Ordinance 03-028 Provides Gambling Taxation CITY OF SPOKANE VALLEY
SPOKANE COUNTY, WASHINGTON
ORDINANCE NO. 28
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY,
WASHINGTON, PROVIDING FOR THE TAXATION OF CERTAIN GAMBLING
ACTIVITIES, PROVIDING FOR COLLECTION AND PENALTIES FOR VIOLATION
THEREOF.
WHEREAS, RCW 9.46.110 cities to provide for the taxing of any gambling activities
within its.jurisdiction; and
WHEREAS, the City Council of the City of Spokane Valley finds that it is in the best
interest of the City to impose a gambling tax on certain gambling activities.
NOW, THEREFORE, the City Council of the City of Spokane Valley, Spokane County,
Washington, do ordain as follows:
Section 1. Definitions.
For the purposes of this Ordinance, the terms used herein shall have the
meaning provided in Chapter 9.46 RCW, as the same now exists or may hereafter be amended,
and as further provided by the rules and regulations of the Washington State Gambling
Commission, as set forth in Chapter 230 of the Washington Administrative Code, as the same
now exists or may hereafter be amended, unless otherwise specifically provided herein.
Section 2. Imposition of Tax.
Pursuant to RCW 9.46.110, as the same now exists or may hereafter be
amended, there is levied upon all persons, associations or organizations conducting or operating
in the City of Spokane Valley any of the activities listed below a tax to be paid to the City of
Spokane Valley, in the amount hereinafter specified:
A. Bingo and Raffles
(1) A tax in the amount equal to five percent (5%) of
the gross receipts from a bingo game or raffle, less the amount awarded as cash or
merchandise prizes.
13. Punchboards and Pulltabs
(1) Commercial stimulant operators shall pay a
tax in an amount equal to five percent (5%) of the gross receipts from the
operation of punchboards and pulltabs.
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(2) Dona fide charitable or nonprofit
organizations shall pay a tax in an amount equal to ten percent (10%) of
the gross receipts from the operation of the games, less the amount
awarded as cash or merchandise prizes.
C. Social Card Playing
(1) Operators shall pay a tax equal to ten percent (10%)
of the gross revenue from such card games.
D. Amusement Games
(1) Amusement games authorized for operation
pursuant to the provisions of the Washington Administrative Code shall be
subject to the levy of a tax in the amount not to exceed two percent (2%) of the
gross receipts from the amusement game, less the amount awarded as prizes, and
shall be equal to the amount of actual costs and expenses incurred for
enforcement of Chapter 9.46 RCW by the City of Spokane Valley.
Section 3. Exemptions - Charitable and Nonprofit Organizations.
A. Bingo and amusement games conducted by a bona fide
charitable or nonprofit organization (as defined in RCW 9.46.0209) shall be exempt from
the tax imposed by Section 2, when such organization has no paid operating or
management personnel and its gross receipts from bingo or amusement games, or a
combination thereof, do not exceed $5,000 per year, less the amount awarded as cash or
merchandise prizes.
B. No tax may be imposed on the first $10,000 of gross
receipts, less the amount awarded as cash or merchandise prizes, from raffles conducted
by any bona fide charitable or nonprofit organization.
Section 4. Payment of Tax.
The tax imposed by this Ordinance shall be due and payable in quarterly
installments and remitted to the City Finance Director together with the required information on
the return form(s), as prescribed by the City, on or before the 15th day of month succeeding the
quarterly period in which the tax accrued, unless the 15th day of the month is a non-business day
or holiday, then said tax shall be due and payable on the next business day. Any tax remaining
unpaid on the day following its applicable due date shall be delinquent, PROVIDED
HOWEVER:
A. Whenever an entity subject to the tax imposed by this
Ordinance ceases the taxable activity for a period of more than two consecutive
calendar months the tax shall become due and payable on the 10th calendar day
following the last date of business, unless the 10th day is a non-business day or
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holiday, then said tax shall be due and payable on the next business day.
B. Whenever the City Manager, determines based upon a
history of delinquent payment or an assignment for the benefit of creditors, or
such other evidence that the ability of the City of Spokane Valley to collect the
tax owing from the taxpayer may be in jeopardy, the City, after not less than ten
days' written notice to the taxpayer, may require the taxpayer to remit taxes
owing hereunder at a shorter interval than prescribed herein. Notice shall be
given by regular and certified mail. In the event that the certified mail is refused
by the taxpayer and returned to the City of Spokane Valley, notice shall be
deemed effective upon the date of mailing of the notice by regular mail.
Section 5. Administration of Collection.
The City Finance Director is hereby authorized to create a gambling tax
form, which shall be available to the public in reasonable numbers at the City Office during
regular business hours. Taxes paid hereunder shall be accompanied by the gambling tax return
form and a copy of the taxpayer's quarterly report to the Washington State Gambling
Commission for the period in which the tax has accrued. The taxpayer shall be required to swear
and affirm under penalty of perjury under the laws of the State of Washington that the
information given in the return is true, accurate and complete.
The City Finance Director is authorized, but not required, to mail to
taxpayers gambling tax return forms for remitting the tax owing hereunder. Failure of the
taxpayer to receive such a form shall not excuse timely payment of all taxes due and owing
hereunder.
Section 6. Delinquent Taxes - Lien Authorized - Collection Actions.
Whenever any tax imposed hereunder shall become delinquent, the City
Attorney is authorized to file a lien upon the personal and real property used in the gambling
activity taxable by this Ordinance in the same manner as provided for under RCW 84.60.010, as
the same now exists or may hereafter be amended. Pursuant to RCW 9.46.110 as the same now
exists or may hereafter be amended, the lien shall attach on the date the tax becomes due and
shall relate back and have priority against the real and personal property to the same extent as ad
valorem taxes. The City Attorney is further authorized to bring a civil action to collect fees,
interest, penalties and delinquent taxes owing hereunder pursuant to RCW 9.46.350, as the same
now exists or may hereafter be amended.
Section 7. Late Penalty - Interest.
A. If a payment of any tax imposed hereunder becomes
delinquent, there shall be added to said tax a late penalty in an amount as may be
established from time to time by Resolution of the City Council.
B. Li addition to an assessment of a late penalty as prescribed
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by Section 7(A), any quarterly tax payment not paid by the due date shall bear interest at
the rate of twelve percent (12%) per annum or the maximum legal rate, whichever is
greater.
Section 8. Notice of intention to Engage in Gambling Activity - Filing with City.
For the purposes of identifying those subject to the taxes imposed by this
Ordinance, each person, association or organization intending to conduct or operate any
gambling activity which requires a license pursuant to Chapter 9.46 RCW as the same exists or
may hereafter be amended, shall no later than five days prior to the commencement of any such
gambling activity, file with the City Finance Director a sworn declaration of intent to conduct or
operate such activity on a form to be prescribed by the City, together with a copy of any license
issued for that gambling activity by the Washington State Gambling Commission or its designee.
Section 9. Inspection and Audit of Premises. Paraphernalia. Books and Records.
A. The premises and paraphernalia, and all the books and
records of any person, association or organization conducting gambling activities
pursuant to Chapter 9.46 RCW, as now existing or hereafter amended, and any person,
association or organization receiving profits therefrom or having any interest therein shall
be subject to inspection and audit at any reasonable time, with or without notice, upon
demand, by the Chief of Police, or his or her designee for the purpose of determining
compliance or noncompliance with the provisions of this Ordinance, Chapter 9.46 RCW,
and any rules or regulations adopted thereunder. A reasonable time for the purpose of
this section shall be: (1) if the items or records to be inspected or audited are located
anywhere upon a premise, any portion of which is regularly open to the public or
members and guests, then at any time when the premises are so open, or which they are
usually open; or(2) if the items or records to be inspected or audited are not located upon
the premises set out in subsection (1) above, then at any time between the hours of 8:00
a.m. and 9:00 p.m., local time, Monday through Friday.
B. Each person, organization or association engaging in any
gambling activity taxable under this Ordinance shall maintain records respecting that
activity which truly, completely and accurately disclose all information necessary for the
City 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 five (5) years.
C. It shall be the responsibility of each individual taxpayer,
and for organizations, associations, or corporations, the responsibility of each owner,
officer, director or manager thereof, to make available at the times set forth above such
financial records and information as the City or his or her designee may require in order
to determine full compliance with this Ordinance.
Section 10. Penalties.
A. Whoever, in any application for a license or in any book or
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record required to be maintained by this Ordinance or by the Washington State Gambling
Commission or in any report required to be submitted to said Commission or to the City
of Spokane Valley hereunder, shall make any false or misleading statement, or make any
false or misleading entry or willfully fail to maintain or make any entry required to be
maintained or made, or who willfully refuses to produce for inspection by the
Commission or its designee, any book, record or document required to be maintained or
made by Federal or state law, or this Ordinance, shall be guilty of a gross misdemeanor
subject.to the penalties set forth in RCW 91.20.021, as now existing or hereafter
amended.
13. RCW 9.46.185, 9.46.190 and 9.45.195, as now existing or
hereafter amended, are hereby adopted by this reference as if set forth fully herein
verbatim.
Section 11. 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 12. Effective Date.
This Ordinance shall be in full force and effect .five of the official date of
incorporation.
Passed By the City Council of the City of Spokane Valley on January ` , 2003.
Mayor, Michael DeVlem. g
ATTEST:
Interim City Clerk, Ruth Muller
Approved As To Form:
A/A.4_
lteri i City ; o ey, Stanley . Schwartz
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Date of Publication: /141zeh 25 2603
Effective Date:
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