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1790 - Ordinance - Repealing Ordinance 1086 and Reestablishing Provision for Tax for Gambling ActivitiesNOTICE OF CITY OF PORT ORCHARD ORDINANCE The following is a summary of an Ordinance approved by the Port Orchard City Council at their regular Council meeting held January 20, 2000. ORDINANCE NO. 1790 AN ORDINANCE OF THE CITY OF PORT ORCHARD, REPEALING ORDINANCE NO. 1086, AND REESTABLISHING PROVISION FOR TAX UPON CERTAIN GAMBLING ACTIVITIES AND PROVIDING FOR THE COLLECTION AND ENFORCEMENT OF SUCH TAX (POMC 5.28) Copies of Ordinance No. 1790 are available for review at the office of the City Clerk of the City of Port Orchard. Upon written request a statement of the full text of the Ordinance will be mailed to any interested person without charge. Thirty days after publication, copies of Ordinance No. 1790 will be provided at a nominal charge. City of Port Orchard Michelle Merlino Deputy Clerk Publish: Port Orchard Independent January 19,2000 ORDINANCE NO. 1790 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, REPEALING ORDINANCE NO. 1086. AND REESTABLISHING PROVISION FOR TAX UPON CERTAIN GAMBLING ACTIVITIES AND PROVIDING FOR THE COLLECTION AND ENFORCEMENT OF SUCH TAX. (POMC 5.28) WHEREAS, RCW 9.46, as amended, allows qualified persons licensed by the Washington State Gambling Commission to conduct certain gambling activities in the City of Port Orchard subject to compliance with state law and the rules of the Washington State Gambling Commission; and WHEREAS, RCW 9.46.110 empowers the City of Pori Orchard to tax certain gambling activities; and WHEREAS, the state legislature approved SSB5745 reducing the maximum gambling tax rates that cities can impose on bingo and raffles, effective January 1, 2000, and WHEREAS, it is the desire of the City Council to update city statutes to conform with state statutes, now, therefore THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. 5.28.010Title. That Port Orchard Municipal Code 5.28.010 shall read as follows: The ordinance codified in this chapter shall be known as the City of Port Orchard gambling ordinance. SECTION 2. 5.28.020Definitions. That Port Orchard Municipal Code 5.28.020 shall read as follows: The words and terms used in this chapter shall have the same meaning as each has under Chapter 9.46 RCW, as amended, and under WAC Title 230, as amended, unless otherwise specifically provided or the context in which they are used clearly indicates that some other meaning is intended. SECTION 3. 5.28.030Tax rates. That Port Orchard Municipal Code 5.28.030 shall read as follows: Effective January 1. 2000, there is levied upon all persons, associations and organizations conducting or operating within the city any of the activities listed below a tax in the following amount to be paid to the city: (1) Bingo. In the amount of gross receipts therefrom, less the amount of money paid in cash or for merchandise actually awarded as prizes during the taxable period. multiplied by the rate of five (5) percent. (2) Raffles. In the amount of gross receipts therefrom, less the amount of money paid in cash or for merchandise actually awarded as prizes during the taxable period, multiplied by the rate of five (5) percent. Ordinance No. 1790 Page 2 of 6 (3) Amusement Games. In the amount of the gross receipts therefrom, less the amount of money paid in cash or for merchandise acbally awarded as prizes during the taxable period, multiplied by the rate of two (2) percent; (4) derived directly from the operation of the punchboards or pull tabs; (5) charged persons for the privilege of playing card games; (6) Fundraising Events. In the amount of the gross receipts therefrom, less the amount of money paid in cash or for merchandise actually awarded as prizes during the taxable period, multiplied by the rate of five (5) percent. SECTION 4. 5.28.040Exemption from taxation (1) No tax shall be imposed under the authority of this ordinance 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 this ordinance, which organization has no paid operating or management personnel and has gross receipts from bingo or amusement games, or a combination thereof, not exceeding five thousand dollars per year, less the amount awarded as cash or merchandize prizes. (2) No tax shall be imposed on the first ten thousand dollars of gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by any bona fide charitable or nonprofit organization as defined in this ordinance. (3) Any bona fide charitable or nonprofit organization desiring to obtain this exemption must make a verified application for exemption to the City Treasurer for each calendar year during which the exemption is sought. Such application shall set forth the facts and circumstances by which the organization qualifies for the exemption. SECTION 5. 5.28.050Quarterly tax payments - Exemptions. Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter year, shall be due and payable in quarterly installments, and remittance therefor together with return forms shall be made to the City of Port Orchard on or before the last day of the month next succeeding the quarterly period in which the tax accrued, i.e., on January 31st, April 30th. July 31st and October 31st of each year; provided the following exceptions to the above payment schedule shall be allowed or required: Punchboards or Pull Tabs. In the amount three (3) percent of the gross receipts Card Games. In the amount of ten (10) percent of the gross receipts received as fees That Port Orchard Municipal Code 5.28.040 shall read as follows: That Port Orchard Municipal Code 5.28.050 shall read as follows: (1) Except as provided in subsection (2) of this section, 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 four consecutive weeks, 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 10 days thereafter. make a return and pay the tax due. (2) 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 subsection (3) of this section, when such taxpayer conducts only one taxable activity during any calendar quarter, the duration of each such activity does not exceed 15 consecutive calendar days, and the gross receipts therefrom do Ordinance No. 1790 Page 3 of 6 not exceed $1,500, that taxpayer need not remit the tax due with a return therefor until on or before January 31st of the year following that year in which the activity took place. (3) Whenever it appears that the collection of taxes from any person, association or organization may be in jeopardy, the City Treasurer, after not less than five days' notice to the taxpayer, is authorized to require that taxpayer to remit taxes. and return at such shorter intervals than quarterly or annually, as the City Treasurer shall deem appropriate under the circumstances. SECTION 6. 5.28.060Administration and collection. (1) Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the City Treasurer. Remittance of the amount due shall be accompanied by a completed retum form prescribed and provided by the City Treasurer. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete. (2) The City Treasurer 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 City Treasurer shall make forms available to the public during regular business hours. (3) In addition to the return form, a copy of the taxpayer's quarterly report to the Washington State Gambling Commission as required by Chapter 230-08 WAC, for the period in which the tax accrued. shall accompany the remittance of the tax amount due. The return. and copy of the quarterly report to the Washington State Gambling Commission, shall be filed in the City Treasurer's office after notation by that ofke upon the retum of the amount actually received from the taxpayer. SECTION 7. 5.28.070Method of payment. (1) Taxes payable hereunder shall be remitted to the City Treasurer on or before the time required. If payment is made by draft or check, the tax shall not be deemed paid until the draft or check is honored in the usual course of business, nor shall the acceptance of any sum by the City Treasurer be an acquittance or discharge of the tax unless the amount paid is the full amount due. (2) Taxes imposed under this ordinance become a lien upon personal and real properly used in the gambling activity in the same manner as provided for under RCW 84.60.010. The lien shall attach on the date the tax becomes due and shall relate back and have priority against real and personal properly to the same extent as ad valorem taxes. SECTION 8. 5.28.080Failure to make remittance. (1) If full payment of any tax or fee due under this chapter is not received by the City Treasurer on or before the date due, there shall be added to the amount due a penalty fee as follows: That Port Orchard Municipal Code 5.28.060 shall read as follows: That Port Orchard Municipal Code 5.28.070 shall read as follows: That Port Orchard Municipal Code 5.28.080 shall read as follows: (a) One through 10 days late, five percent of tax due; Ordinance No. 1790 Page 4 of 6 (b) (c) (d) (2) In no event shall the penalty amount be less than $10.00. In addition to this penalty, the City Treasurer shall charge the taxpayer interest of eight percent per annum of ail taxes and fees delinquent for more than 30 days. (3) Failure to make payment in full of all tax amounts and penalties within 60 days following the day the tax became due shall be both a civil and criminal violation of this chapter. SECTION 9. 5.28.090Notice of intent to engage in gambling activity. In order that the city may identify those persons who are subject to taxation under this chapter, each person, assodation, or organization shall file with the City Treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon the form prescribed by the City Treasurer, together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than the 10 days prior to conducting or operating the taxable activity. No fee shall be charged for such filing. Failure to timely file shall not excuse any person, association, or organization from any tax liability. Eleven through 20 days late, seven and one-half percent of tax due; Twenty-one through 31 days late, 10 percent of tax due; Thirty-two through 60 days late, 15 percent of tax due. That Port Orchard Municipal Code 5.28.090 shall read as follows: SECTION 10. 5.28.100Records required. (1) 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 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. (2) 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 any city law enforcement officer or agency for the purpose of enforcing the provisions of this chapter. (3) 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 any city law enforcement officer or agency may examine them conveniently, the taxpayer shall either: That Port Orchard Municipal Code 5.28.100 shall read as follows: (a) Produce all of the required books, records, or items for such inspection within the city within 15 days following a request of any city law enforcement officer or agency that he do so; or Bear the actual cost of inspection by any city law enforcement officer or agency at the location at which such books, records. or items are located. A taxpayer choosing to bear these costs shall pay in advance to the city law enforcement officer or agency the estimated cost thereof including, but not limited to, round trip fare by the most rapid means, lodging, meals and incidental expenses. The actual amount due, or to be refunded, for expenses shall be determined following the examination of the records. (b) Ordinance No. 1790 Page 5 of 6 (4) The taxpayer who fails, neglects, or refuses to produce such books and records either within or without this jurisdiction, in addition to being subject to other civil and criminal penalties provided by this chapter, shall be subject to a jeopardy fee. The jeopardy fee shall be the amount of tax or fee owed by the taxpayer. SECTION 11. 5.28.1100verpayment or underpayment of tax. That Port Orchard Municipal Code 5.28.110 shall read as follows: If, upon application by a taxpayer for a refund or for an audit of its records, or upon any examination of the returns or records of any taxpayer, it is determined by the City Treasurer that within three years immediately preceding the receipt by the City Treasurer 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 the City Treasurer of such examination: (1) Tax or other fee has been paid in excess of that properly due, the total excess paid over all the amounts due to the city within such period of three years shall be credited to the taxpayets account or shall be refunded to the taxpayer at the taxpayeh option. No refund or credit shall be allowed for any taxes or fees paid more than three years before the date of such application or examination; (2) Tax or other fee has been paid which is less than that properly due, or no tax or other fee has been paid, the City Treasurer shall ail a statement to the taxpayer showing the balance due, including he tax amount or penalty assessments and fees. It shall be a separate, additional violation of this chapter, both civil and criminal, if the taxpayer fails to make payment in full within 10 calendar days of such mailing. . SECTION 12. 5.28.120Failure to make return. If any taxpayerfails, neglects, or refuses to make and file his retum as and when required under this chapter, the City Treasurer is authorized to determine the amount of tax payable together with any penalty andlor interest assessed under the provisions of this chapter, and by mail to notify such taxpayer of the amount so determined, which amount shall thereon become the tax and penalty andlor interest and shall become immediately due and payable. That Port Orchard Municipal Code 5.28.120 shall read as follows: SECTION 13. 5.28.1 30Taxes. penalties and fees as debts. Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the city and may be collected by wurt proceedings the same as any other debt. That Port Orchard Municipal Code 5.28.130 shall read as follows: SECTION 14. 5.28.140Violation - Penalties. (1) Any person, association, or organization violating or failing to comply with any of the provisions of this chapter shall, upon conviction thereof, be punished by a fine not to exceed $300.00, or by imprisonment in the Kitsap County Jail for a period not to exceed 90 days, or both such fine and imprisonment. (2) Any person engaging in any gambling activities subject to a tax hereunder without having complied with the provisions of this chapter shall be guilty of a violation of this chapter for each day during which the gambling activity is carried on. SECTION 15. Repealer. That Port Orchard Municipal Code 5.28.140 shall read as follows: Effective Janualy 24,2000, Ordinance No. 1086 is hereby repealed in its entirety. Ordinance No. 1790 Page 6 of 6 SECTION 16. Savings Clause. Ordinance No 1086 will be repealed by this ordinance, and shall remain in force and effect until January 24, 2000. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 10’” day of January 2000. ATTEST: /7 Patricia Parks, CiG Clerk APPROVED BY CITY ATTORNEY dL LESLIE J. WEATHERILL. MAYOR