Chapter 3.88
LOCAL ADMISSIONS TAX
Sections:
3.88.030 Complimentary admissions.
3.88.050 Collection and remittance of tax.
3.88.055 Certificate of registration – Application and issuance.
3.88.060 Certificate of registration – Transitory events.
3.88.080 Adoption of additional rules and regulations.
3.88.010 Levy and amount.
There is levied and imposed an admission tax in the amount of five percent of the admission charge upon any person who is admitted to any outdoor place where a concert, festival/fair or entertainment event with a capacity for one thousand or more persons is held and an admission fee is regularly charged, including persons who are admitted free of charge, or at reduced rates. If the calculation of the tax results in an amount that is not a round number, the amount of the tax shall be rounded down to the nearest cent. No persons shall sell or otherwise distribute tickets of admission which disclose a rate of admission tax other than as provided in this chapter. (Ord. 2021-05 § 1, 2021).
3.88.020 Exemptions.
The admissions tax as imposed in this chapter shall not apply to anyone paying an admission charge:
A. To any activity of any elementary or secondary school as contemplated by RCW 35.21.280;
B. To any activity of any public facility of a public facility district as contemplated by RCW 35.21.280;
C. To any activity of any parent-teacher association (PTA), or similar organization; provided, that the proceeds of the activity are used to benefit an elementary or secondary school;
D. To any athletic event, including, but not limited to, football games, soccer games, softball games, or baseball games;
E. To any recreational activity where the person admitted personally engages in the activity, such as golfing, hiking, or skiing; or
F. To an activity where the regular admission fee is less than fifteen dollars. (Ord. 2021-05 § 1, 2021).
3.88.030 Complimentary admissions.
Anyone who is admitted free of charge to any place or for any event for which other persons pay an admission charge shall pay an admission tax measured by the full admission charge, unless:
A. Admission is free to the public generally on the date or for the event;
B. Admission is free to a general classification of the public (e.g., children, senior citizens, or military personnel) and the entrant is a member of the classification;
C. The complimentary admissions are distributed for bona fide charitable purposes or through any bona fide charity, or are distributed through any elementary or secondary school;
D. The persons so admitted are performers, people assisting in the performance or activity, or bona fide members of the press; or
E. The person who provided complimentary admission has paid the admission tax on the admission. (Ord. 2021-05 § 1, 2021).
3.88.040 Discount admissions.
Anyone who is admitted at a reduced price to any place or for any event for which other persons pay a regular, higher admission charge shall pay an admission tax measured by the regular, higher admission charge, unless:
A. The reduced charge is available to a general classification of the public identified in rates posted or published for the event (e.g., children, senior citizens, or military personnel);
B. The reduced charge is based on the presentment of a coupon distributed broadly as a notice or advertisement; or
C. The reduced charge results from the donation of tangible personal property (e.g., food, clothing or toys) at the place of admission as an organized collection for delivery to a bona fide charity.
In cases that satisfy one or more of these conditions, the admission tax shall be measured based on the reduced charge actually paid for admission. (Ord. 2021-05 § 1, 2021).
3.88.050 Collection and remittance of tax.
A. Every person receiving any payment for admission for which a tax is levied under this chapter (collecting entity) shall collect the amount of the tax imposed from the person making the admission payment. The tax required to be collected under this chapter shall be deemed to be held in trust by the collecting entity until paid to the city finance department as provided in this chapter. Any person required to collect the tax imposed under this chapter who fails to collect the same, or having collected the same fails to remit the same to the city finance department in the manner prescribed by this chapter, shall be personally liable to the city for the amount of such tax.
B. The tax imposed hereunder shall be collected at the time the admission charge is paid and shall be reported and remitted by the collecting entity to the city finance department monthly on or before the fifteenth day of the month following the month in which the tax was collected. Remittance may be made by check, but payment by check shall not relieve the collecting entity of liability for remittance of the tax to the city unless the check is honored and is in the full and correct amount.
C. The collecting entity shall make out a return upon such forms as the city finance director may require, showing the amount of the tax upon admissions for which the collecting entity is liable from the preceding monthly period, and shall sign and transmit the said forms to the city finance department, along with a remittance for said amount.
D. Whenever any concert, festival/fair or entertainment event makes admission charge, and is subject to the tax levied in this chapter, and the same is of a temporary or transitory nature, of which the city finance director shall be the judge, the city finance director may require a report and remittance of the admission tax immediately upon the collection of the same, at the conclusion of the concert, festival/fair or entertainment event, or at such other times as the city finance director shall determine.
E. Whenever any collecting entity stops doing business, transfers ownership, or otherwise ceases doing business, any admission tax collected shall become due and payable immediately, and the collecting entity shall submit a return form and pay the tax due within ten days of the ceasing of business.
F. Whenever it appears to the city finance director that the collection of taxes from any collecting entity may be in jeopardy, the city finance director, after not less than ten days’ prior written notice to the collecting entity, may require that the collecting entity remit taxes due at shorter intervals than otherwise prescribed in this chapter. (Ord. 2021-05 § 1, 2021).
3.88.055 Certificate of registration – Application and issuance.
Any collecting entity shall procure from the city finance department a certificate of registration, the fee for which shall be as defined in the city’s fee schedule, by applying on a form prescribed by the city finance director. Certificates of registration shall be valid for twelve months following the issue date of the certificate of registration. Such certificate of registration shall be posted in a conspicuous place where tickets of admission are sold. (Ord. 2021-05 § 1, 2021).
3.88.060 Certificate of registration – Transitory events.
Whenever a certificate of registration is obtained for the purpose of operating or conducting a temporary or transitory concert, festival/fair or entertainment event by persons who are not the owners, lessees or custodians of the place where the concert, festival/fair or entertainment event is to be conducted, the tax imposed by this chapter shall be reported and remitted as provided for in this chapter by said owner, lessee or custodian, unless paid by the person conducting the concert, festival/fair or entertainment event. The applicant for a certificate of registration for such purpose shall furnish with the application therefor the name and address of the owner, lessee or custodian of the premises upon which the concert, festival/fair or entertainment event is to be conducted and such owner, lessee or custodian shall be notified by the city finance department of the issuance of such certificate, by mail or otherwise, and of the joint liability for collection and remittance of such tax. (Ord. 2021-05 § 1, 2021).
3.88.070 Record keeping.
A. Each collecting entity shall maintain records respecting that activity which truly, completely, and accurately disclose all information necessary to determine the collecting entity’s tax liability. Such records shall be kept and maintained for a period of not less than three years.
B. All records required to be kept and maintained under this section shall be subject to immediate inspection and audit at any time, with or without notice, at the place where such records are kept upon the demand of the city finance director, or his or her designee, for the purpose of enforcing the provisions of this chapter.
C. Where a collecting entity does not keep all of the required records within the boundaries of the city so that the auditor may examine them conveniently, the collecting entity shall either:
1. Produce and make available for inspection within the city all of the required records within ten days following a request by the city finance director or his or her designee that the collecting entity do so; or
2. Bear the actual cost of inspection by the city finance director or the designee at the location where the records are located. The collecting entity shall pay in advance to the city the estimated costs thereof, including, but not limited to, round trip fare by the most rapid means, lodging, meals, and incidental expenses. The actual amounts due or to be refunded for expenses shall be determined following the examination of the records.
D. When an admission tax has not been remitted, or when a tax has been paid that is less than that properly due, the city finance director shall determine the amount of tax due and mail a statement to the collecting entity, stating the balance due, including the tax amount and any penalty assessments or fees. It shall be a separate, additional violation of this chapter, both civil and criminal, if the collecting entity fails to make payment in full within ten calendar days of that mailing. (Ord. 2021-05 § 1, 2021).
3.88.080 Adoption of additional rules and regulations.
The city manager may adopt rules and regulations not inconsistent with the terms of this chapter in order to administer the collection and remittance of the tax levied in this chapter. A copy of such rules and regulations shall be on file and available for public examination in the office of the city clerk. Failure to follow those rules established by the city manager shall constitute a violation of this chapter. (Ord. 2021-05 § 1, 2021).
3.88.090 Violation – Penalty.
Each violation or failure to comply with the provisions of this chapter constitutes a separate infraction which shall subject a violator to a fine as provided in Section 1.24.010. (Ord. 2021-05 § 1, 2021).