918_00001ORDINANCENO._91_8
ANORDINANCEREPEALINGCHAPTER3.18 OF THEMOSESLAKECITY CODEENTITLED"GAMBLINGTAX"ANDENACTINGA NEWCHAPTER3.18 ENTITLED"GAMBLINGTAX"BY AMENDINGANDADDINGCERTAINSECTIONS,INCORPORATINGCERTAINVIOLATIONANDPENALTYPROVISIONSOFRCW9.46 ORIGINALLYANDAS AMENDED,AS ISAUTHORIZEDBYRCW9.46.192 ANDTO PROVIDEFORUSE OF REVENUECOLLECTEDTOBEUSEDPRIMARILYFORENFORCEMENTOFTHEPROVISIONSOFSTATELAWANDTHIS
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CIL OF THECITY OF MOSESLAKE,WASHINGTONDOORDAINAS FOLLOWS:
Section 1.That Chapter 3.18 of the Municipal Code is hereby repealed in its entirety.
Section 2.NewChapter Enacted;Chapter 3.18 entitled "Gambling Tax"shall readasfollows:
3.18.02 Definitions.For the purposes of this ordinance the words and terms usedshallhavethesamemeaningaseachhasunderChapter218,Laws of 1973,1st Ex.Sess.and Chapter 9.46 RCW,each as amended,and under the rules of the Washington StateGamblingCommission,Chapter 230 WAC,unless otherwise specifically provided or thecontextinwhichtheyareusedhereinclearlyindicatesthattheybegivensomeothermeaning.
3.18.06 Taxes Imposed -Amounts.There is hereby levied a tax upon all persons,associations,and organizations who conduct or operate gambling activities withintheCityofMosesLake,and who have been duly licensed by the Washington StateGamblingCommissiontoconductoroperatesuchgamblingactivities,which tax shallbepaidonthefollowinggamblingactivitiesinthefollowingrespectiveamounts:
A.BINGOANDRAFFLEGAMES:Any bingo or raffle activity,a tax computed at therateoftenpercent(10%)of the difference between the gross revenue receivedfromtheconductofsuchactivityandtheamountpaidfororasprizesintheiconductofsuchactivity;Provided,however,that no tax shall be imposed undertheauthorityofthischapteronbingoorraffleswhensuchattivityoranycombi-nation thereof is conducted by any bona fide charitable or non-profit organizationasdefinedinRCW9.26.020 (3),which organization has no paid operating or manage-ment personnel and has gross income from bingo or raffles,or any combinationthereof,not exceeding $5,000 per year less the amount paid for as prizes;andprovidedfurtherthatactivitiescarriedoutbypublicorprivateschoolsorbyorganizationssponsoredbyorrelatedtopublicorprivateschools,includingparentorganizationsandstudentbodyorganizations,shall be exempt from theprovisionsofthischapterwhentheproceedsofsuchactivitiesareappliedforthebenefitofanysuchschool,or school sponsored or school related organi-zation;and provided further,that any deviation from exemption restrictionsenumeratedhereinshallsubjectsuchorganizationtotherequirementsofthischaptertothesameextentifsuchexemptionhadnotbeengranted,includingrequiredpaymentwithinten(10)days after written demand of the Finance Directorofanytaxesformerlygrantedexemptionhereunder.
B.AMUSEMENTGAMES:Any amusementgame,a tax computed at two percent (2%)of thegrossrevenuelesstheamountpaidforasprizes;Provided,however,that notaxshallbeimposedundertheauthorityofthischapteronAmusementGameswhensuchactivityisconductedbyanybonafidecharitableornon-profit organi-zation as defined in RCW9.26.020 (3),which organization has no paid operatingormanagementpersonnelandhasgrossincomefromamusementgamesnotexceeding$5,000 per year less the amount paid for as prizes;and provided further thatiactivitiescarriedoutbypublicorprivateschoolsorbyarganizationssponsoredbyorrelatedtopublicorprivateschools,including parent organizations andstudentbodyorganizations,shall be exempt from the provisions of this chapterwhentheproceedsofsuchactivitiesareappliedforthebenefitofanysuchschool,or school sponsored or school related organization;and provided further,that any deviation from exemption restrictions enumerated herein shall subjectsuchorganizationtotherequirementsofthischaptertothesameextentasifsuchexemptionhadnotbeengranted,including required payment within ten(10)days after written demand of the Finance Director of any taxes formerlygrantedexemptionhereunder.
C.PUNCHBOARDOR PULL-TAB:Any punch board or pull-tab,a tax computed at therateoffivepercent(5%)of the gross receipts received from the conduct ofsuchactivity.
D.CARDGAMES:Any card game,a tax computed at the rate of ten percent (10%)of the gross income received from the conduct of such activity.
3.18.10 Tax To Be Computed and Paid Quarterly -Exceptions.Each of the varioustaxesimposedbythisordinanceshallbecomputedonthebasisofactivityduringeachcalendarquarteryear.They shall be due and payable in quarterly installments,and the remittance,together with return forms,shall be made to the City of MosesLake,Washington.This shall be done on or before the last day of the month nextsucceedingthequarterlyperiodinwhichthetaxisaccrued:That is on January 31,April 30,July 31,and October 31,of each year.The following exceptions to thispaymentscheduleshallbeallowedorrequired:
A.Whenever any person,association,or organization taxable hereunder,conducting
or operating a taxable activity on a regular basis discontinues operation for
a period of more than four (4)consecutive weeks,or quits business,sells out
or otherwise disposes of the business,or terminates the business,any taxdueshallbecomepayable,and such taxpayer shall within ten (10)days make areturnandpaythetax.
B.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 fifteen (15)days notice to the taxpayer,may require thetaxpayertoremittaxesandreturnsatwhateverintervalstheFinanceDirector
shall deem appropriate under the circumstances.
C.Whenever reports required by the State Gambling Commission under the provisionsofRCW9.46 are required on less than a quarterly basis,any person,association,
or organization taxable hereunder shall report to the city on the same basis.
3.18.14 Administration and Collection of Tax.Administration and collection ofthevarioustaxesimposedhereinshallrbetheresponsibilityoftheFinanceDirector
of the City of Moses Lake.Remittance of the amount due shall be accompanied by acompletedreturnformprescribedandprovidedbytheFinanceDirector.The taxpayershallberequiredtoswearandaffirmthattheinformationgiveninthereturnis
true,accurate,and complete.The Finance Director is authorized,but not required,
to mail to taxpayers the necessary forms.Failure of the taxpayers to receive such
a form shall not excuse them from making the return and timely paying all taxes due.
The Finance Director shall make forms available to the public in reasonable numbers
in his office during regular business hours.
In addition to the return form,a copy of the taxpayers quarterly report to the
Washington State Gambling Commission required by WAC230-08 for the period in which
the tax accrued shall accompany remittance of the tax.
3.18.20 Method of Payment.Taxes payable shall be remitted to the Finance Director
on or before the time required by bank draft,certified check,cashier's check,per-sonal check,money order,or in cash.If payment is made by draft or check,the taxshallnotbedeemedpaiduntilthedraftorcheckishonoredintheusualcourseof
business,nor shall the acceptance of any sum by the Finance Director be an aquit-
tance or discharge of the tax unless the taxes due are paid in full.The return and
a copy of the quarterly report to the Washington State Gambling Commission shall be
filed in the office of the Finance Director after notation by that office upon the
return of the amount actually received from the taxpayer.
3.18.24 Failure to Make Timely Payments of Tax or Fee.If full payment of any tax
or fee due 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:6%of tax due
B.11 -20 days late:8%of tax due
C.21 -31 days late:10%of tax due
D.32 -60 days late:12%of tax due
but in no event shall the penalty amount be less than Five Dollars-($5).In addi-
tion to this penalty the Finance Director may charge the taxpayer interest of onepercent(1%)of all taxes and fees due for each thirty-day (30)period,or portion
thereof,that said amounts are past due.
Failure to make payment in full of all tax amounts,and penalties,within sixty (60)days following the day the tax amount initially became due shall be both a civilandcriminalpenaltyofthissection.
3.18.28 Notice of Intention to Engage in Activity to be Filed:In order that theCit.y of Moses Lake may identify those persons who are subject to taxation under theseiprovisions,each person,association,or organization shall file with the Finance
Director,a form "Declaration of Intent"to conduct an activity taxable as hereinprovided.The Declaration of Intent shall be a form to be prescribed by the Finance
Director and shall be submitted with a copy of the license issued by the WashingtonStateGamblingCommission.The filing shall be made not later than ten (10)days
prior to conducting or operating a taxable activity or twenty (20)days after theeffectivedateofthisordinanceiftheactivityisbeingconductedpriortoitsadoption.No fee shall be.charged for such filing,which is not for the purposeofregulationofthisactivity.
Failure to timely file shall not excuse any person,association,or organizationfromanytaxliability.
3.18.32 Records Required.Each person,association,or organization engaging in
an activity taxable under these provisions shall maintain records respecting thatactivitywhichtruely,completely,and accurately disclose all information necessarytodeterminethetaxliabilityduringeachbasetaxperiod.Such records shall bekeptandmaintainedforaperiodofnotlessthanthree(3)years.In addition,allinformationanditemsrequiredbytheWashingtonStateGamblingCommissionunderWAC230-08,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 sec-tion shall be subject to and immediately available for inspection and audit at anyIreasonabletimewithreasonablenotice.Inspection shall be made upon demand by theFinanceDirectororhisdesignee,at the place where such records are kept,for the
purpose of enforcing these provisions.
Where the taxpayer does not keep all of the books,records,or items required in thisjurisdiction,the taxpayer shall either:
A.Produce all of the required books,records,or items within the City of MosesLakeforsuchinspectionwithinseven(7)days following a request of the FinanceDirector;or
B.Bear the actual cost of the inspection by the Finance Director or his designee,at the location at which such books,records,or items are located,providedthatataxpayerchosingtobearthesecostsshallpayinadvancetotheFinanceDirectortheestimatedcoststhereof,including but not limited to,round tripfarebythemostrapidmeans,lodging,meals,and incidental expenses.Theactualamountdue,or to be refunded,for expenses shall be determined followingsaidexaminationoftherecords.
3.18.36 Overpayment or Underpayment of Tax.If,upon application by a taxpayer forarefundoranauditofhisrecords,or upon any examination of the returns orrecordsbytheFinanceDirector,it is determined that within the immediate pastthree(3)years:
i A.A tax or other fee has been paid in excess of that properly due,the total excesspaidoverallamountsduetothecitywithinsuchperiodshallbecreditedtothetaxpayersaccountorshallbecreditedtothetaxpayeratthetaxpayer'soption.No refund or credit shall be allowed with respect to any excess amountspaidmorethanthree(3)years before the date of such application or examina-tion.
B.A tax or other fee has been paid which is less than properly due,or no tax orotherfeehasbeenpaid,the Finance Director shall mail a statement to the tax-
payer showing the balance due,including the tax amount or penalty assessment
and fees,and it shall be a separate,additional violation of the provisions
of this section,both civil and criminal,if the taxpayer fails to make paymentinfullwithinten(10)calendar days of mailing.
3.18.40 Failure to Make Return.If any taxpayer fails,neglects or refuses to make
and file his return as and when required under these provisions,the Finance Director
is authorized to determine the amount of tax payable,together with any penalty
and/or interest assessed.The taxpayer shall then be notified by mail of the amountwhichshallbecomeimmediatelydueandpayable.
3.18.44 Tax Additional to Others.The tax herein levied shall be in addition to
any license fee or tax imposed or levied under any law or any other ordinance of theCityofMosesLakeexceptashereinotherwiseexpresslyprovided.
3.18.48 Taxes,Penalties and Fees constitute Debt to Municipality.Any tax due andunpaidundertheseprovisionsandalTpenaltiesorfeesshallconstituteadebttotheCityofMosesLake,a municipal corporation,and may be collected by court pro-ceedings the same as any other debt in like amount,but shall be in addition toallotherexistingremedies.
3.18.52 Limitations on Right to Recovery.The right of recovery by the city from
the taxpayer for any tax provided hereunder shall be outlawed after the expiration
of three (3)calendar years from the date that tax became due.The right of recoveryagainstthecitybecauseofoverpaymentoftaxbyanytaxpayershallbeoutlawed
after the expiration of three (3)calendar years from the date such payment wasmade.
3.18.63 Violation -Penalties.Any person violating any of the provisions or fail-
ing to comply with any of the mandatory requirements of this ordinance is guilty of
a misdemeanor.Any person convicted of a misdemeanor under this ordinance shall be
punished by a fine not to exceed Five Hundred Dollars ($500),or by imprisonment
not to exceed ninety (90)days,or both such fine and imprisonment.
Each such taxpayer is guilty of a separate offense for each and every day during anyportionofwhichanyviolationoftheseprovisionsiscommitted,continued,or per-
mitted by any such taxpayer and he is punishable accordingly.
3.18.54 Causing Person to Violate Rule or Regulation as Violation -Penalty.Any
person who knowingly causes,aids,abets,or conspires with another to cause any
person to violate any rule or regulation adopted pursuant to Chapter 9.46 RCW
originally and as amended shall be guilty of a gross misdemeanor and upon conviction
shall be punished by imprisonment in the county jail for not more than one year or by afineofnotmorethanfivethousanddollars,or both.
3.18.55 Violations Relating to Fraud or Deceit -Penalty.Any person or association
or organization operating any gambling activity who or which,directly or indirectly,
shall in the course of such operation:
A.Employ any device,scheme,or artifice to defraud
B.Make any untrue statement of a material fact,or omit to state a material fact
necessary in order to make the statement made not misleading,in the light of
the circumstances under which said statement is made
C.Engage in any act,practice or course of operation as would operate as a fraud
or deceit upon any person
Shall be guilty of a gross misdemeanor and upon conviction shall be punished by im-
prisonment in the county jail for not more than one year or by a fine of not more
than five thousand dollars,or both.
3.18.56 Defrauding or Cheating Other Participant or Operator as Violation -CausingAnothertodosoasviolation-Penalty.No person participating in a gambling activ-ity shall in the course of such participation,directly or indirectly:
A.Employ or attempt to employ any device,scheme,or artifice to defraud any otherparticipantoranyoperator
B.Engage in any act,practice,or course of operation as would operate as a fraudordeceituponanyotherparticipantoranyoperator
C.Engage in any act,practice,or course of operation while participating in aigamblingactivitywiththeintentofcheatinganyotherparticipantortheopera-tor to gain an advantage in the game over the other participant or operator
D.Cause,aid,abet,or conspire with another person to cause any other person toviolatesubsectionsAthroughCofthissection.
Any person violating this section shall be guilty of a gross misdemeanor and uponconvictionshallbepunishedbyimprisonmentinthecountyjailfornotmorethanoneyearorbyafineofnotmorethanfivethousanddollars,or both.
3.18.57 Working in Gambling Activity Without License as Violation -Penalty.AnypersonwhoworksasanemployeeoragentorinasimilarcapacityforanotherpersoninconnectionwiththeoperationofanactivityforwhichalicenseisrequiredunderChapter9.46 RCWoriginally and as amended or by rule of the Washington State GamblingCommissioncreatedinRCW9.46 without having obtained the applicable license requiredbytheWashingtonStateGamblingCommissionunderRCW9.46.070 (16)shall be guilty ofagrossmisdemeanorandshall,upon conviction,be punished by not more than one yearinthecountyjailorafineofnotmorethanfivethousanddollars,or both.
3.18.58 Gambling Information,Transmitting or Receiving as Violation -Penalty.Who-ever knowingly transmits or receives gambling information by telephone,telegraph,radio,semaphore or similar means,or knowingly installs or maintains equipmentforthetransmissionorreceiptofgamblinginformationshallbeguiltyofagrossmisdemeanor;Provided,however,that this sociton shall not apply to such informationitransmittedorreceivedorequipmentinstalledormaintainedrelatingtoactivitiesasenumeratedinRCW9.46.030 or to any act or acts in furtherance thereof whenconductedincompliancewiththeprovisionsofChapter9.46 RCWoriginally and asamendedandinaccordancewiththerulesandregulationsadoptedpursuantthereto.
3.18.60 Revenue.Any revenue collected from such tax shall be used primarily bytheCityofMosesLakeforthepurposeoftheenforcementoftheprovisionsofChapter9.46 RCW,the rules and regulations of the Washington State Gambling Commis-sion,and this ordinance.
3.18.64 Severability.If any provisions or section of this ordinance shall beheldvoidorunconstitutional,all other parts,provisions,and sections not expresslysoheldtobevoidorunconstitutionalshallcontinueinfullforceandeffect.
Section 3.This ordinance shall take effect and be in force five (5)days after itspassageandpublicationasprovidedbylaw.
PASSEDby the City Council of the City of Mos s L¢ke and APPROVEDb its Mayor this-1101day of Februarv ,1979.
//Mayor