Chapter 3.50
GAMBLING TAX
Sections:
3.50.020 Taxes imposed – Amounts.
3.50.030 Taxes computed and paid quarterly – Exceptions.
3.50.040 Administration and collection of tax.
3.50.060 Failure to make timely payments of tax or fee.
3.50.070 Intention to engage in activity to be filed.
3.50.090 Failure to make return.
3.50.100 Taxes and fees constitute debt to municipality.
3.50.010 Meaning of terms.
For the purposes of this chapter the words and terms used shall have the same meaning as each has under Chapter 28, Laws of 1973, First Extraordinary Session and 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. 736 § 1, 1989).
3.50.020 Taxes imposed – Amounts.
There is hereby levied a tax upon all persons, associations and organizations who conduct or operate gambling activities within the city, and who have been duly licensed by the Washington State Gambling Commission to conduct or operate such gambling activities, which tax shall be paid on the following gambling activities in the following respective amounts:
A. Bingo and Raffle Games. Any bingo or raffle activity, a tax computed at the rate of five percent of the gross receipts received from the conduct of such activity and less the amount paid in cash or merchandise for or as prizes in the conduct of such activity; provided, however, that no tax shall be imposed under the authority of this chapter on bingo when such activity or any combination thereof is conducted by any bona fide charitable or nonprofit organization as defined in RCW 9.46.0209, which organization has not paid operating or management personnel and has gross income from bingo or amusement games, or any combination thereof, not exceeding $5,000 per year less the amount paid for or as prizes; and provided further, that no tax shall be imposed on the first $10,000 of gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by bona fide charitable or nonprofit organizations; and provided further, that such activities carried out by public or private schools, including parent organizations sponsored by or related to public or private schools, including parent organizations and student body organizations, shall be exempt from the provisions of this chapter when the proceeds of such activities are applied for the benefit of any school, or the school-sponsored or school-related organization; and provided further, that any deviation from exemption restrictions enumerated herein shall subject such organization to the requirements of this chapter to the same extent if such exemption had not been granted, including required payment within 10 days after written demand of the city clerk-treasurer of any taxes formerly granted exemption hereunder.
B. Amusement Games. Any amusement game, a tax computed at two percent of the gross revenue less the amount paid for or as prizes; provided, however, that no tax shall be imposed under the authority of this chapter on amusement games when such activity is conducted by any bona fide charitable or nonprofit organization as defined in RCW 26.09.0209, which organization has not paid operating or management personnel and has gross income from bingo or amusement games, or any combination thereof, not exceeding $5,000 per year less the amount paid for or as prizes; and provided further, that such activities carried out by public or private schools or by organizations sponsored by or related to public or private schools, including parent organizations and student body organizations, shall be exempt from the provisions of this chapter when the proceeds of such activities are applied for the benefit of any school, or school-sponsored or school-related organization; and provided further, that any deviation from exemption restrictions enumerated herein shall subject such organization to the requirements of this chapter to the same extent as if such exemption had not been granted, including required payment within 10 days after written demand of the city clerk-treasurer of any taxes formerly granted exemption hereunder.
C. Punch Board or Pull-Tabs. Any punch board or pull-tab, a tax computed at the rate of two percent of the gross receipts received from the conduct of such activity.
D. Card Games. Any card game, a tax computed at the rate of 10 percent of the gross income received from the conduct of such activity. (Ord. 999 § 1, 2004; Ord. 736 § 2, 1989).
3.50.030 Taxes computed and paid quarterly – Exceptions.
Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter year. They shall be due and payable in quarterly installments, and the remittance, together with return forms, shall be made to the city of Soap Lake, Washington. This shall be done on or before the last day of the month next succeeding the quarterly period in which the tax is accrued: that is on January 31st, April 30th, July 31st, and October 31st of each year. The following exceptions to this payment schedule shall be allowed or required:
A. Whenever any person, association, or organization taxable hereunder, conducting or operating a taxable activity on a regular basis discontinues operation for a period of more than four consecutive weeks, or quits business, sells out or otherwise disposes of the business, or terminates the business, any tax due shall become payable, and such taxpayer shall within 10 days make a return and pay the tax.
B. Whenever it appears to the city clerk-treasurer that the collection of taxes from any person, association, or organization may be jeopardy, the city clerk-treasurer after not less than 15 days notice to the taxpayer, may require the taxpayer to remit taxes and returns at whatever intervals the city clerk-treasurer shall deem appropriate under the circumstances.
C. Whenever reports required by the State Gambling Commission under provisions of Chapter 9.46 RCW are required on less than a quarterly basis, any person, association, or organization taxable hereunder shall report to the city on the same basis. (Ord. 736 § 3, 1989).
3.50.040 Administration and collection of tax.
A. Administration and collection of the various taxes imposed herein shall be the responsibility of the city clerk-treasurer of the city. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the city clerk-treasurer. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate, and complete. The city clerk-treasurer is authorized but not required to mail taxpayers the necessary forms. Failure of the taxpayers to receive such a form shall not excuse them from making the return and timely paying all taxes due. The city clerk-treasurer shall make forms available to the public during regular business hours.
B. In addition to the return form, a copy of the taxpayers quarterly report to the Washington State Gambling Commission required by Chapter 230-08 WAC for the period in which the tax accrued shall accompany remittance of the tax. (Ord. 736 § 4, 1989).
3.50.050 Method of payment.
Taxes payable shall be remitted to the city clerk-treasurer on or before the time required by bank draft, certified check, cashier’s check, personal check, money order, or in cash. (Ord. 736 § 4, 1989).
3.50.060 Failure to make timely payments of tax or fee.
A. If full payment of any tax or fee due is not received by the city clerk-treasurer on or before the date due, there shall be added to the amount due an additional charge as follows:
1 – 10 days late: 6% of tax due
11 – 20 days late: 8% of tax due
21 – 31 days late: 10% of tax due
32 – 60 days late: 12% of tax due
but in no event shall the amount be less than $5.00. In addition, the city clerk-treasurer may charge the taxpayer interest of one percent of all taxes and fees due for each 30-day period, or portion thereof, which said amounts are past due.
B. Failure to make payment in full of all taxes and penalties within 60 days following the day the tax amount initially became due shall be both a civil and criminal violation of this section. (Ord. 736 § 4, 1989).
3.50.070 Intention to engage in activity to be filed.
A. In order that the city may identify those persons who are subject to taxation under these provisions, each person, association or organization shall file with the city clerk-treasurer a form “declaration of intent” to conduct an activity taxable as herein provided. The declaration of intent shall be in a form to be prescribed by the city clerk-treasurer and shall be submitted with a copy of the license issued by the Washington State Gambling Commission. The filing shall be made not later than 10 days prior to conducting or operating a taxable activity or 20 days after the effective date of the ordinance codified in this chapter if the activity is being conducted prior to its adoption. No fee shall be charged for such filing, which is not for the purpose of regulation of this activity.
B. Failure to timely file shall not excuse any person, association, or organization from any tax liability. (Ord. 736 § 5, 1989).
3.50.080 Records required.
Each person, association, or organization engaging in any activity taxable under these provisions shall maintain records respecting that activity which truly, completely and accurately disclose all information necessary to determine the tax liability during each base tax period. Such records shall be kept and maintained for a period of not less than three years. In addition, all information and items required by the Washington State Gambling Commission under Chapter 230-08 WAC, and the United States Internal Revenue Service respecting taxation shall be kept and maintained for the periods required by those agencies. (Ord. 736 § 6, 1989).
3.50.090 Failure to make return.
If any taxpayer fails, neglects or refuses to make and file his return as and when required under these provisions, the city clerk-treasurer is authorized to determine the amount of tax payable, together with any other charges and/or interest assessed. The taxpayer shall then be notified by mail of the amount which shall become immediately due and payable. (Ord. 736 § 7, 1989).
3.50.100 Taxes and fees constitute debt to municipality.
Any tax due and unpaid under these provisions and all other charges or fees shall constitute a debt to the city of Soap Lake, a municipal corporation, and may be collected by court proceedings the same as any other debt in like amount, but shall be in addition to all other existing remedies. (Ord. 736 § 8, 1989).
3.50.110 Revenue.
Any revenue collected from such tax shall be used primarily by the city for the purpose of the enforcement of the provisions of Chapter 9.46 RCW, the rules and regulations of the Washington State Gambling Commission, and this chapter. (Ord. 736 § 9, 1989).