Chapter 3.82
GAMBLING TAX
Sections:
3.82.010 Definitions – Statutory authority.
3.82.020 Imposed – Activities designated – Amounts.
3.82.030 Computation and quarterly payment required – Exceptions.
3.82.040 Administration and collection – Finance director responsibilities.
3.82.060 Penalty for late payment.
3.82.070 Declaration of intent to engage in taxable activity – Filing required.
3.82.080 Record keeping and inspection requirements.
3.82.090 Overpayment or underpayment – Time limitation.
3.82.100 Failure to make return – Effect.
3.82.120 Taxes, penalties and fees constitute debt to city.
3.82.130 Recovery of tax payments – Time limitation.
3.82.010 Definitions – Statutory authority.
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 RCW Chapter 9.46, each as amended, and under the rules of the Washington State Gambling Commission, WAC Chapter 230, unless otherwise specifically provided, or the context in which they are used herein clearly indicates that they be given some other meaning. (Ord. A-2777 § 1, 1975).
3.82.020 Imposed – Activities designated – Amounts.
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. Bingo, in the amount of the gross receipts therefrom, less the amount actually awarded as cash or merchandise prizes, during the taxable period, multiplied by the rate of five percent;
B. Raffles, in the amount of the gross receipts therefrom, less the amount actually awarded as cash or merchandise prizes, during the taxable period, multiplied by the rate of five percent;
C. Amusement games, in the amount of the gross receipts therefrom, less the amount actually awarded as prizes, during the taxable period, multiplied by the rate of two percent;
D. Any punch boards or pull tabs, in the amount of the gross receipts from the operation of the games, less the amount actually awarded as cash or merchandise prizes, during the taxable period, multiplied by the rate of eight percent;
E. Card playing, in the amount of eight percent of the gross receipts received as fees charged persons for the privilege of playing in card games.
Provided, that 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 this chapter, which organization has no paid operating or management personnel and has gross receipts from bingo or amusement games, or a combination thereof, not exceeding five thousand dollars per year, less the amount actually awarded as cash or merchandise prizes.
Provided further, that no tax shall be imposed on the first ten thousand dollars of gross receipts, less the amount awarded as cash or merchandise prizes, from raffles conducted by any bona fide charitable or nonprofit organization as defined in this chapter. (Ord. 2007-39 § 1, 2007: Ord. 99-29 § 1, 1999: Ord. 97-24 § 1, 1997: Ord. 96-42 § 1, 1996; Ord. 95-9 § 1, 1995: Ord. A-3721 § 1, 1992: Ord. 2777 § 2, 1975).
3.82.030 Computation and quarterly payment required – 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 of Walla Walla, Washington, 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 30th and October 31st of each year; provided, that the following exceptions to this payment schedule shall be allowed, or required:
A. Except as provided in B below, 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 four consecutive weeks, 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 ten days thereafter, make a return and pay the tax due.
B. It is recognized that some bona fide charitable or bona fide nonprofit organization taxpayers will be conducting or operating taxable activities only upon an occasional and random basis. Except as provided in C below, when such a taxpayer conducts only one taxable activity during any calendar quarter, the duration of each such activity does not exceed seven consecutive calendar days, and the gross receipts there from do not exceed two hundred fifty dollars per quarter, that taxpayer need not remit the tax due with a return therefor until on or before January 31st of the year following that year in which the activity took place. Such returns shall be made upon a special form to be supplied by the finance director or his designate. First payment and returns under this subsection shall be made on or before January 31, 1976.
C. Whenever it appears to the finance director or his designate that the collection of taxes from any person, association or organization may be in jeopardy, that officer, after not less than fifteen 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 he shall deem appropriate under the circumstances. (Ord. A-2777 § 3, 1975).
3.82.040 Administration and collection – Finance director responsibilities.
A. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the finance director. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the finance director. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.
B. The finance director, or his designate, 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 finance director shall make forms available to the public in reasonable numbers in his office during regular business hours.
C. In addition to the return form, a copy of the taxpayer’s quarterly report to the Washington State Gambling Commission, required by WAC 230-08 for the period in which the tax accrued, shall accompany remittance of the tax amount due. (Ord. A-2777 § 4, 1975).
3.82.050 Method of payment.
Taxes payable hereunder shall be remitted to the finance director 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 finance director 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 finance director after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. A-2777 § 5, 1975).
3.82.060 Penalty for late payment.
If full payment of any tax or fee due under this chapter is not received by the finance director on or before the date due, there shall be added to the amount due a penalty fee as follows:
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A. 1 – 10 days late |
six percent of tax due; |
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B. 11 – 20 days late |
eight percent of tax due; |
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C. 21 – 31 days late |
ten percent of tax due; |
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D. 32 – 60 days late |
twelve percent of tax due; |
but in no event shall the penalty amount be less than five dollars. In addition to this penalty, the finance director may charge the taxpayer interest of one percent of all taxes and fees due for each thirty-day period, or portion thereof, that said amounts are past due.
Failure to make payment in full of all tax amounts, and penalties, within sixty days following the day the tax amount initially became due shall be both a civil and a criminal violation of this section. (Ord. A-2777 § 6, 1975).
3.82.070 Declaration of intent to engage in taxable activity – Filing required.
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 finance director a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the 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 ten days prior to conducting or operating the taxable activity, or twenty days after July 11, 1975, if the activity is being conducted prior to the adoption hereof. 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 in this chapter only.
Failure to file timely shall not excuse any person, association or organization from any tax liability. (Ord. A-2777 § 7, 1975).
3.82.080 Record keeping and inspection requirements.
A. 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 WAC 230-08, and the United States Internal Revenue Service respecting taxation, shall be kept and maintained for the periods required by those agencies.
B. 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 finance director or his designees, for the purpose of enforcing the provisions of the taxing ordinance codified in this chapter.
C. 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 finance director may examine them conveniently, the taxpayer shall either:
1. Produce all of the required books, records or items within this jurisdiction for such inspection within seven days following a request of the local official that he do so; or
2. Bear the actual cost of inspection by the finance director 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 finance director 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.
D. 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 finance director.
E. This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the finance director 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. A-2777 § 8, 1975).
3.82.090 Overpayment or underpayment – Time limitation.
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 finance director that within three years immediately preceding receipt by the finance director 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 finance director 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 amounts 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 that properly due, or no tax or other fee has been paid, the finance director 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 ten calendar days of such mailing. (Ord. A-2777 § 9, 1975).
3.82.100 Failure to make return – Effect.
If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the 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. A-2777 § 10, 1975).
3.82.110 Tax not exclusive.
The tax herein levied shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of Walla Walla, except as herein otherwise expressly provided. (Ord. A-2777 § 11, 1975).
3.82.120 Taxes, penalties and fees constitute debt to city.
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. A-2777 § 12, 1975).
3.82.130 Recovery of tax payments – Time limitation.
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 the 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. A-2777 § 13, 1975).
3.82.140 Violation – Penalty.
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 pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed three hundred dollars or by imprisonment in the city jail for a term not exceeding ninety 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 shall be guilty of a violation of this chapter for each day during which the gambling activity is carried on. (Ord. A-2777 § 14, 1975).