Source: http://www.codepublishing.com/wa/kent/html/Kent03/Kent0321.html
Timestamp: 2013-06-19 21:52:37
Document Index: 153524693

Matched Legal Cases: ['§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 5', '§ 3', '§ 1', '§ 5', '§ 4', '§ 1', '§ 5', '§ 1', '§ 2', '§ 1', '§ 5', '§ 1', '§ 1', '§ 1', '§ 1', '§ 3', '§ 5', '§ 8', '§ 1', '§ 5', '§ 1', '§ 4', '§ 6', '§ 1', '§ 5']

Chapter 3.21 GAMBLING TAX
Chapter 3.21GAMBLING TAX*
3.21.010 Gambling activities and tax. 3.21.020 Administration and collection. 3.21.030 Filing. 3.21.040 Tax due. 3.21.041 Administration and collection of tax. 3.21.042 Method of payment. 3.21.043 Failure to make timely payment of tax or fee. 3.21.050 Records required. 3.21.051 Overpayment or underpayment of tax. 3.21.052 Failure to make return. 3.21.053 Tax additional to others. 3.21.054 Finance director to make rules. 3.21.055 Taxes, penalties, service charges, and fees constitute debt to municipality. 3.21.060 Penalties. *State law reference(s) – Gambling, RCW 9.46.010 et seq.; authority to tax certain gambling activity, RCW 9.46.110.
3.21.010 Gambling activities and tax.
1. For bingo games and raffles, a tax rate of five (5) percent of the gross receipts received therefrom less the amount awarded as cash or merchandise prizes;
2. For amusement games, a tax rate of two (2) percent of the gross receipts from any such amusement games less the amount awarded as prizes, which is an amount less than the actual amount of costs of enforcement by the city of the provisions of Chapter 9.46 RCW; 3. For punch boards and pull-tabs for bona fide charitable or nonprofit organizations and for commercial stimulant operators, a tax rate of ten (10) percent based on the gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes;
4. For social card games not prohibited by subsection (D) of this section, a tax rate of eleven (11) percent of the gross revenue from such games.
C. Exemption from tax. No tax shall be imposed under the authority of this chapter on bingo or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in Chapter 9.46 RCW, which organization has no paid operating or management personnel and has gross receipts from bingo or amusement games, or any combination thereof, not exceeding five thousand dollars ($5,000) per year less the amount awarded as cash or merchandise prizes. For raffles conducted by bona fide charitable or nonprofit organizations, no tax shall be imposed under this chapter on the first ten thousand dollars ($10,000) per year of gross receipts, less the amount awarded as cash or merchandise for prizes.
D. Social card games – Prohibited – Exceptions. Pursuant to RCW 9.46.295 and to the city’s police power and legislative authority, the operation or conduct of social card games by any person, association, or organization as a commercial stimulant, as defined in Chapter 9.46 RCW, is prohibited within the city of Kent; provided, that house-banked social card game establishments licensed by the Washington State Gambling Commission, lawfully operating in an area as described in RCW 9.46.295 and annexed by the city of Kent, and which are in compliance with the provisions of this chapter, may continue to operate house-banked social card games as a commercial stimulant under said license and renewals thereto at the original licensed location or at another location within the same annexation area; provided, however, that a relocated establishment must otherwise comply with applicable land use and Gambling Commission regulations. It is further provided that bona fide charitable or nonprofit organizations, as defined in Chapter 9.46 RCW, may operate or conduct social card games if said social card games have been duly licensed by the Washington State Gambling Commission and if they are otherwise operated or conducted in compliance with the provisions of this chapter. A violation of this section shall not be subject to KCC 1.01.140.
(Ord. No. 1888, § 1; Ord. No. 2050, § 1; Ord. No. 3362, § 1, 9-16-97; Ord. No. 3460, § 1, 6-1-99; Ord. No. 3949, § 1, 4-6-10. Formerly Code 1986, § 5.16.010)
3.21.020 Administration and collection.
(Ord. No. 1888, § 3; Ord. No. 3362, § 1, 9-16-97. Formerly Code 1986, § 5.16.020)
3.21.030 Filing.
For the purpose of identifying who shall be subject to the tax imposed by this chapter, any person, association or organization intending to conduct or operate any gambling activity authorized by RCW 9.46.010 et seq. shall, prior to commencement of any such activity, file with the finance director a sworn declaration of intent to conduct or operate such activity, together with a copy of the license issued in accordance with RCW 9.46.010 et seq. Thereafter, for any period covered by such state license or any renewal thereof, any person, association, or organization shall, on or before the fifteenth day of the month following the end of the quarterly period in which the tax accrued, file with the finance director a sworn statement on a form to be provided and prescribed by the city council for the purpose of ascertaining the tax due for the preceding quarterly period.
(Ord. No. 1888, § 4; Ord. No. 3362, § 1, 9-16-97. Formerly Code 1986, § 5.16.030)
3.21.040 Tax due.
A. Quarterly tax reporting and payment. Except as provided in subsection (B) of this section for taxes due in excess of fifty thousand dollars ($50,000) annually, the tax imposed by this chapter shall be due and payable in quarterly installments and remittance therefor, together with the return forms, shall be made on or before the final day of the month immediately after the quarterly period in which the tax accrued. Such payments shall be due on January 31, April 30, July 31, and October 31 of each respective year.
1. Whenever any person, association or organization taxed under this chapter quits business, sells out or otherwise disposes of its business, or terminates the business, any tax due shall become due and payable immediately, and such taxpayer shall, within ten (10) days after the last date the establishment is open for business, file a return and pay the tax due.
2. Whenever it appears to the finance director that the collection of taxes from any person, association or organization may be in jeopardy, the finance director, after not less than ten (10) days’ notice to the taxpayer, is authorized to require that the taxpayer remit taxes due and returns at such shorter intervals than otherwise provided, as the finance director deems appropriate under the circumstances.
B. Monthly tax reporting and payment. The tax imposed by this chapter shall be due and payable in monthly installments when the gambling taxes due in the previous calendar year were in excess of fifty thousand dollars ($50,000). In that event, the tax remittance, together with the return forms, shall be made on or before the final day of the month immediately after the month in which the tax accrued.
1. Whenever any person, association, or organization taxed under this chapter quits business, sells out, or otherwise disposes of its business, or terminates the business, any tax due shall become due and payable immediately, and such taxpayer shall, within ten (10) days after the last date the establishment is open for business, file a return and pay the tax due.
2. Whenever it appears to the finance director that the collection of taxes from any person, association, or organization may be in jeopardy, the finance director, after not less than ten (10) days’ notice to the taxpayer, is authorized to require that the taxpayer remit taxes due and returns at such shorter intervals than otherwise provided, as the finance director deems appropriate under the circumstances.
(Ord. No. 3362, § 1, 9-16-97; Ord. No. 3949, § 2, 4-6-10)
3.21.041 Administration and collection of tax.
C. 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. No. 3362, § 1, 9-16-97)
3.21.042 Method of payment.
3.21.043 Failure to make timely payment of tax or fee.
1. If not paid on or before the first day of the second month next succeeding the quarterly period in which the tax accrued, ten (10) percent of the total tax due with a minimum penalty of five dollars ($5).
2. If not paid on or before the first day of the third month next succeeding the quarterly period in which the tax accrued, fifteen (15) percent of the total tax due with a minimum penalty of ten dollars ($10).
3. If not paid on or before the first day of the fourth month next succeeding the quarterly period in which the tax accrued, twenty (20) percent of the total tax due with a minimum penalty of twenty dollars ($20).
B. Service charge. In addition to the penalties imposed under subsection (A) of this section, a service charge of one (1) percent of the amount of the unpaid balance or two dollars ($2.00), whichever amount is greater, will be imposed one (1) month from the date payment was due, and at the end of each succeeding monthly period, until all past due amounts are paid in full.
(Ord. No. 1888, § 5; Ord. No. 2034, § 1; Ord. No. 2602, § 1; Ord. No. 3059, § 1, 8-4-92; Ord. No. 3362, § 1, 9-16-97; Ord. No. 3949, § 3, 4-6-10. Formerly Code 1986, § 5.16.040)
3.21.050 Records required.
A. 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 (3) 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.
B. All books, records, and other items required to be kept and maintained under this section shall be subject to, and immediately made available for inspection and audit at any time, with or without notice, at the place where such records are kept upon the demand of the finance director or his designee for the purpose of enforcing the provisions of this chapter.
1. Produce and make available for inspection in this jurisdiction all of the required books, records, or other items within ten (10) days following a request by the auditor that he do so;
2. Bear the actual cost of inspection by the auditor or his designee at the location of which books, records or items are located; provided, that a taxpayer choosing to bear these costs shall pay in advance to the finance director the estimated costs thereof, including but not limited to, round trip fare by the most rapid means, lodging, meals, and incidental expenses. The actual amounts due or to be refunded for expenses shall be determined following the examination of the records.
(Ord. No. 1888, § 8; Ord. No. 3362, § 1, 9-16-97. Formerly Code 1986, § 5.16.050)
3.21.051 Overpayment or underpayment of tax.
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 finance director that within three (3) years immediately preceding receipt by the finance director of the application by the taxpayer for a refund or an audit, or in the absence of such an application, within three (3) years immediately preceding the commencement by the finance director 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 (3) 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 for any excess paid more than three (3) 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 finance director 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 ten (10) calendar days of such mailing.
3.21.052 Failure to make return.
3.21.053 Tax additional to others.
3.21.054 Finance director to make rules.
3.21.055 Taxes, penalties, service charges, and fees constitute debt to municipality.
Any tax due and unpaid under this chapter and all penalties, service charges, or fees shall constitute a debt to the city. The city may, pursuant to Chapter 19.16 RCW, use a collection agency to collect outstanding debts, or it may seek collection by court proceedings, which remedies shall be in addition to all other existing remedies. Further, as provided for in RCW 9.46.110(4), as now enacted or hereafter amended, taxes and associated penalties and charges imposed under this chapter shall become a lien upon personal and real property used in the gambling activity in the same manner as provided for under RCW 84.60.010 for property taxes. The lien shall attach on the date the tax becomes due and shall relate back and have priority against real and personal property to the same extent as ad valorem taxes. (Ord. No. 3362, § 1, 9-16-97; Ord. No. 3949, § 4, 4-6-10)
3.21.060 Penalties.
Any person who shall fail or refuse to pay the tax as required in this chapter, or who shall wilfully disobey any rule or regulation promulgated by the city council under this chapter, shall be guilty of a misdemeanor and upon conviction shall be punished by imprisonment for not more than ninety (90) days or by a fine of not more than two hundred fifty dollars ($250) or by both such fine and imprisonment. Any such fine shall be in addition to the tax required. Officers, directors, and managers of any organization conducting gambling activities shall be jointly and severally liable for the payment of the tax and for the payment of any fine imposed under this chapter.
(Ord. No. 1888, § 6; Ord. No. 3362, § 1, 9-16-97. Formerly Code 1986, § 5.16.060)