Chapter 5.12 - GAMBLING AND GAMES

For the purpose of this chapter, the words and terms used herein shall have the same meanings as in RCW Chapter 9.46 as now exists or as may hereafter be amended.

(Ord. 442 § 1, 1996)

5.12.020 - Persons subject to tax—Tax rates.

Except as hereinafter provided in Section 5.12.040, there is levied upon all persons, associations and organizations conducting or operating within the town any of the activities listed below, a tax in the following amounts to be paid to the town:

Bingo, 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;

Raffles, 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;

Amusement games, the amount of 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 two percent;

Fishing derbys, 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;

Punchboards or pull tabs, the amount of ten percent of the net receipts from the operation of the punchboards or pull tabs themselves;

Card playing, the amount of twenty (20) percent of the gross receipts received as fees for the privilege of playing in card games.

(Ord. 454, 1997; Ord. 449, 1997; Ord. 442 § 2, 1996)

5.12.030 - Tax to be computed and paid quarterly.

Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter year, and shall be due and payable in quarterly installments. Remittance therefor, together with return forms, shall be made to the town clerk, of the town of Naches, Washington, on or before the last day of the month next succeeding the quarterly period in which the tax accrued, that is, on January 31st, April 30th, July 31st and October 31st, of each year, provided, however, that:

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 two 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 ten days thereafter, make a return and pay the tax due;

Whenever it appears to the town clerk, or his/her designee, of the town of Naches, Washington, that the collection of taxes from any person, association or organization may be in jeopardy, the town clerk, or his/her designee, after not less than ten days' notice to the taxpayer, is authorized to require the taxpayer to remit taxes and returns at such shorter intervals than quarterly as the town clerk, or his/her designee, shall deem appropriate under the circumstances.

When the last day of the month (of January 31st, April 30th, July 31st and/or October 31st) falls on a weekend or holiday, the tax is due on the following business day.

(Ord. 464, 1998: Ord. 442 § 3, 1996)

5.12.040 - Exceptions.

No tax shall be imposed pursuant to this chapter on bingo, raffles, amusement games, and fishing derbys when such activities or any combination thereof are conducted by a bona fide charitable or nonprofit organization no more than twice in a calendar year.

(Ord. 442 § 4, 1996)

5.12.050 - Administration and collection of tax.

Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the town clerk of the town of Naches or his/her designee. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the town clerk. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.

The town clerk, or his/her designee, 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 town clerk, or his/her designee, shall make forms available to the public in reasonable numbers in the Town Hall during regular business hours.

In addition to the return form, a copy of the taxpayer's quarterly report to the Washington State Gambling Commission required by WAC 230-08, for the period in which the tax accrued, shall accompany remittance of the tax amount due.

(Ord. 442 § 5, 1996)

5.12.060 - Method of payment.

Taxes payable hereunder shall be remitted to the town clerk, or his/her designee, on or before the time required by bank draft, certified check, cashier's check, personal check, money order, or cash. 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 town clerk be an acquittance or discharge of the tax unless the amount paid is the full amount due.

(Ord. 442 § 6, 1996)

5.12.070 - Failure to make timely payment of the tax.

If full payment of any tax due under this chapter is not received by the town clerk, or his/her designee, on or before the date due, there shall be added to the amount due a penalty as follows:

1—10 days late: Ten percent of tax due;

11—20 days late: Fifteen (15) percent of tax due;

21—31 days late: Twenty (20) percent of tax due;

32—60 days late: Twenty-five (25) percent of tax due;

but in no event shall the penalty amount be less than twenty-five dollars ($25.00). In addition to this penalty, the town clerk may charge the taxpayer interest of one percent per month of all taxes and penalties due for each thirty (30) day period, or portion thereof, that said amounts are past due.

(Ord. 442 § 7, 1996)

5.12.080 - Failure to make returns.

If any taxpayer fails, neglects or refuses to make and file his/her return as and when required under this chapter, the town clerk, or his/her designee, is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed under the provisions of this chapter, 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.

(Ord. 442 § 8, 1996)

5.12.090 - Notice of intention to engage in activity to be filed.

In order that the town may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the town clerk a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the town clerk, together with a copy of the license issued therefor by the Washington State Gambling Commission. All persons, associations or organizations conducting gambling activities as of the effective date of the ordinance codified in this chapter shall file such declaration of intent not less than thirty (30) days after the effective date hereof, and thereafter said filing shall not be made later than five days prior to beginning the taxable activity. No fee shall be charged for such filing, which is not for the purpose of regulation of this activity, but for the purpose of administration of this taxing ordinance only. Failure to timely file shall not excuse any person, association or organization from any tax liability.

(Ord. 442 § 9, 1996)

5.12.100 - Records required.

Each person, association or organization engaging in any gambling 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 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 and at any time, with or without notice, at the place where such records are kept, upon demand by the town clerk or his/her designee, for the purpose of enforcing the provisions of this taxing chapter.

Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this section within the geographical limits of the town, the taxpayer shall either:

Produce all of the required books, records or items at the office of the town clerk for such inspection within five days following a request of the town clerk that he or she do so; or

Bear the actual cost of inspection by the town clerk or his/her designee, at the location at which such books, records or items are located, provided that a taxpayer choosing to bear such costs shall pay in advance to the town clerk 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 said examination of the records.

A jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the town clerk by the taxpayer unless he or she can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the town clerk 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.

(Ord. 442 § 10, 1996)

5.12.110 - Overpayment or underpayment of tax.

If, upon application by a taxpayer for a refund or for an audit of his or her records, or upon any examination of the returns or records of any taxpayer, it is determined by the town clerk that within three years immediately preceding receipt by the town clerk 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 town clerk of such examination:

A tax or other fee has been paid in excess of that properly due, the total excess paid over all amounts due to the town 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 town clerk more than three years before the date of such application or examination;

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 town clerk 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 calendar days of such mailing.

(Ord. 442 § 11, 1996)

5.12.120 - Tax additional to others.

The tax herein levied shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the town, except as herein otherwise expressly provided.

(Ord. 442 § 12, 1996)

5.12.130 - Town clerk to make rules.

The town clerk shall have the power, and it shall be his/her duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with superior law, for the purpose of carrying out the provisions hereof, and it is unlawful to violate or fail to comply with any such rules or regulations. The town clerk shall mail copies of such rules and regulations to each business or person who has filed a notice of intent as provided in Section 5.12.090.

(Ord. 442 § 13, 1996)

5.12.140 - Taxes and penalties constitute debt to municipality.

Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to the town, a municipal corporation, and may be collected by the court proceedings the same as any other debt in like amount which shall be in addition to all other existing remedies.

(Ord. 442 § 14, 1996)

5.12.150 - Limitation on right to recovery.

The right of recovery of the town from the taxpayer for any tax provided hereunder shall be limited to the three calendar years preceding the date said tax became due. The right of recovery against the town because of overpayment of tax by any taxpayer shall be limited to the three calendar years preceding the date such payment was made.

(Ord. 442 § 15, 1996)

5.12.160 - Violations—Penalties.

Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the town clerk pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed one thousand dollars ($1,000.00), or by imprisonment in the Yakima County jail for a term not exceeding ninety (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 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.

(Ord. 442 § 16, 1996)