thousand dollars ($10,000) of gross receipts, less the amount awarded as cash or merchandise prizes, from raffles conducted by any bona fide charitable or nonprofit organization. (Ord. 21-1014 § 1; Ord. 18-1033 § 2 (part))
3.25.040 Payment of tax on gambling activities.
A. Every holder of a license issued by the Washington State Gambling Commission who shall conduct any gambling activities within the City shall provide to the Director a copy of each quarterly license report filed with the Gambling Commission pursuant to Chapter 230-05 WAC, no later than five (5) days of such filing.
B. Quarterly Tax Reporting and Payment. The taxes imposed by this chapter shall be due and payable in quarterly installments and remittance therefor, together with the return forms prescribed and provided by the Director, shall be made on or before the final day of the month immediately after the quarterly period in which the tax accrued. Such payments shall be due and payable on January 31st, April 30th, July 31st, and October 31st of each respective year.
1. Whenever any person, association, or organization taxed under this chapter quits business, sells out, or otherwise disposes of its business, or terminates the business, any tax due shall become due and payable immediately, and such taxpayer shall, within ten (10) days after the last date the establishment is open for business, file a return and pay the tax due. (Ord. 21-1014 § 1; Ord. 18-1033 § 2 (part))
3.25.050 Delinquencies.
A. For each payment due, if such payment is not made by the due date thereof, there shall be a penalty assessed as follows:
1. If not paid by the due date, a penalty of ten percent (10%) of the total unpaid tax due, with a minimum penalty of ten dollars ($10.00).
2. If not paid on or before thirty (30) days after the due date, a penalty of fifteen percent (15%) of the total unpaid tax due (including penalties assessed in accordance with this section), with a minimum penalty of fifteen dollars ($15.00).
3. If not paid on or before sixty (60) days after the due date, twenty percent (20%) of the total tax due with a minimum penalty of twenty dollars ($20.00).
4. Failure to make full payment of all taxes and penalties due within ninety (90) days after the due date shall be deemed to be both a criminal and civil violation of this chapter. (Ord. 21-1014 § 1; Ord. 18-1033 § 2 (part))
3.25.060 Administration and collection.
A. The administration and collection of the taxes imposed by this chapter shall be by the Director or designee, pursuant to the rules and regulations of the Washington State Gambling Commission.
B. The Director may adopt and publish such rules and regulations not inconsistent with the provisions of this chapter as may be reasonably necessary to enforce the provisions of this chapter. Such rules and regulations may include the form of tax return required to be filed with the City at the time of payment of the tax on gambling activities, and procedures for auditing of the taxpayer’s records. A copy of the rules and regulations so adopted shall be on file and available for public examination in the City Clerk’s office. (Ord. 21-1014 § 1; Ord. 18-1033 § 2 (part))
3.25.070 Declaration of intent – Filing prior to conducting gambling activities.
A. For the purpose of identifying who shall be subject to the tax imposed by this chapter, any person, association, or organization intending to conduct or operate any gambling activity authorized by Chapter 9.46 RCW shall, prior to commencement of such activity, file with the Director a sworn declaration of intent to conduct or operate such activity, together with a copy of the license issued by the Washington State Gambling Commission in accordance with Chapter 9.46 RCW. (Ord. 21-1014 § 1; Ord. 18-1033 § 2 (part))
3.25.080 Records required to be maintained – Inspection by the City.
Each person, association, or organization engaging in a gambling activity shall maintain records required to be maintained by the Gambling Commission pursuant to WAC 230-06-070 as now enacted or hereafter amended. Such records shall be made available for review and inspection by the Director or designee. (Ord. 21-1014 § 1; Ord. 18-1033 § 2 (part))
3.25.090 Taxes, penalties, service charges, and fees constitute debt to municipality.
A. Any tax due and unpaid under this chapter including any penalties assessed in accordance with SMC 3.25.050 shall constitute a debt to the City. The Director, in conjunction with the City Attorney, is authorized to collect such debt by one (1) or more of the following ways:
1. By action at law and writ of attachment pursuant to RCW 9.46.350, as now enacted or hereafter amended.
2. By use of a collection agency pursuant to Chapter 19.16 RCW, as now enacted or hereafter amended.
3. By instituting legal action in a court of law.
4. Seek collection by court proceedings, which remedies shall be in addition to all other existing remedies. Further, as provided for in RCW 9.46.110(4), as now enacted or hereafter amended, taxes and associated penalties and charges imposed under this chapter shall become a lien upon personal and real property used in the gambling activity in the same manner as provided for under RCW 84.60.010 for property taxes. The lien shall attach on the date the tax becomes due and shall relate back and have priority against real and personal property to the same extent as ad valorem taxes. (Ord. 21-1014 § 1; Ord. 18-1033 § 2 (part))
3.25.100 Penalties.
Any person who shall fail or refuse to pay the tax as required in this chapter, or who shall willfully disobey any rule or regulation promulgated under this chapter, shall be guilty of a misdemeanor and upon conviction shall be punished by imprisonment for not more than ninety (90) days or by a fine of not more than one thousand dollars ($1,000) or by both such fine and imprisonment. Any such fine shall be in addition to the tax required. Officers and directors of any association or organization conducting gambling activities shall be jointly and severally liable for the payment of the tax and for the payment of any fine imposed under this chapter. (Ord. 21-1014 § 1; Ord. 18-1033 § 2 (part))