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Ordinance 20-006 Defers Gambling Taxes CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO.20-006 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY WASHINGTON, DEFERRING REMITTANCE OF GAMBLING TAXES IMPOSED PURSUANT TO CHAPTER 3.25 SVMC DUE TO IMPACTS FROM THE COVID-19 PANDEMIC, AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO. WHEREAS, pursuant to chapter 3.25 SVMC, the City has imposed a tax on certain gambling activities (the"gambling tax") occurring within the City of Spokane Valley("City"), including bingo and raffle games, punchboards and pulltabs, social card playing, and amusement games; and WHEREAS, pursuant to SVMC 3.25.040,the gambling taxes collected by entities operating such gambling activities is due and payable in quarterly installments and shall be remitted to the City on or before the 30th day of the month succeeding the quarterly period in which the tax accrued; and WHEREAS, since early 2020, the City, State of Washington, and entire United States have been experiencing negative effects due to the ongoing COVID-19 pandemic; and WHEREAS, Washington State Governor Jay Inslee has signed and executed various executive orders which have prohibited public gatherings and resulted in the mandatory closure of many small businesses in the City, including those who provide activities subject to the gambling tax,with said orders materially and negative affecting the ability of these businesses to engage in all forms of their normal business; and WHEREAS, many of these affected businesses are currently unable to pay the City the first quarter gambling taxes due to interruption to their normal operations and revenue stream; and WHEREAS, the City desires to defer collection of the gambling taxes due and owing for the first and second quarters of 2020 to a Iater date in an effort to assist these small business owners to help them avoid going out of business. NOW, THEREFORE, the City Council for the City of Spokane Valley, Spokane County, Washington do ordain as follows: Section 1. Intent. The intent of this Ordinance is to temporarily change the time period by which gambling taxes imposed pursuant to chapter 3.25 SVMC for the first and second quarters of 2020 are required to be remitted to the City in order to allow the businesses conducting these activities additional time to remit the taxes. Section 2. Deferred period of remittance for first and second quarter taxes. All taxes collected and owing pursuant to chapter 3.25 SVMC for first quarter of 2020 shall be due, payable, and remitted to the City no later than September 30, 2020. All taxes collected and owing pursuant to chapter 3.25 SVMC for second quarter of 2020 shall be due,payable,and remitted to the City no later than November 30,2020. Any penalties, liens, or other collection actions for delinquent payment of 2020 first quarter or second quarter taxes shall be determined and applied based upon such payment due dates set forth herein rather Ordinance 20-006--Gambling Tax Collection Page 1 of 2 than the standard first or second quarter due dates. Taxes collected and owing pursuant to chapter 3.25 SVMC for third and fourth quarter of 2020 shall be paid as required pursuant to SVMC 3.25.040. Nothing herein shall be construed to waive any gambling taxes due and owing under chapter 3.25 SVMC. Section 3. Not codified. This Ordinance shall not be codified because the effect is of temporary and short duration and shall solely affect the taxes imposed, due,and owing for first and second quarters of 2020. Section 4. Other Section Unchanged. Except as otherwise specifically referenced and provided herein,all sections and provisions of chapter 3.25 SVMC shall remain unchanged and in full force and effect. Section 5. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 6. Effective Date. This Ordinance shall be in full force and effect five days after publication of this Ordinance or a summary thereof in the official newspaper of the City of Spokane Valley as provided by law. PASSED by the City Council this 14th day of April,2020. ATTEST: J Ben Wick,Mayor (Y.4 // 24,;VII Christine Bainbridge, City Clerk Approved As To Form: � l O iee of he Cit orae Date of Publication: 04-17-2020 Effective Date: 04-22-2020 Ordinance 20-006—Gambling Tax Collection Page 2 of 2