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HomeMy WebLinkAbout1449 - Ordinance - Adopting Admissions TaxORDINANCE NO. 1449 / AN ORDINANCE OF THE CITY OF PORT ORCHARD REGARDING THE LEVYING AND THE FIXING OF A TAX FOR ADMISSIONS TO ANY PLACE CHARGING AN ADMISSIONS IN THE CITY OF PORT ORCHARD, STATE OF WASHINGTON. WHEREAS, Chapter 35.21.280 RCW authorizes the City Council to levy and fix an admissions tax; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION 1. THAT the City of Port Orchard, State of Washington, does hereby levy and fix an admissions tax and provide for the collection thereof pursuant to the following ordinance. SECTION 2. DEFINITIONS: For purposes of this chapter, words and phrases shall have the following meanings: (a) "Admissions Charge," in addition to its usual and ordinary meaning includes but shall not be limited to a charge made for use of seats and tables, reserved or otherwise and other similar accommodations. (b) "City" means the City of Port Orchard, State of Washington. (c) "Nonprofit Organization" means any organization organized and operated for charitable, education or other purposes, which is exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1954, as amended. (d) "Person" means any individual, receiver, assignee, firm, partnership, joint stock company, association, society, corporation, or any group of individuals acting as a unit whether mutual, cooperative, fraternal, nonprofit or otherwise. (e) "Place" means and includes, but is not restricted to theaters, dancehalls, amphitheaters, auditoriums, stadiums, athletic pavilions and fields, baseball and athletic parks, circuses, side shows, swimming pools, outdoor amusement parks and carnivals. (f) "Treasurer" means the City of Port Orchard Treasurer's Office. SECTION 3. IMPOSITION. (a) There is levied and imposed upon any person (including children, without regard to age) who pays an admission charge to any place, including persons who are admitted at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same or similar privileges or accommodations, a tax which shall be in the amount of one tenth of one percent (0.1%) of the admission charge. (b) No admissions tax shall be levied on any person who is admitted free of charge and from whom no compensating payment is obtained. The tax on reduced admission charges shall be charged on such reduced charge and not on the regular admission charge. Ordinance No. 1449 Page Two SECTION 4. EXEMPTIONS. (a) All participatory athletic or sporting events are exempted from this ordinance. This exemption shall apply but is not limited to participants of archery, batting cages, billiards, bowling, golf and swimming. This exemption does not apply to spectators at athletic or sporting events who pay an admissions charge. (b) Any nonprofit organization that promotes and produces its own public performance and collects an admission charge to attend is exempt from collecting an admissions tax from persons paying the admission charge. Persons attending these public performances are exempt from paying an admissions tax. (c) The admissions tax imposed by this ordinance shall not apply to any person paying an admission charge to any event sponsored or conducted by an elementary or secondary school. For purposes of this chapter, "elementary" or "secondary" schools means schools enrolling students in grades kindergarten through twelve. SECTION 5. ACCOUNTING FOR ADMISSION. (a) Whenever a charge is made for admission to any place, a turnstile or other counting device which will accurately count the number of paid admissions or a serially numbered or reserved seat ticket may be furnished to the person paying such charge. The established admissions price, admissions tax imposed by this ordinance and total price at which every such admission ticket or card is sold may be printed or written on the face or back of that part of the ticket which is to be taken up by the management of the place to which admission is gained. The admissions tax due shall be based on the established price for admittance. (b) For purposes of greater ease and economy in administration, collection and enforcement of the admissions tax, a person may opt to submit a copy of their Washington Excise Tax Report as proof of admission income. SECTION 6. COLLECTION AND PAYMENT. (a) Any person, including any municipal or quasi -municipal corporation, who receives any payment for admissions on which a tax is levied under this chapter shall collect the amount of the tax imposed from the person making the admission payment and shall remit the same as provided for in this section. The tax imposed under this ordinance shall be deemed to be held in trust by that person required to collect the tax until it is paid to the City as herein provided. Any person required to collect the tax imposed under this ordinance who fails to collect the same, or having collected the same, fails to remit the same to the City in the manner prescribed by this ordinance, whether such failure be the result of his or her own act or the result of acts or conditions beyond his or her control, shall nevertheless be personally liable to the City for the amount of such tax, and shall, unless remittance is made as required in this section, be guilty of a violation of this ordinance. The tax imposed shall be collected at the time admission charge is paid by the person seeking admission to any place and shall be reported and remitted by the person receiving the tax to the Treasurer annually on or before the fifteenth day of January next succeeding the end of the annual period on which the tax is collected or received. The Treasurer may extend the time for making and filing the return Ordinance No. 1449 Page Three and remittance of the tax for a period not to exceed thirty days. Payment or remittance of the tax collected may be made by check, unless payment or remittance is otherwise required by the Treasurer. Checks should be made payable to the City of Port Orchard. Payment by check shall not relieve the person collecting the tax from liability for payment and remittance of the tax unless the check is honored and in the full and correct amount. Any person receiving any payment for admissions shall make out a return upon such forms providing information as required by the Treasurer. Whenever any theater, circus show, exhibition, entertainment or amusement makes an admission charge which is subject to the tax levied in this ordinance, and the same is of a transitory or temporary nature, of which the Treasurer shall be the judge, the Treasurer shall require the report and remittance of the admissions tax immediately upon the collection of the tax at the conclusion of the performance or exhibition, or at the conclusion of a series of performances or exhibitions, or at such other time as the Treasurer shall determine. The Treasurer may require the applicant to deposit a sum of money or bond in advance of any performance, show or amusement. This deposit or bond shall be returned upon the faithful compliance with the provisions of this ordinance. (b) Failure to comply with any requirements of the Treasurer as to reporting and remitting the tax shall be a violation of this ordinance. (c) The books, records and accounts of every person collecting a tax levied in this ordinance shall, as to admission charges and tax collections, be subject to examination and audit by the Treasurer at all reasonable times. SECTION 7. PENALTY FOR LATE PAYMENT. (a) If payment of any tax due under this ordinance is not received by the Treasurer by the last day of the month in which the tax was due, there shall be added to such tax a penalty of fifteen percent of the tax due. (b) The treasurer shall notify the taxpayer by mail of the amount of any penalties so added or assessed and these shall become due and payable within ten days from the date of such notice. (c) In addition to this penalty, the Treasurer may charge the taxpayer interest of one percent of all taxes due for each thirty -day period or portion thereof that such amounts are past due. (d) Failure to make payment in full of all tax amounts and penalties within sixty days following the day the tax amount initially became due shall be a civil and/or criminal violation of this section. SECTION 8. REGISTRATION REQUIRED. Any person conducting or operating any activity for which an admission charge is made shall register with the Treasurer. Ordinance No. 1449 Page Four SECTION 9. SUCCESSOR TO BUSINESS. When any person required to pay a tax under this ordinance shall quit business or otherwise dispose of his or her business, any admissions tax payable shall immediately become due and payable, and if such tax is not paid by such person within ten days from the date of such sale, exchange or disposal of the business, the purchaser or successor shall also become liable for the payment of the full amount of such tax plus accrued penalties. SECTION 10. RECORDKEEPING. It shall be the duty of every person liable for any tax imposed by this ordinance to keep and preserve for a period of five years suitable records as may be necessary to determine the amount of any tax for which he or she may be liable under the provisions of this ordinance. SECTION 11. RULES AND REGULATIONS ADOPTED BY TREASURER. The Treasurer shall have the power to adopt rules and regulations not inconsistent with the terms of this ordinance for carrying out and enforcing the payment, collection and remittance of the tax levied by this ordinance and a copy of the rules and regulations shall be on file and available for public examination at the Treasurer's Office. Failure or refusal to comply with any such rules and regulations shall be deemed a violation of this ordinance. SECTION 12. EFFECTIVE DATE. There exists, and is hereby declared to exist, an emergency; and this ordinance is necessary for the immediate preservation of the public peace, health and safety of the citizens of Port Orchard and shall be in full force and effect immediately upon passage and publication. SECTION 13. VIOLATION -PENALTY. In addition to civil penalties that may be imposed, it is a misdemeanor to violate any of the provisions of this ordinance. Each person who violates or fails to comply with any of the provisions of this ordinance, unless otherwise specified, shall be subject to criminal penalties of a fine not to exceed five hundred dollars. SECTION 14. JURISDICTION. The admissions tax enacted by this ordinance shall be imposed in the City of Port Orchard. 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 13th day of February, 1989. ATTEST• Patricia Hower, City Clerk APPROVED AS TO FORM: LESLIE J. WEATHERILL, MAYOR Sponsored by: City Attorney John Clauson, Councilman