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HomeMy WebLinkAboutord2006-002WHATCOM COUNTY COUNCIL AGENDA BILL NO, 2005 -472 CLEARANCES Initial Date Date Received in Council Office A genda Date Assigned la: Originator: Nicole Moore d '_ - . �, n mProsecutor .r $ 0 f1 ... 12/6/2005 - Introduction Division Head: 1/17/2006 Finance /Council Dept. Head: Barbara Co _ lld�4 Purchasing/Budget 1 7 Executive: '� t tr a SUBJECT: Ordinance revising Whatcom County Code 3.40, "Tax on Bingo, Raffles, Punchboards and Pull Tabs." ATTACHMENTS: Ordinance and Exhibit A SEPA review required? ( ) Yes ( ) NO SEPA review completed? ( ) Yes ( ) ,NO Should Clerk schedule a hearing ? { ) Yes ( ) NO Requested Date: SUMMARY STATEMENT: This ordinance changes the remittance of gambling taxes from quarterly to semi - annually. Distribution Request Indicate those who should receive a copy after Council action. Lal specific names to the right. ADS Facifities Managemem ADS Finance ADS Human Resources ADS In /a Services Assessor Auditor Cooperative Extension District Court Executive Health Hearing Examiner Jail COUNCIL ACTION TAKEN: 12/6/2005: Introduced. 1/17/2006: Approved in Finance Committee to forward to Council 1/17/2006: Adopted 7 -0 Ordinance Number 2006 -002 Juvenile park` Planning Prosecutor Public Works Sheriff Superior Court Related County Contract #: Treasurer Nicole Moore Other Related File Numbers: Ordinance or Resolution Number (this item): Ordinance 2006 -002 LJ 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 SPONSERED BY: PROPOSED BY: INTRODUCTION DATE: ORDINANCE NO: 2006 -002 Consent Consent 12/6/2006 AMENDING WHATCOM COUNTY CODE 3.40, TAX ON BINGO, RAFFLES, PUNCHBOARDS AND PULL TABS WHEREAS, the Washington State Gambling Commission changed its reporting requirements from quarterly to semi - annually; and WHEREAS, Whatcom County desires to simplify the reporting requirements for gambling establishments operating in Whatcom County; and WHEREAS, there is a need to verify gambling taxes submitted to Whatcom County with the state activity report submitted to the Washington State Gambling Commission; and WHEREAS, the revenue from gambling taxes would not be reduced. NOW THEREFORE, BE IT ORDAINED by the Whatcom County Council that Whatcom County Code 3.40 is hereby amended as indicated in Exhibit A to this ordinance. BE IT FURTHER ORDAINED that this amendment shall take effect on January 1. 2006. ADOPTED this 17th ``0 a a r u r rr+r't"��'' ,( C 0 �� •000.!!,' r Dan» pet_ Clerk '. •' gsNlN6�•' c" �.,� 0000. • `��. APPR0�IE�+A610 +rrrnn +ls� i Civ, , epu` 9-­Prgs6cutor day of January , 2006. WHATCOM COUNTY COUNCIL HATCOM COUNTY, �W WASHINGTON . L"o e- " curie Caskey -S reiber, Council Chair (r/� Approved ( ) Denied P remen, County Executive Date: 146-06 Exhibit A Chapter 3.40 TAX ON BINGO, RAFFLES, PUNCHBOARDS AND PULL TABS Sections: 3.40.010 Definitions. 3.40.020 Tax levied. 3.40.030 Bona fide charitable or nonprofit organizations. 3.40.040 Tax collected by county treasurer. 3.40.050 Payments computed and paid quarterly semi- annually. 3.40.060 Method of payment. 3.40.070 Failure to make timely payment of tax or fee. 3.40.080 Notice of intention to engage in activity to be filed. 3.40.090 Records required. 3.40. 100 Tax additional to others. 3.40.110 Taxes, penalties and fees constitute debt to municipality. 3.40.120 Tax revenue to be used for law enforcement. 3.40.010 Definitions. Definitions contained in Chapter 9.46 RCW as now exist are adopted by reference in this chapter. (Ord. 81 -14 § 1). 3.40.020 Tax levied. In accordance with the provisions of Chapter 9.46 RCW, there is levied upon all persons, associations and organizations conducting or operating within this jurisdiction any of the activities listed below a tax in the following amounts to be paid to Whatcom County, Washington: A. Bingo and /or Raffles. There shall be a tax imposed on bingo games and /or raffles in the amount of the gross receipts therefrom less the amount of money paid as cash, and paid for merchandise, actually awarded as prizes during the taxable period, multiplied by the rate of two percent. B. Punchboard and Pull Tabs, Chances on Which Shall Only Be Sold to Adults. There shall be a tax imposed on any punchboards or pull tabs in the amount of five percent of the net receipts obtained directly from the operation of the punchboards or pull tabs themselves; provided, and subject to the provisions of WCC 3.40.030, punchboards and pull tabs offered by bona fide charitable or nonprofit organizations shall be taxed in the amount of two percent of the net receipts obtained directly from the operation of the punchboards or pull tabs themselves. (Ord. 99 -088; Ord. 81 -14 § 2)- 3.40.030 Bona fide charitable or nonprofit organizations. No tax shall be imposed under this chapter on bingo, raffles, or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in RCW 9.46.020(3), which organization has not paid operating or management personnel, and has grass income from bingo, raffles or amusement games, or any combination thereof, not exceeding $10,000 per year, less the amount paid for as prizes. Any organization claiming an exemption under this section must remit quarterly semi - annually gambling tax returns to the Whatcom County treasurer in a form which complies with the reporting requirements of WCC 3.40.040 for any quarter ep riod when activity occurs whether or not taxes are owed. Once the organization has exceeded $10,000 in gross receipts in a single calendar year, the organization is then subject to the two percent gambling taxes on activities that occur within the jurisdiction of Whatcom County. (Ord. 2004 -029; Ord. 81 -14 § 3). 3.40.040 Tax collected by county treasurer. A. The administration and collection of the tax imposed by this chapter shall be by the Whatcom County treasurer pursuant to the terms of this chapter and such rules and regulations as may be adopted by the Washington State Gambling Commission. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the county treasurer. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate, and complete. B. In addition to the return form, a copy of the taxpayer's quarterly semi - annual report to the Washington State Gambling Commission required by Chapter 230 -08 WAC for the period in which the tax accrued, shall accompany remittance of the tax amount due. C. Whatcom County may adopt from time to time such rules and regulations as may be reasonably necessary to enable the collection of the tax imposed in this chapter. (Ord. 81 -14 § 4). 3.40.050 Payments computed and paid quarterly semi- annually. Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter half year, and shall be due and payable in quarterly semi - annual installments and remittance therefor, together with return forms, and shall be made to the Whatcom County treasurer, on or before the last day of the month next succeeding the quarterly period in which the tax accrued; that is, on January 31st, ^^nth, and July 31 st and OGtebeF 31st of each year; provided, that the following exceptions to this payment schedule shall be allowed, or required: Whenever any person, association or organization taxable under this chapter, 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 under this chapter shall become due and payable, and such taxpayer shall, within 10 days thereafter, make a return and pay the tax due. (Ord. 81 -14 § 5). 3.40.060 Method of payment. Taxes payable under this chapter shall be remitted to the Whatcom County treasurer, on or before the time required, by bank draft, certified check, cashiers 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 county treasurer be an acquittance or discharge of the tax unless the amount paid is the full amount due. (Ord. 81 -14 § 6). 3.40.070 Failure to make timely payment of tax or fee. A. If full payment of any tax or fee due under this chapter is not received by the Whatcom County treasurer on or before the date due, there shall be added to the amount due a penalty fee as follows: 1. One to 10 days late, five percent of tax due; 2. Eleven to 20 days late, 10 percent of tax due; 3. Twenty -one to 30 days late, 15 percent of tax due; 4. Thirty -one to 60 days late, 20 percent of tax due; but in no event shall the penalty amount be less than $5.00. In addition to this penalty, the county treasurer may charge the taxpayer interest of eight percent of all taxes and fees due for each 30 -day period, or portion thereof, that said amounts are past due. B. Failure to make payment in full of all tax amounts, and penalties, within 60 days following the day the tax amount initially became due shall be a civil violation of this section. (Ord. 81 -14 § 7). 3.40.080 Notice of intention to engage in activity to be filed. In order that Whatcom County may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the county treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form to be prescribed by the county treasurer, together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not later than 15 days prior to conducting or operating 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 purposes of administration of this taxing chapter only. (Ord. 81 -14 § 8). 3.40.090 Records required. A. 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 taxpayers's tax liability under this chapter 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. B. 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 county treasurer or his designees, for the purpose of enforcing the provisions of this taxing chapter. C. 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 county treasurer or authorized officer may examine them conveniently, the taxpayer shall either: 1. Produce all of the required books, records or items within this jurisdiction for such inspection within 10 days following a request of the local official that he do so; or 2. Bear the actual cost of inspection by the county treasurer or his designee, at the location at which such books, records or items are located; provided, that a taxpayer choosing to bear these costs shall pay in advance to said officer 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. (Ord. 81 -14 § 9). 3.40.100 Tax additional to others. The tax levied in this chapter shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of Whatcom County, except as otherwise expressly provided in this chapter. (Ord. 81 -14 § 10). 3.40.110 Taxes, penalties and fees constitute debt to municipality. Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to Whatcom County, a municipal corporation, and may be collected by court proceedings the same as any other debt in like amount which shall be in addition to all other existing remedies. (Ord. 81 -14 § 11). 3.40.120 Tax revenue to be used for law enforcement. The revenue collected pursuant to this chapter shall be used primarily for the purpose of enforcement of RCW Chapter 9.46 by the Whatcom County sheriff as provided in RCW 9.46.113. (Ord. 81 -14 § 12).