Chapter 9.94
GAMBLING
Sections:
9.94.020 Permitted gambling activities.
9.94.040 Tax to be computed and paid quarterly – Exceptions.
9.94.050 Administration and collection of tax.
9.94.070 Failure to make timely payment of tax or fee.
9.94.080 Notice of intention to engage in activity to be filed.
9.94.100 Overpayment or underpayment of tax.
9.94.110 Failure to make return.
9.94.120 Tax additional to others.
9.94.130 City Manager to make rules.
9.94.140 Taxes, penalties and fees constitute debt to municipality.
9.94.160 Limitation on right to recovery.
9.94.170 Violation – Penalties.
9.94.010 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, 1st Ex. Sess. 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 herein, or the context in which they are used herein clearly indicates that they be given some other meaning. [Ord. 2017-3 § 3, 2017.]
9.94.020 Permitted gambling activities.
The City Council authorizes in the City those gambling activities now permitted or hereafter authorized under the laws of the State of Washington, including, but not limited to, bingo, raffles, punchboards and pull-tabs, social card games, amusement games and fishing derbies, so long as said activities are licensed, conducted, or operated pursuant to the laws of the State of Washington. [Ord. 2017-3 § 3, 2017.]
9.94.030 Tax levies.
There is levied upon all persons, associations, and organizations conducting or operating within this jurisdiction any of the activities listed below a tax in the following amounts to be paid to the City:
A. Commercial stimulant operators and all those other than bona fide charitable or nonprofit organizations, as defined by RCW 9.46.110, taxation shall be as follows:
1. Punchboards and pull tabs shall be zero percent of the net receipts from the operation of the games; and
2. Bingo and raffles shall be zero percent of the net receipts of a bingo game or raffle less the amount awarded as cash or merchandise prizes; and
3. Taxation on social card games shall be five percent of the gross revenue from such games.
B. For bona fide charitable or nonprofit organizations, as defined by Chapter 9.46 RCW, a tax in the following amounts shall be paid to the City:
1. No tax shall be imposed upon bingo or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization, which organization has no paid operating or management personnel and has net receipts from bingo or amusement games, or a combination thereof, not exceeding $25,000 per year, less the amount awarded as cash or merchandise prizes. All bona fide charitable or nonprofit organizations not meeting the restrictions above, shall pay tax on bingo in the amount of zero percent of the gross receipts from a bingo game less the amount awarded as cash or merchandise prizes;
2. For raffles, no tax shall be imposed on the first $25,000 of net receipts less the amount awarded as cash or merchandise prizes, and zero percent of the gross receipts in excess of the first $25,000 of net receipts less the amount awarded as cash or merchandise prizes;
3. Punchboards and pull tabs shall be in an amount equal to zero percent of the net receipts from the operation of the games less the amount awarded as cash or merchandise prizes; and
4. Taxation on social card games shall be five percent of the gross revenue from such games.
C. The operation of punchboards and pull tabs shall be subject to the limitations and conditions imposed by RCW 9.46.110. [Ord. 2017-3 § 3, 2017.]
9.94.040 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 quarter year, shall be due and payable in quarterly installments, and remittance therefor, together with return forms, shall be made to the City on or before the last day of the month next succeeding the quarterly period in which the tax accrued, that is, on January 31st, April 30th, July 31st, and October 31st, of each year; provided, that 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 of that taxable activity for a period of more than two consecutive months, or quits business, sells out, or otherwise disposes of its business, or terminates the business, any tax due hereunder shall become due and payable, and such taxpayer shall, within 10 days thereafter, make a return and pay the tax due.
B. Whenever it appears to the City Finance Manager that the collection of taxes from any person, association or organization may be in jeopardy, the City Finance Manager, after not less than 10 days’ notice to the taxpayer, is authorized to require that taxpayer to remit taxes and returns at such shorter intervals than quarterly or annually, as the City Finance Manager shall deem appropriate under the circumstances. [Ord. 2017-3 § 3, 2017.]
9.94.050 Administration and collection of tax.
Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the City Treasurer. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the City Treasurer. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete. The City Treasurer is authorized, but not required, to mail to taxpayers forms for returns. Failure of the taxpayer to receive such a form shall not excuse a taxpayer from making the return and timely paying all taxes due. The City Treasurer shall make forms available to the public in reasonable numbers in the office of the City Treasurer 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 amount due. [Ord. 2017-3 § 3, 2017.]
9.94.060 Method of payment.
Taxes payable hereunder shall be remitted to the City Treasurer 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 City Treasurer be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return, and copy of quarterly report to the Washington State Gambling Commission, shall be filed in the office of the City Finance Director after notation by the City Treasurer upon the return of the amount actually received from the taxpayer. [Ord. 2017-3 § 3, 2017.]
9.94.070 Failure to make timely payment of tax or fee.
If full payment of any tax or fee due under this chapter is not received by the City Treasurer on or before the date due, there shall be added to the amount due a penalty fee as follows:
A. Ten – 20 days late: two percent of tax due;
B. Twenty-one – 31 days late: three percent of tax due;
C. Thirty-two – 60 days late: five percent of tax due;
but in no event shall the penalty amount be less than $15.00. In addition to this penalty, the City Treasurer may charge the taxpayer interest of eight percent of all taxes and fees due for each 30-day period, or portion thereof, that said amount is 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 a criminal violation of this section. [Ord. 2017-3 § 3, 2017.]
9.94.080 Notice of intention to engage in activity to be filed.
In order that the City may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the City Finance Director a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the City Finance Director, together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than seven days prior to conducting or operating the taxable activity. No fee shall be charged for such filing, which is not for the purpose of regulation of this activity but for the purposes of administration of the taxing ordinance codified herein. Failure to timely file shall not excuse any person, association or organization from any tax liability. [Ord. 2017-3 § 3, 2017.]
9.94.090 Records required.
Each person, association, or organization engaging in an activity taxable under this chapter shall maintain records respecting that activity which truly, completely and accurately disclose all information necessary to determine the taxpayer’s tax liability hereunder 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 made available for, inspection and audit at any time, with or without notice, at the place where such records are kept, upon demand by the City Manager, or his designees, for the purpose of enforcing the provisions of the taxing ordinance codified herein. Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this section in this jurisdiction so that the City Manager or his designee may examine them conveniently, the taxpayer shall either:
A. Produce all of the required books, records or items within this jurisdiction for such inspection within three days following a request of the local official that he do so; or
B. Bear the actual cost of inspection by the City Manager or his 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 Manager or his designee 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. A taxpayer who fails, neglects or refuses to produce such books and records either within or without this jurisdiction, in addition to being subject to other civil and criminal penalties provided by this chapter, shall be subject to a jeopardy fee or tax assessment by the City Manager or his designee.
This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the City Treasurer by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the City Treasurer of the amount of tax so determined by jeopardy assessment, together with any penalty and/or interest, and the total of such amounts shall thereupon become immediately due and payable. [Ord. 2017-3 § 3, 2017.]
9.94.100 Overpayment or underpayment of tax.
If, upon application by a taxpayer for a refund or for an audit of his records, or upon any examination of the returns or records of any taxpayer, it is determined by the City Manager that within three years immediately preceding receipt by the City Treasurer of the application by the taxpayer for a refund, or an audit, or, in the absence of such an application, within the three years immediately preceding the commencement by the City Finance Manager of such examination:
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 within such period of three years shall be credited to the taxpayer’s account or shall be credited to the taxpayer at the taxpayer’s option. No refund or credit shall be allowed with respect to any excess tax or fee paid to the City Treasurer 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 that properly due, or no tax or other fee has been paid, the City Treasurer shall mail a statement to the taxpayer showing the balance due, including the tax amount or penalty assessments and fees, and it shall be a separate, additional violation of this chapter, both civil and criminal, if the taxpayer fails to make payment in full within 10 calendar days of such mailing. [Ord. 2017-3 § 3, 2017.]
9.94.110 Failure to make return.
If any taxpayer fails, neglects, or refuses to make and file his return as and when required under this chapter, the City Finance Director is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed under the provisions of this chapter, and by mail to notify such taxpayer of the amount so determined, which amount shall thereupon become the tax and penalty and/or interest and shall become immediately due and payable. [Ord. 2017-3 § 3, 2017.]
9.94.120 Tax additional to others.
The tax herein levied shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of Sunnyside, Washington, except as herein otherwise expressly provided. [Ord. 2017-3 § 3, 2017.]
9.94.130 City Manager to make rules.
The City Manager shall have the power, and it shall be his duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with superior law, for the purpose of carrying out the provisions hereof, and it shall be unlawful to violate or fail to comply with any such rule or regulation. [Ord. 2017-3 § 3, 2017.]
9.94.140 Taxes, penalties and fees constitute debt to municipality.
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the City, a municipal corporation, and may be collected by court proceedings the same as any other debt in like amount which shall be in addition to all other existing remedies. [Ord. 2017-3 § 3, 2017.]
9.94.150 Lien authorization.
Taxes 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. 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. 2017-3 § 3, 2017.]
9.94.160 Limitation on right to recovery.
The right of recovery by the City from the taxpayer for any tax provided hereunder shall be outlawed after the expiration of three calendar years from the date said tax became due. The right of recovery against the City 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. 2017-3 § 3, 2017.]
9.94.170 Violation – Penalties.
Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the City Manager pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed $500.00, or by imprisonment for a term not exceeding 90 days, or by both such fine and imprisonment. Any taxpayer who engages in, or carries on, any gambling activity subject to a tax hereunder without having complied with the provisions of this chapter is guilty of a violation of this chapter for each day during which the gambling activity is carried on. [Ord. 2017-3 § 3, 2017.]
9.94.180 Severability.
If any provision or section of this chapter shall be held void or unconstitutional, all other parts, provisions and sections of this chapter not expressly so held to be void or unconstitutional shall continue in full force and effect. [Ord. 2017-3 § 3, 2017.]