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HomeMy WebLinkAbout1847• ORDINANCE NO. i.N 7 AN ORDINANCE relating to gambling, providing for and levying, a tax upon the income derived from the conduct of certain activities; pro- viding for necessary administrative procedures for the collection and enforcement of such a tax and providing penalties for failure to time- ly pay the tax. WHEREAS, Chapter 9.46 RCW, as amended, allows qualified persons licensed by the Washington State Gambling Commission to ;conduct certain gambling activities within the jurisdiction of the City of Port Angeles subject to compliance with State law and the rules of the Washington State Gambling Commission; and WHEREAS, RCW 9.46.210 makes it the duty of law enforce- ment officials of this jurisdiction, among others, to enforce the provisions of Chapter 9.46 RCW thus imposing a financial burden upon Port Angeles; and WHEREAS, RCW 9.46.110 empowers each city to, by ordinance, .'provide for the taxing of any gambling activities authorized by RCW 9.46.030 which is conducted within its jurisdiction subject to certain maximum tax rates; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ANGELES, as follows: SECTION I DEFINITIONS For the purposes of this Ordinance the words and terms used shall have the same meaning as each has under Chapter 9.46 RCW, as amended, and under the rules of the Washington State Gambling.. Commission, Chapter 230 WAC, unless'otherwise specifically provided or the context in which they are used herein clearly in- dicates that they be given some other meaning. SECTION II PERSONS SUBJECT TO TAX - TAX RATE There is hereby levied upon all persons, associations and organizations conducting or operating within this jurisdic- tion any of the activities listed below a tax in the following' amounts to be paid to the City of Port Angeles, Washington: (a) Bingo, in the amount of the gross receipts there- from, less the amount of money paid in cash, and paid for merchan- dise, actually awarded as prizes during the taxable period, mul- tiplied by the rate of ten percent. (b) Raffles, in the amount of the gross receipts therefroi less the amount of money paid in cash, and paid for merchandise, 'actually awarded as prizes during the taxable- period, multiplied by the rate of ten percent. (c) Amusement games, in the amount of the gross receipts therefrom, less the amount of money paid in cash, and paid for merchandise, actually awarded as prizes during the taxable period, multiplied by the rate of ten percent. (d) Any punchboards or pull tabs, in the amount of five - percent of the gross receipts directly from the operation of the punchboards or pull tabs themselves. SECTION III TAX TO BE COMPUTED AND PAID QUARTERLY - EXCEPTIONS Each of the various taxes imposed by this Ordinance shall be computed on the basis of activity during each calendar quarter year, shall be due and payable in quarterly installments, and, remittance therefore, together with return forms, shall be made to the City of Port Angeles, Washington, on or before the last day of the month next succeeding the quarterly period in which the tax accrued, that is, on January 31, April 30, July 31, and Octobe 31 of each year: PROVIDED that the following exceptions to this. payment schedule shall be allowed, or required: (a) Except as provided in (b) below, whenever any person, association or organization taxable hereunder conducting or . operating a taxable activity on a regular basis discontinues operation of that taxable activity for a period of more than six consecutive months, or quits business, sells out, or otherwise disposes of its business, or terminates the business, any tax due hereunder, shall become due and payable, and such taxpayer shall, within then day thereafter, make a return and pay the tax due. (b) It is recognized that some bona fide charitable or bona fide nonprofit organization taxpayers will be conducting or operating taxable activities only upon an occasional and random basis. Except as provided in (c) below, when such a taxpayer conducts only one taxable activity during any calendar quarter, the duration of each such activity does not exceed five consecutive calendar days, and the gross receipts therefrom do not exceed $50.00 per quarter, that taxpayer need not remit th tax due with a return therefor until or on before January 31 -of the year following the year in which the activity took place. Such return shall be made upon a special form to be supplied by the Finance Director. First payment and returns under this sub- section shall be made on or before January 31, 1976. (c) 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 30 days notice to the taxpayer, is authorized to require that taxpayer to remit taxes and returns at such shorter intervals than quarterly or annually, as the Finance Director shall deem appropriate under the circumstances. 3 SECTION IV ADMINISTRATION AND COLLECTION OF TAX Administration and collection of the various taxes imposed by this Ordinance shall be the responsibility of the Finance Director. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the Finance. Director. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete. The Finance Director is authorized, but not required, to mail to taxpayers forms for returns. Failure of the taxpayer to receive such a form shall not excuse a taxpayer from making the return and timely paying all taxes due. The Finance Director shall make forms available to the public in reasonable numbers in the Finance Department during regular business hours. In addition to the return form, a copy of the taxpayer's quarterly report to the Washington State Gambling Commission re- quired by WAC 230 -08 for the period in which the tax accrued, shall accompany remittance of the tax amount due. SECTION V METHOD OF PAYMENT Taxes payable hereunder shall be remitted to the Finance Director on or before the time required by bank draft, certified check, cashier's check, personal check, money order, or in cash. If payment is made by draft or check, the tax shall not be deeme paid until the draft or check is honored in the usual course of business, nor shall the acceptance of any sum by the Finance Director be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return, and copy of quar- terly report to the Washington State Gambling Commission, shall b 4 • filed in the office of the Finance Director after notation by that office upon the return of the amount actually received from the taxpayer. SECTION VI FAILURE TO MAKE TIMELY PAYMENT OF TAX OR FEE If full payment of any tax or fee due under this Ordinance is not received by the Finance Director on or before the date due, there shall be added to the amount due a penalty fee as follows: (a) 1 - 10 days late - 3% of tax due (b) 11 - 20 days late - 6% of tax due (c) •21 - 31 days late - 9% of tax due (d) 32 - 60 days late -12% of tax due but in no event shall the penalty amount be less than $10.00. In addition to this penalty, the Finance Director may charge the taxpayer interest at the annual rate of 12% on all taxes and fees due for the time that said amounts are past due. Failure to make payment in full of all tax amounts, penalties and interest within 60 days following the day the tax amount initially became due shall be both a civil and a criminal violation of this section. SECTION VII NOTICE OF INTENTION TO ENGAGE IN ACTIVITY. TO BE FILED In order that the, City of Port Angeles may identify those persons who are subject to taxation under this Ordinance, each ..person, association or organization shall file with the Finance Director a sworn Declaration of Intent to conduct an activity taxable under this Ordinance upon a form to be prescribed by the Finance Director together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than 10 days prior to conducting or operating the taxable activity. No fee shall be charged for such 5 filing, which is not for the purpose of regulation of this activi but for the purposes of administration of this taxing Ordinance only. Failure to timely file shall not excuse any person, associ tion or organization from any tax liability. SECTION VIII RECORDS REQUIRED Each person, association, or organization engaging in an activity taxable under this Ordinance shall maintain records respecting that activity which truly, completely and accurately disclose all information necessary to determine the tax- payer's tax liability hereunder during each base tax period. Such records shall be kept and maintained for a period of not less than three years. In addition, all information and items required by the Washington State Gambling Commission under WAC 230 -08, and the United States Internal Revenue Service respecting taxation, shall be kept and.maintained for the periods required by those agencies. 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 demand by the Finance Director or his designees, for the purposes of enforcing the provisions of this taxing Ordinance. Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this section. in this jurisdiction so that the Finance Director may examine them conveniently, the taxpayer shall either: (a) Produce all of the required books, records or items within this jurisdiction for such inspection within ten days following a request of the local official that he do so; or (b) Bear the actual cost of inspection by the Finance Director or his designee, at the location at which such books, records or items are located, provided that a taxpayer choosing to beat these costs shall pay in advance to the Finance Departmer the estimated cost thereof, including but not limited to, round trip fare by the most rapid means, lodging, meals, and indicentaJ expenses. The actual amount due, or to be refunded, for expense: shall be determined following said examination of the records. A taxpayer who fails, neglects or refuses to produce such books or recordswhether within or without this jurisdiction, in addition to being subject to other civil and criminal penalties provided by this Ordinance, shall be subject to a jeopardy fee or tax assessment by the Finance Director. This penalty fee or jeopardy assessment shall be deemed prima facia correct and shall be the amount of fee or tax owing the Finance Department by the taxpayer unless he can prove otherwise by competent evidence. The taxpayer shall be notified by mail by Finance Director of the amount of tax so determined by jeopardy assessment, together with any penalty and /or interest and the total of such amounts shall thereupon become immediately due and payable. SECTION IX OVERPAYMENT OR UNDERPAYMENT OF TAX If upon application by'a taxpayer for a refund or for an audit of his records, or upon any exaimnation of the returns or records of any taxpayer, it is determined by the Finance Director that within three ye-4s- 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 the three years immediately preceding the commencement by 7 . 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 of'Port Angeles within such period of three 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 with respect to the Finance Director more than three years before the date of such application or examination; or (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 or fees, and it shall be a separate, additional violation of this Ordinance, both civil or crimina, if the taxpayer fails to make payment in full within ten calendar days of such mailing. SECTION X FAILURE TO MAKE RETURN If any taxpayer fails, neglects or refuses to make and file his return as and when required under this Ordinance, the Finance Director is authorized to determine the amount of tax payable, together with any penalty and /or interest assessed under the provisions of this Ordinance, and by mail to notify such taxpayer of the amount'so determined, which amount shall thereupon become the tax and penalty and /or interest and shall become immediately due and payable. SECTION XI FINANCE DIRECTOR TO MAKE RULES The Finance Director shall have the power, and it shall be his duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this Ordinance or with 8 - superior law, for the purpose of carrying out the provisions here- of, and it shall be unlawful to violate or fail to comply with any such rule or regulation. SECTION XII TAXES, PENALTIES AND FEES CONSTITUTE DEBT TO MUNICIPALITY Any tax due and unpaid under this Ordinance and all penal- ties or fees shall constitute a debt to the City of Port Angeles, a municipal corporation, and may be collected by court proceed- ings the same as any other debt in• like amount which shall be in addition to all other existing remedies. SECTION XIII LIMITATION ON RIGHT TO RECOVERY The right of recovery by the City of Port Angeles from the taxpayer for any tax provided hereunder shall be outlawed after the expiration of three calendar years from the date said tax became due. The right of recovery against the City of Port Angele because of overpayment of tax by any taxpayer shall be outlawed after the expiration of three calendar years from the'date such payment was made. SECTION XIV VIOLATION - PENALTIES Any person violating or failing to comply with any of the provisions of this Ordinance or any lawful rule or regulation adopted by the Finance Director pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed• three hundred dollars ($300.00), or by imprisonment in the Port Angeles City jail for a term not exceeding 90 days, or by both such fine and imprisonment. Any taxpayer who engages in, or carries on, any gambling activity subject to a tax hereunder without having complied - 9 - • ,with the provisions of this Ordinance shall be guilty of a vio- lation of this Ordinance for each day during which the gambling activity is carried on. SECTION XV SEVERABILITY If any provision or section of this Ordinance shall be held void or unconstitutional, all other parts, provisions and sections of this Ordiance not expressly so held to be void or unconstituitional shall continue in full force and effect. SECTION XVI EFFECTIVE DATE This Ordinance shall take effect and be in force on the /a day of , 1975, and the first taxes under this Ordinance shall be due on the 30th day of April, 1975. PASSED by the City Council of the City of Port Angeles and approved by its Mayor at a regular meeting of the Council held on the 18th day of February, 1975. ATTEST: = *' City Clerk . Approved as 42 form: City Attornby PUBLISHED: �i` • v�� „ 10 - Mayor