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HomeMy WebLinkAboutord2004-029Ii'HATCOM COUNTY COUNCIL AGENDA BILL NO. 2004 -161 CLEARANCES Initial Dale Date Received in Council Office AjovidarDate Assi nedto: Originator: C hateae Hirsin er 3 I r `I V I_7 is MAR 3 0 2004 ,, 1 HATCOM COUNTY COUNCIL 4/6/04 Introduction Dv islon Head: 4/20/04 Finance / Council Dept. Head: Barb nrnCar n prosecutor Pnrehming mrdgee Eree„ti,e, 3a SUBJECT: Ordinance revising Whatcom County Code 3.40.030, "Bona Fide charitable or nonprofit organizations." I TT.ACHMENTS: Ordinance and Exhibit A SEP4 review required? ( ) Yes ( ) NO SEPA review completed? ( ) Yes ( ) NO Should Clerk schedule a hearing ? ( ) Yes ( ) NO Requested Date: SUMMAR Y STA TEMENT: This ordinance increases bona fide charitable or non-profit organizations grass income exemption from $5000 to $IQ000 and adds clarification for the remittance of quarterly gambling taxes for those organizations. Distribution Request Indicate specific names to the receive a copy after Council action, Let specific names m the right_ ADS Facilities Management ADS Finance ADS Raman Resources ADS Info Services Assessor Auditor Cooperative Extension District Court Executive Health Hearing Examiner Jail COUNCIL ACTION TAKEN: 1 2004- 161 41612004: Introduced 412012004: Adopted 7-0, Ord, 42004 -029 '. Related County Contract N: Juvenile Parks Planning Prosecutor Public Works Sheriff Superior Court Treasurer Chantelle Hilsin er Other ran 4 2M4 -029 WHATCOM COUNTY TREASURER'S OFFICE COUNtt COURTHOUSE P.O. Box 5268 Belhnghant M 98227 -5268 treasurer @co whatco m.wa. u s �GOm X04 a y �\NINGtG2 MEMO TO: Pete Kremen, County Executive FROM: Barbara Cory, County Treasur r DATE: March 17, 2004 RE: The attached ordinance BARBARA). CORY TREASURER STEVEN N. OLIVER CHIEF DEPUTY RECEIVED MAR 1 7 2004 PF i :- KREMEN C'OUrviTY' EXECUTIVE Please find the attached ordinance and exhibit that revises Whatcom County Code 3.40.030 regarding gambling taxes. We are submitting this ordinance to increase the bona fide charitable or non - profit gross income exemption from $5000 to $10,000 to reflect the amount recently changed in RCW 9.46.110 (3D). Additionally, there is a need to clarify the remittance of quarterly gambling taxes for bona fide charitable or non - profit organizations. In order to determine if the organization that is claiming this exemption has taxable activity, the business must file a gambling tax return whether or not a tax is due. Further, there is a need to determine whether the bona fide charitable or non- profit organization that claims this exemption has met the $10,000 threshold. Once the organization has met the $10,000 threshold in a single calendar year, they are required to remit 2% gambling tax on activities that only occur within the jurisdiction of Whatcom County. If you have any questions regarding this change, please contact me at 50075. Phone. (360) 676 -6774 County : (360) 398 -1310 TTY: (360) 738 -4555 FAX: (360) 738 -2477 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 SPONSORED BY: Consent PROPOSED BY: Treasurer INTRODUCTION DATE: 4/6/04 ORDINANCE NO: 2004 -029 AN ORDINANCE AMENDING NO. 99 -088 (AN ORDINANCE WHICH AMENDED ORDINANCE NO 81.14 WHICH AUTHORIZED THE LEVY OF TAXES ON BINGO, RAFFLES, PUNCH BOARDS, AND PULL TABS; DESIGNATED REVENUE FOR LAW ENFORCEMENT; AUTHORIZED COLLECTION BY THE WHATCOM COUNTY TREASURER; AND REPEALED ORDINANCES AND RESOLUTIONS IN CONFLICT HEREWITH). WHEREAS, this ordinance is being amended to increase the bona fide charitable or non - profit gross income exemption from $5000 to $10,000 to reflect the amount set in RCW 9.46.110 (31D), and WHEREAS, there is a need to clarify the remittance of quarterly gambling taxes for bona fide charitable or non - profit organizations, and WHEREAS, there is a need to determine whether the bona fide charitable or non - profit organization has met the $10,000 threshold, and WHEREAS, in order to determine if the bona fide charitable or non - profit organization has taxable activity, the business must file a gambling tax return whether or not a tax is due, and WHEREAS, there is a further need to clarify that any business or organization who claims the bona fide charitable or non - profit organization exemption remits 2% gambling tax on activities that only occur within the jurisdiction of Whatcom County once they have exceeded $10,000 in gross receipts in a single calendar year, so NOW THEREFORE, BE IT ORDAINED by the Whatcom County Council that Whatcom County Code 3.40.030 be amended to increase the gross income exemption from $5000 to $10,000 per calendar year, less the amount paid for prizes. BE IT FURTHER ORDAINED that Whatcom County Code 3.40.030 be amended to require the remittance of quarterly gambling tax returns for any quarter when activity occurs, whether or not taxes are owed. Once the organization has exceeded $10,000 in gross receipts in a calendar year, the organization is then subject to two percent gambling taxes on activities that occur within the jurisdiction of Whatcom County. ADOPTED this 20th day of April , 2004 WHATCOM COUNTY COUNCIL 1ATCOM COUNTY. WASHINGTON Civil Deputy lyrosecutor ,Council Chair ( proved ( ) Denied Pete Kremeg3CouJ�ty Executive Date: `� 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. 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 there from 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 gross income from bingo, raffles or amusement games, or any combination thereof, not exceeding $6,,999 ttM per year, less the amount paid for as prizes. Any organization claiming an exemption under this section must remit 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 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. 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. 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 and remittance therefore, 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, April 30th, July 31st and October 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 acquaintance 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 therefore 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 taxpayer'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).