Chapter 3.40
GAMBLING TAX
Sections:
3.40.040 Administration and collection.
3.40.060 Failure to pay when due.
3.40.070 Declaration of intent to conduct activity.
3.40.080 Records – Maintained accurately.
3.40.090 Records – Produced on request.
3.40.100 Records – Failure to produce for inspection.
3.40.110 Records – Jeopardy assessment for failure to produce.
3.40.120 Overpayment or underpayment.
3.40.130 Determination of tax due upon payment failure.
3.40.140 Additional to others.
3.40.150 Tax due and penalties – Debt to city.
3.40.160 Right of recovery by city or taxpayer.
3.40.170 Violation – Penalties.
3.40.010 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 may be given some other meaning. (Ord. 182 § 1, 1975).
3.40.020 Levy rate.
There is hereby 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 of money paid in cash, and paid for merchandise, actually awarded as 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 of money paid in cash, and paid for merchandise, actually awarded as 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 of money paid in cash, and paid for merchandise, actually awarded as prizes during the taxable period, multiplied by the rate of 10 percent;
D. Fishing Derbies. In the amount of the gross receipts therefrom, less the amount of money paid in cash, and paid for merchandise, actually awarded as prizes during the taxable period, multiplied by the rate of five percent;
E. Punchboards and Pull Tabs. In the amount of the net receipts from the operation, use, or patronage of the punchboards or pull tabs themselves, multiplied by the rate of three percent;
F. Card Playing. In the amount of the gross receipts received as fees charged persons for the privilege of playing in card games, multiplied by the rate of 10 percent. (Ord. 1117 § 1, 2024; Ord. 687 § 1, 2000; Ord. 330 § 1, 1987; Ord. 182 § 2, 1975).
3.40.030 Computed – Payment.
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 and a copy of the taxpayer’s quarterly license report as outlined and required under WAC 230-05-124, 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. Except as provided in subsection B of this section, 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. 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 subsection C of this section, 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 therefrom do not exceed $300.00 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 city clerk/treasurer.
C. Whenever it appears to the city clerk/treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the city clerk/treasurer, 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 clerk/treasurer deems appropriate under the circumstances. (Ord. 1117 § 2, 2024; Ord. 182 § 3, 1975).
3.40.040 Administration and collection.
A. Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the city clerk/treasurer. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the city council. 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 shall make forms available to the public in reasonable numbers in the city clerk/treasurer’s office during regular business hours.
B. 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. 182 § 4, 1975).
3.40.050 Method of payment.
Taxes payable hereunder 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. 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 clerk/treasurer be an acquittance or discharge of 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 to the office of the city clerk/treasurer, after notation by that office upon the return of the amount actually received from the taxpayer. (Ord. 182 § 5, 1975).
3.40.060 Failure to pay when due.
A. If full payment of any tax or fee due under this chapter is not received by the city clerk/treasurer on or before the date due, there shall be added to the amount due a penalty fee as follows:
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1. 1 – 10 days late |
10% of tax due |
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2. 11 – 20 days late |
15% of tax due |
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3. 21 – 31 days late |
20% of tax due |
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4. 32 – 60 days late |
25% of tax due |
but in no event shall the penalty amount be less than $10.00. In addition to this penalty, the city clerk/treasurer shall 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.
B. 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. 182 § 6, 1975).
3.40.070 Declaration of intent to conduct activity.
For the purposes of administration of this chapter and 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 clerk/treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the city clerk/treasurer together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than five days prior to conducting or operating the taxable activity. Failure to timely file shall not excuse any person, association or organization from any tax liability. (Ord. 182 § 7, 1975).
3.40.080 Records – Maintained accurately.
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, reasonable inspection and audit at any time, with or without notice, at the place where such records are kept; upon demand by the city clerk/treasurer or his designees, for the purpose of enforcing the provisions of this taxing chapter. (Ord. 182 § 8, 1975).
3.40.090 Records – Produced on request.
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 clerk/treasurer 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 five days following a request of the city clerk/treasurer that he do so; or
B. Bear the actual cost of inspection by the city clerk/treasurer 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 clerk/treasurer 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. 182 § 8, 1975).
3.40.100 Records – Failure to produce for inspection.
A taxpayer who fails, neglects or refuses to produce such books and records 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 clerk/treasurer. (Ord. 182 § 8, 1975).
3.40.110 Records – Jeopardy assessment for failure to produce.
This penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the city by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the city clerk/treasurer of the amount of tax so determined by jeopardy assessment, together with any penalty and interest, and the total of such amounts shall thereupon become immediately due and payable. (Ord. 182 § 8, 1975).
3.40.120 Overpayment or underpayment.
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 clerk/treasurer that within three years immediately preceding receipt by the city clerk/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 clerk/treasurer 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 taxes or other fees 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 city clerk/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. 182 § 9, 1975).
3.40.130 Determination of tax due upon payment failure.
If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the city clerk/treasurer is authorized to determine the amount of the tax payable, together with any penalty and 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, penalty and interest, and shall become immediately due and payable. (Ord. 182 § 10, 1975).
3.40.140 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 the city, except as herein otherwise expressly provided. (Ord. 182 § 11, 1975).
3.40.150 Tax due and penalties – Debt to city.
Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city 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. 182 § 12, 1975).
3.40.160 Right of recovery by city or taxpayer.
The right to 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 becomes 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. 182 § 13, 1975).
3.40.170 Violation – Penalties.
A. 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 clerk/treasurer pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed $300.00 or by imprisonment for a term not exceeding 90 days, or by both such fine and imprisonment.
B. 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. 182 § 14, 1975).