Ordinance 04-037 Amends SVMC 3.25 Gambling Tax Regulations CiTY OF SPOKANE VALLEY
SPOKANE COUNTY WASHINGTON
ORDINANCE NO.04-037
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY,WASHINGTON,AMENDING
SPOKANE VALLEY MUNICIPAL CODE 3.25.020(B),GAMBLING TAX REGULATIONS FOR
THIN CITY OF SPOKANE VALLEY.
WHEREAS, RCW authorizes a city to provide for the taxing of any gambling activities within its
jurisdiction; and
WHEREAS, the City of Spokane Valley adopted Ordinance 03-028 on January 28, 2003, to be
effective upon the date of incorporation. Ordinance 03-028 was later codified into Spokane Valley
Municipal Code Chapter 3.25, Gambling Tax; and
WHEREAS, SVMC §3.25.020(B)(I) provides for the imposition of a tax on punchboard and
pulltab games for commercial businesses at the rate of 5%of gross receipts; and
WHEREAS, the intent of the Council in adopting SVMC §3.25.020(13)(1)was to impose a tax on
punchboard and pulltab games at the rate of five percent(5%) of gross receipts, less the amount awarded
as cash or merchandise prizes; and
WHEREAS, the amount of assessed tax based on the erroneous tax rate on punchboards and
pulltab games has resulted in a substantial increase in the amount of tax owed than was intended by the
Council at the time of adoption; and
WHEREAS, most commercial businesses operating punchboard and pulltab gaming since March
31, 2003, have paid tax amounts consistent with the methodology in place prior to incorporation, leaving
a significant arrcaragc in the amount of gambling tax owed for those businesses; and
WHEREAS, SVMC §3.25.020(13)(2)provides that bona tide charitable or nonprofit organizations
shall pay a tax on punchboard and pulltab games equal to 10% of the gross receipts, less the amount
awarded as cash or merchandise prizes; and
WHEREAS, it is the desire of the Council to impose a gambling tax on punchboard and pulltab
gaming that is identical for nonprofit, charitable or commercial businesses, to be equal to 5% of the gross
receipts from the operation of pulltabs and punchboards, less the amount awarded as cash or merchandise
prizes; and
WHEREAS, the Council desires to negate the effect of the unintentionally high tax burden on
these organizations by repealing SVMC §3.25.020(B) in its entirety, effective October 1, 2004, to be
replaced with a new provision, effective July I, 2007. This action is intended to result in the city
receiving, as of July 1, 2007, only that amount of tax revenue that was intended by the Council at the time
of original adoption of SVMC §3.25.020(B)(1).
NOW THEREFORE, the City Council of the City of Spokane Valley, Washington, ordains as
follows:
Section 1. Intent. The City of Spokane Valley declares that the intent of this Ordinance is to
repeal Spokane Valley Municipal Code §3.25.020(B) in its entirety, to be replaced with a new Spokane
Valley Municipal Code §3.25.020(B) that becomes effective in the future in a manner that makes uniform
the tax rate for all businesses engaged in pulltab and punchboard gaming.
Ordinance 04-037 Amending SVMC 3.25.020 Page 1 of 2
•
Section 2. SVMC §3.25.020(B) To Be Repealed. Spokane Valley Municipal Code
§3.25.020(B) which is repealed in its entirety effective October 1, 2004, states as follows:
B. Punchboards and Pulltabs.
1. Commercial stimulant operators shall pay a tax in an amount equal to five percent of the gross
receipts from the operation of punchboards and pulltabs.
2. Bona fide charitable or nonprofit organizations shall pay a tax in an amount equal to ten
percent of the gross receipts from the operation of the games, less the amount awarded as cash or
merchandise prizes.
Section 3. Replacement SVMC §3.25.0200. A new Spokane Valley Municipal Code
§3.25.020(B)shall become effective July 1,2007, and shall read as follows:
B. Punchboards and Pulltabs. All organizations, whether for profit, nonprofit or bona fide
charitable, shall pay a tax in an amount equal to five percent(5%)of the gross receipts from the operation
of punchboards and pulltabs, less the amount awarded as cash or merchandise prizes.
Section 4. Punchboard and Pulltab Tax Arrearage Payment. Those businesses obligated to
pay gambling taxes pursuant to SVMC §3.25.020(B)(t) between March 31, 2003 and October I, 2004
that have an arrearage on that tax obligation, shall have two options for payment. Each such business
may either make full payment on the arrearage on or before October 1, 2004, or, in the alternative, enter
into an agreement with the city to pay the arrearage in eleven (11) equal payments between October 1,
2004 and July 1, 2007. In the event an organization fails or refuses to pay its tax arrearage pursuant to
one of the two options, the city shall immediately be authorized to seek payment of the arrearage through
SVMC §3.25.060, or any other appropriate remedy available at law.
Section 5. Severabili . If any section, subsection, sentence or clause of this chapter is for
any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of this
chapter.
Section 6. Additional Provisions. The provisions of this chapter shall be in addition to and
not a substitute for or limited by any other applicable laws.
Section 7. Effective date. This Ordinance shall be in full force and effect five days after
publication of this Ordinance or a summary thereof occurs in the official newspaper of the City as
provided by law.
Approved this le day of September, 2004.
101
cMichael DeVleming, Mayo
l
Christine Bainbridge, City Clerk
Ap} oved m:
Deputb City Attorn , Cary P. riskell
Date of Publication: 9-24-04
Effective Date: 09-29-04
Ordinance 04-037 Amending SVMC 3.25.020 Page 2 of 2