Chapter 3.15
GAMBLING TAX*
Sections:
3.15.030 Tax to be computed and paid quarterly – Exceptions.
3.15.040 Administration and collection.
3.15.060 Failure to make timely payments of tax or fee.
3.15.070 Notice of intention to engage in activity to be filed.
3.15.090 Overpayment or underpayment.
3.15.100 Failure to make return.
3.15.110 Tax additional to others.
3.15.120 Taxes, penalties and fees constitute debt to municipality.
3.15.130 Limitations on right to recovery.
3.15.140 Violation – Penalties.
3.15.150 Causing person to violate rule or regulation as violation – Penalty.
3.15.160 Violation relating to fraud or deceit – Penalty.
3.15.180 Working in gambling activity without license as violation – Penalty.
3.15.190 Gambling information, transmitting or receiving as violation – Penalty.
* Prior legislation: Ord. 1079.
3.15.010 Definitions.
For the purposes of this chapter the words and terms used shall have the same meaning as each has under Chapter 218, 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. 1100 § 1, 1984).
3.15.020 Imposed – Amounts.
There is hereby levied a tax on all persons, associations, and organizations who conduct or operate gambling activities within the city of South Bend 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 upon the basis of the gross receipts received each calendar year less the amount paid for as prizes at the following rate:
|
Rate |
|
|
0 – $12,000 |
0% |
|
over $12,000 |
10% |
provided, however, that no tax shall be imposed under the authority of this chapter on bingo or raffles when such activity or any combination thereof is conducted by any bona fide charitable or nonprofit organization as defined in RCW 9.46.020(3), which organization has no paid operating or management personnel and has gross income from bingo or raffles, or any combination thereof, not exceeding $5,000 per year less the amount paid as prizes; and provided further, that activities carried out by 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 such 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 if such exemption had not been granted, including required payment within 10 days after written demand of city of South Bend of any taxes formerly granted exemption hereunder.
B. Amusement Games. Any amusement game, a tax computed at zero percent of the gross receipts less the amount paid for 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 9.46.020(3), which organization has no paid operating or management personnel and has gross income from amusement games not exceeding $5,000 per year less the amount paid for as prizes; and provided further, that activities carried out by 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 such school, or school-sponsored or school-related organization; and provided further, that any deviation from exemption restrictions enumerated herein shall subject same 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 of South Bend of any taxes formerly granted exemption hereunder.
C. Punchboards or Pulltabs. Any punchboard or pulltab, a tax computed at the rate of five percent of the gross receipts from the conduct of such activity.
D. Card Games. Any card game, a tax computed at the rate of zero percent of the gross receipts from the conduct of such activity.
E. Card playing, in the amount of five percent of the gross receipts received as fees charged persons for the privilege of playing in card games. (Ord. 1163, 1991; Ord. 1100 § 2, 1984).
3.15.030 Tax to be 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 year. They shall be due and payable in quarterly installments and the remittance, together with return forms, shall be made to the clerk-treasurer of the city of South Bend, 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, 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 of South Bend that the collection of taxes from any person, association, or organization may be in jeopardy, the city of South Bend 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 of South Bend clerk-treasurer deems appropriate under the circumstances.
C. Whenever reports required by the State Gambling Commission under the 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 of South Bend clerk-treasurer on the same basis. (Ord. 1100 § 3, 1984).
3.15.040 Administration and collection.
Administration and collection of the various taxes imposed herein shall be the responsibility of the clerk-treasurer of the city of South Bend. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the city. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete. The clerk-treasurer of the city of South Bend is authorized, but not required, to mail to 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 clerk-treasurer of the city of South Bend shall make forms available to the public in reasonable numbers at the City Hall at First and Wallapa in South Bend, Washington during regular business hours.
In addition to the return form, a copy of the taxpayer’s 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. 1100 § 4, 1984).
3.15.050 Method of payment.
Taxes payable shall be remitted to the clerk-treasurer of the city of South Bend 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 clerk-treasurer of the city of South Bend be an acquittance or discharge of the tax unless the taxes are paid in full. The return and a copy of the quarterly report to the Washington State Gambling Commission shall be filed in the office of the clerk-treasurer of the city of South Bend after notation by the office upon the return of the amount actually received from the taxpayer. (Ord. 1100 § 5, 1984).
3.15.060 Failure to make timely payments of tax or fee.
If full payment of any tax or fee due is not received by the clerk-treasurer of the city of South Bend on or before the date due, there shall be added to the amount due a penalty fee as follows:
|
1 |
– 10 days late |
: 6 percent of tax due |
|
11 |
– 20 days late |
: 8 percent of tax due |
|
21 |
– 31 days late |
: 10 percent of tax due |
|
32 |
– 60 days late |
: 11 percent of tax due |
but in no event shall the penalty amount be less than $5.00. In addition to this penalty, the city of South Bend may charge the taxpayer interest of one percent of all taxes and fees due for each 30-day period, or portion thereof, that said amounts are past due.
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 both a civil and criminal penalty of this chapter. (Ord. 1100 § 6, 1984).
3.15.070 Notice of intention to engage in activity to be filed.
In order that the city of South Bend may identify those persons who are subject to taxation under these provisions, each person, association, or organization shall file with the city of South Bend a form “declaration of intent” to conduct an activity taxable as herein provided. The declaration of intent shall be a form to be prescribed by the city of South Bend 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. Failure to timely file shall not excuse any person, association, or organization from any tax liability. (Ord. 1100 § 7, 1984).
3.15.080 Records required.
Each person, association or organization engaging in an activity taxable under these provisions shall maintain records respecting that activity which truly, completely and accurately disclosed 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.
All books, records and other items required to be kept and maintained under this section shall be subject to and immediately available for inspection and audit at any reasonable time with reasonable notice. Inspection shall be made upon demand by the clerk-treasurer of the city of South Bend or its designee at the place where such records are kept, for the purpose of enforcing these provisions.
Where the taxpayer does not keep all of the books, records or items required in this jurisdiction, the taxpayer shall either:
A. Produce all the required books, records, or items within the city of South Bend for such inspection within seven days following a request of the clerk-treasurer of the city of South Bend.
B. Bear the actual cost of the inspection by the clerk-treasurer of the city of South Bend or its 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 of South Bend 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. (Ord. 1100 § 8, 1984).
3.15.090 Overpayment or underpayment.
If, upon application by a taxpayer for a refund or an audit of his records, or upon any examination of the returns or records by the city of South Bend, it is determined that within the immediate past three years:
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 South Bend within such period shall be credited to the taxpayer at the taxpayer’s option. No refund or credit shall be allowed with respect to any excess paid 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 properly due, or no tax or other fee has been paid, the city of South Bend shall mail a statement to the taxpayer showing the balance due, including the tax amount or penalty assessment and fees, and it shall be a separate, additional violation of the provisions of this section, both civil and criminal, if the taxpayer fails to make payment in full within 10 calendar days of mailing. (Ord. 1100 § 9, 1984).
3.15.100 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 of South Bend is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed. The taxpayer shall then be notified by mail of the amount which shall become immediately due and payable. (Ord. 1100 § 10, 1984).
3.15.110 Tax additional to others.
The tax herein levied shall be in addition to any license fee or tax imposed or levied under any law or any other ordinance of the city of South Bend except as herein otherwise provided. (Ord. 1100 § 11, 1984).
3.15.120 Taxes, penalties and fees constitute debt to municipality.
Any tax due and unpaid under these provisions and all penalties or fees shall constitute a debt to the city of South Bend, 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. 1100 § 12, 1984).
3.15.130 Limitations on right to recovery.
The right of recovery by the city of South Bend from the taxpayer for any tax provided hereunder shall be outlawed after the expiration of three calendar years from the date that tax became due. The right of recovery against the city of South Bend 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. 1100 § 13, 1984).
3.15.140 Violation – Penalties.
Any person violating any of the provisions or failing to comply with any of the mandatory requirements of this chapter is guilty of a misdemeanor. Any person convicted of a misdemeanor under this chapter shall be punished by a fine not to exceed $500.00 or an imprisonment in the county jail not to exceed 90 days, or both such fine and imprisonment.
Each such taxpayer is guilty of a separate offense for each and every day during any portion of which any violation of these provisions is committed, continued or permitted by any such taxpayer and he is punishable accordingly. (Ord. 1100 § 14, 1984).
3.15.150 Causing person to violate rule or regulation as violation – Penalty.
Any person who knowingly causes, aids, abets or conspires with another to cause any person to violate any rule or regulation adopted pursuant to Chapter 9.46 RCW originally and as amended shall be guilty of a gross misdemeanor and upon conviction shall be punished by imprisonment in the county jail for not more than one year or by a fine of not more than $5,000 or both such imprisonment and fine. (Ord. 1100 § 15, 1984).
3.15.160 Violation relating to fraud or deceit – Penalty.
Any person or association or organization operating any gambling activity who or which, directly or indirectly, shall in the course of such operation:
A. Employ any device, scheme, or artifice to defraud, or
B. Make any untrue statement of a material fact, or omit to state a material fact necessary in order to make the statement made not misleading, in the light of the circumstances under which said statement is made, or
C. Engage in any act, practice or course of operation as would operate a fraud or deceit upon any person,
shall be guilty of a gross misdemeanor and upon conviction shall be punished by imprisonment in the county jail for not more than one year or by a fine of not more than $5,000 or both. (Ord. 1100 § 16, 1984).
3.15.170 Defrauding or cheating other participant or operator as violation – Causing another to do so as violation – Penalty.
No person participating in a gambling activity shall in the course of such participation, directly or indirectly:
A. Employ or attempt to employ any device, scheme, or artifice to defraud any other participant or any operator; or
B. Engage in any act, practice, or course of operation as a fraud or deceit upon any other participant or any operator; or
C. Engage in any act, practice, or course of operation while participating in a gambling activity with the intent of cheating any other participant or the operator to gain an advantage in the game over the other participant or operator; or
D. Cause, aid, abet, or conspire with another person to cause any other person to violate subsections (A) through (C) of this section.
Any person violating this section shall be guilty of a gross misdemeanor and upon conviction shall be punished by imprisonment in the county jail for not more than one year or by a fine of not more than $5,000 or both. (Ord. 1100 § 17, 1984).
3.15.180 Working in gambling activity without license as violation – Penalty.
Any person who works as an employee or agent or in a similar capacity for another person in connection with the operation of an activity for which a license is required under Chapter 9.46 RCW originally and as amended or by rule of the Washington State Gambling Commission created in Chapter 9.46 RCW without having obtained the applicable license required by the Washington State Gambling Commission under RCW 9.46.070 shall be guilty of a gross misdemeanor and shall, upon conviction, be punished by not more than one year in county jail or a fine of not more than $5,000 or both. (Ord. 1100 § 18, 1984).
3.15.190 Gambling information, transmitting or receiving as violation – Penalty.
Whoever knowingly transmits or received gambling information by telephone, telegraph, radio, semaphore or similar means, or knowingly installs or maintains equipment for the transmission or receipt of gambling information shall be guilty of a gross misdemeanor; provided, however, that this section shall not apply to such information transmitted or received or equipment installed or maintained relating to activities as enumerated in RCW 9.46.030 or any act or acts in furtherance thereof when conducted in compliance with the provisions of Chapter 9.46 RCW originally and as amended and in accord with the rules and regulations adopted pursuant hereto. (Ord. 1100 § 19, 1984).
3.15.200 Revenues.
Any revenues collected from such tax shall be used primarily by the city of South Bend for the purpose of the enforcement of the provisions of Chapter 9.46 RCW and this chapter. (Ord. 1100 § 20, 1984).