Chapter 3.30
GAMBLING TAX
Sections:
3.30.050 Charitable, nonprofit organization – Declaration of intent to conduct gambling activity.
3.30.060 Due date – Delinquency.
3.30.100 Underpayment of tax, interest, or penalty – Interest.
3.30.010 Definitions.
For the purposes of this chapter, the terms used herein shall have the same meanings as defined in Chapter 9.46 RCW, as the same now exists or may hereafter be amended. [Ord. 41 § 7, 1995]
3.30.020 Imposed.
Pursuant to RCW 9.46.110, as the same now exists or may hereafter be amended, there is levied upon all persons, associations or organizations a tax on all gambling activities occurring within the city as permitted by state law at the following rates:
A. Bingo or raffles at a rate of five percent of the gross revenues received therefrom, less the amount paid for as prizes.
B. Amusement games at a rate of two percent of the sum of the gross revenues received therefrom, less the amount paid for as prizes, and which rate will generate an amount sufficient to pay the actual costs of enforcement of the provisions of this chapter and Chapter 9.46 RCW.
C. Punchboards or pull-tabs at a rate of five percent of gross receipts; provided, however, that taxation of punchboards or pull-tabs for bona fide charitable or nonprofit organizations shall be at a rate of 10 percent of gross receipts from operation of the games less the amount awarded as cash or merchandise prizes.
D. All social card game rooms licensed under the provisions of RCW 9.46.030(1) and (4) at a rate equal to 10 percent of the annual gross receipts exceeding $10,000. [Ord. 437 §§ 1, 2, 2006; Ord. 400 § 1, 2005; Ord. 375 § 2, 2005; Ord. 226 § 1, 2000; Ord. 133 § 1, 1997; Ord. 58 § 1, 1995; Ord. 41 § 1, 1995]
3.30.030 Exemptions.
No tax shall be imposed pursuant to this chapter on bingo or amusement games or social card game rooms when such gambling activities, or any combination thereof, are conducted by a bona fide charitable or nonprofit organization as defined in RCW 9.46.020, as the same now exists or may hereafter be amended, which organization has no paid operating or management personnel for the gambling activities and has gross income from bingo or amusement games, or any combination thereof, not exceeding $5,000 per year, less the amount paid for as prizes. No tax shall be imposed on the first $10,000 of net proceeds from raffles conducted by bona fide charitable organizations. [Ord. 58 § 2, 1995; Ord. 41 § 2, 1995]
3.30.040 Administration.
The administration and collection of the tax imposed by SMC 3.30.020 shall be by the administrative services director and pursuant to the rules and regulations of the Washington State Gambling Commission. The administrative services director is instructed and authorized to adopt appropriate reporting requirements, to ensure the effective administration of license holders exempt from the payment of the tax and to make such further rules and regulations for the purpose of carrying out the provisions of this chapter. [Ord. 827 § 1, 2018; Ord. 41 § 3, 1995]
3.30.050 Charitable, nonprofit organization – Declaration of intent to conduct gambling activity.
For the purpose of identifying the persons, associations and organizations that shall be subject to the tax imposed by SMC 3.30.020, any bona fide charitable or nonprofit corporation intending to conduct or operate any bingo game, raffle or amusement game which requires licensing as provided in and authorized by Chapter 9.46 RCW, as the same now exists or may be hereafter amended, shall, prior to commencement of any such activity, file with the administrative services director a sworn declaration of intent to conduct or operate such activity, together with a copy of the license issued in accordance with Chapter 9.46 RCW, as the same now exists or may be hereafter amended. Thereafter, for any period covered by such state license or any renewal thereof, any such licensed bona fide charitable or nonprofit corporation shall, on or before the thirtieth day of the month following the end of the quarterly period in which the tax accrued, file with the administrative services director a sworn statement, on a form to be provided and prescribed by the administrative services director, for the purpose of ascertaining the tax due for the preceding quarterly period. [Ord. 827 § 2, 2018; Ord. 41 § 4, 1995]
3.30.060 Due date – Delinquency.
A. The tax imposed under SMC 3.30.020 shall be due and payable in quarterly installments, and remittance therefor shall accompany a return on a form approved by the administrative services director and be made on or before the thirtieth day of the month next succeeding the quarterly period in which the tax accrued. Quarterly reporting periods shall begin the first day of the months of January, April, July and October.
B. If payment of any tax due on a return to be filed by a taxpayer is not received by the administrative services director by the due date, the administrative services director shall add a penalty in accordance with RCW 82.32.090(1), as it now exists or as it may be amended.
C. If the administrative services director determines that any tax has been substantially underpaid as defined in RCW 82.32.090(2), there shall be added a penalty in accordance with RCW 82.32.090(2), as it now exists or as it may be amended.
D. If a citation or criminal complaint is issued by the administrative services director for the collection of taxes, fees, assessments, interest or penalties, there shall be added thereto a penalty in accordance with RCW 82.32.090(3), as it now exists or as it may be amended.
E. If the administrative services director determines that all or any part of a deficiency resulted from the taxpayer’s failure to follow specific written tax reporting instructions, there shall be assessed a penalty in accordance with RCW 82.32.090(5), as it now exists or as it may be amended.
F. If the administrative services director finds that all or any part of the deficiency resulted from an intent to evade the tax payable, the administrative services director shall assess a penalty in accordance with RCW 82.32.090(6), as it now exists or as it may be amended.
G. The penalties imposed under subsections B through E of this section can each be imposed on the same tax found to be due. This provision does not prohibit or restrict the application of other penalties authorized by law.
H. The administrative services director shall not impose both the evasion penalty and the penalty for disregarding specific written instructions on the same tax found to be due.
I. For the purposes of this section, “return” means any document a person is required by the city of Shoreline to file to satisfy or establish a tax or fee obligation that is administered or collected by the city, and that has a statutorily defined due date.
J. If incorporation into the City of Shoreline Municipal Code of future changes to RCW 82.32.090 is deemed invalid, then the provisions of RCW 82.32.090 existing at the time of the effective date of the ordinance codified in this chapter shall apply. [Ord. 827 § 3, 2018; Ord. 541 § 1, 2009; Ord. 41 § 5, 1995]
3.30.070 Financial records.
It shall be the responsibility of all officers, directors and managers of any corporation conducting any gambling activities subject to taxation under this chapter to make available at all reasonable times such financial records as the administrative services director may require to determine full compliance with this chapter. [Ord. 827 § 4, 2018; Ord. 41 § 6, 1995]
3.30.080 Unlawful acts.
It is unlawful for any person liable for the tax imposed by this chapter to fail to pay the tax when due or for any person to make any false or fraudulent return or any false statement in connection with the return. [Ord. 41 § 8, 1995]
3.30.090 Violation – Penalty.
Any person violating any provision of this chapter shall be guilty of a misdemeanor and upon conviction thereof punished pursuant to state law or city ordinance. [Ord. 41 § 9, 1995]
3.30.100 Underpayment of tax, interest, or penalty – Interest.
A. If, upon examination of any returns, or from other information obtained by the administrative services director, it appears that a tax or penalty less than that properly due has been paid, the administrative services director shall assess the additional amount found to be due and shall add thereto interest on the tax only. The administrative services director shall notify the person by mail of the additional amount, which shall become due and shall be paid within 30 days from the date of the notice, or within such time as the administrative services director may provide in writing.
B. The administrative services director shall compute interest in accordance with RCW 82.32.050, as it now exists or as it may be amended. If this provision is held to be invalid, then the provisions of RCW 82.32.050 existing at the time of the effective date of the ordinance codified in this chapter shall apply. [Ord. 827 § 5, 2018]