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HomeMy WebLinkAboutOrdinance 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. P,lemtul muchment310rdinanco No 2R,gambling tac.doc I 1 (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 Plcmnil atuchnunts\Qrdinance No 26,lyttnbling tax.dot 2 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 F.Ncmiil MuchmemitOrdinance No 28,g mbling tax.dot 3 f"1 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 P:knnil zio nnciiis.Orllnnnce No 28,gambling Inx.d e 4 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 P-lemeil mt chnicti00tdImince:io 28,g+rr,lira mx,&oc 5 Date of Publication: /141zeh 25 2603 Effective Date: P:%c ai1 asmdimcrossOrdincnce No 28,gambling tme.doc 6