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Ordinance 1766ORDINANCE NO. 1766 AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, RELATING TO GAMBLING, PROVIDING FOR AND LEVYING A TAX UPON THE INCOME DERIVED FROM THE CONDUCT OF CERTAIN ACTIVITIES; PROVIDING FOR NECESSARY ADMIN- ISTRATIVE PROCEDURES FOR THE COLLECTION AND ENFORCE- MENT OF SUCH A TAX; PROVTDING PENALTIES FOR FAILURE TO TIMELY FILE SUCH._TAX; _REPEALING CHAPTER 4 .16 OF THE EDMONDS CITY CODE AND ORDINANCE NO. 833; AMENDING CHAPTER 4.24 OF THE EDMONDS CITY CODE TO REMOVE THE REFERENCE TO CARD ROOMS AND CARD TABLES AND TO INCREASE THE LICENSE FEES FOR POOL AND BILLIARD TABLES FROM FIVE DOLLARS TO TWENTY-FIVE DOLLARS PER YEAR AND TO INCREASE THE LICENSE FEE FOR AUTOMATIC AMUSEMENT DEVICES FROM TWELVE DOLLARS TO TWENTY-FIVE DOLLARS PER YEAR; REPEALING CHAPTER 4.28 OF THE EDMONDS CITY CODE AND ORDINANCE NO. 1041 OF SAID CITY. WHEREAS, the State of Washington by RCW Chapter 9.46 allows qualified persons licensed by the Washington State Gambling Com- mission to conduct certain gambling activities within its juris- diction subject to compliance with State law and the rules of the Washington State Gambling Commission, unless the particular gambling agency has been specifically prohibited by action of the City pursuant to State law, -and WHEREAS, State law makes it the duty of the law enforcement officials of the City, among others, to enforce the provisions of RCW Chapter 9.46 thus imposing an additional financial burden upon said City; and WHEREAS, the City is empowered to enact an ordinance to provide for the taxing of any gambling activities as authorized by State law that are conducted within its jurisdiction; now, therefore, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. A new chapter, 4.15, entitled "Taxation and Regulation of Gambling," is hereby created. -1- Section 2. A new section, 4.15.010, "Definitions" is hereby added to the Edmonds City Code to read as follows: "4.15.010 Definitions. For the purposes of this chapter, the words and terms used shall have the same meaning as each has under Chapter 218, Laws of the State of Washington, 1973 First Extraordinary Session, and RCW Chapter 9.46 and as they may be from time to time amended and as set forth under the Rules of the Washington State Gambling Commis- sion, Chapter 230 WAC as it may be amended from time to time unless otherwise specifically pro- vided." Section 3. A new section, 4.15.020, "Persons Subject to Tax --Tax Rates" is hereby added to the Edmonds City Code to read as follows: "4.15.020 Persons Subject to Tax --Tax Rate. There is hereby 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 the City of Edmonds, Washington: (1) Bingo, in 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 (10%), provided, however, there shall be allowed as an exemption from the levy of said tax, a sum equal to one hundred dollars per week for each week that Bingo is conducted. (2) Raffles, in 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 (10%), provided, however, there shall be allowed as an exemption from the levy of said tax, the sum of one hundred dollars per raffle, not to exceed a?total exemption of one hundred dollars per week. (3) Amusement Games, shall not be subject to the levy of a tax. (4) Fishing Derbies, in 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 (10%), provided, however, there shall be allowed as an exemption from the levy of said tax, the sum of one hundred dollars per fishing derby, not to exceed a total exemption of one hundred dollars per week. -2- (5) Punchboards or Pull -Tabs, in the amount of five percent (5%) of the gross receipts directly from the operation of the punchboards or pull -tabs themselves. (6) Card Playing, in the amount of twenty percent (20%) of the gross receipts received as fees charged persons for the privilege of playing in card games, provided, however, in no event shall any person, association or organization subject to the tax be permitted to have more than two tables for the purpose of card games in any one establishment, nor shall more than eight players be permitted per table." Section 4. A new section, 4.15.030, "Tax to be Computed and Paid Quarterly --Exceptions" is hereby added to the Edmonds City Code to read as follows: "4.15.030 Tax to be Computed and Paid Quarterly -- Exceptions. (1) Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter year, shall be due and payable in quarterly installments and remittance therefor, together with the return forms, shall be made to the City on or before the last day of the next month succeeding the quarterly period in which the tax accrued. Such payments shall be due on January 31, April 30, July 31, and October 31 of each respective year. (2) Provided, however, whenever any persons, associations and organizations taxed hereunder quits business, sells out, or otherwise disposes of its business, or terminates the business, any tax due hereunder shall become due and payable immediately and such taxpayer shall, within ten days thereafter, make a return and pay the tax due. (3) Whenever it appears to the City Clerk that the collection of taxes from any person, associa- tion or:organization may be in jeopardy, the Clerk, after not less than ten days notice to the taxpayer, is authorized to require that the taxpayer remit taxes due and returns at such shorter intervals than other- wise provided, as the Clerk shall deem appropriate under the circumstances. Section 5. A new section, 4.15.040, "Administration and Collection of Tax":is hereby added to the Edmonds City Code to read as follows: "4.15.040 Administration and Collection of Tax. (1) Administration and collection of the various taxes imposed by this chapter shall be the -3- responsibility of the City Clerk. Remittance of the amount due shall be accompanied by a completed return form prescribed and provided by the Clerk. The tax- payer shall be required to swear and affirm that the information given in the return is true, -accurate and complete. (2) The Clerk is authorized, but not required, to mail to taxpayers, forms for returns. Failure of the taxpayer to receive such a form shall not excuse the taxpayer from making the return and timely paying all taxes due. The Clerk shall have forms available to the public in reasonable numbers at the Civic Center during regular business hours. (3) 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." Section 6. A new section , 4.15.050, "Method of Payment" is hereby added to the Edmonds City Code to read as follows: 114.15.050 Method of Payment. Taxes payable hereunder shall be remitted to the City Clerk on or before the time required by bank draft, certified check, cashiers check, personal check, money order, or in 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 accep- tance of any sum by the Clerk be an acqu t.tanc:e or discharge of the tax unless the amount paid is the full amount due. The return, and copy of quarterly report to the Washington State Gambling Commission shall be filed in the office of the City Clerk after notation by the Clerk upon the return of the amount actually received from the taxpayer." Section 7. A new section, 4.15.060, "Failure to Make Timely Payment of Tax or Fee" is hereby added to the Edmonds City Code to reada:s follows: "4.15.060 Failure to Make Timely Payment of Tax.. or Fee. If full payment of any tax or fee due under this ordinance is not received by the City Clerk on or before the due date, there shall be added to the amount owing, a penalty fee as follows: (1) One- Thirty Days Late -- one percent of the tax due; (2) Thirty One to Sixty Days Late -- two percent of the tax due, but in no event shall the penalty amount be less _than,. twenty-five dollars. -a_ In addition to this penalty, the Clerk may charge the taxpayer interest of one percent of all taxes and fees due for each thirty -day period, or portion thereof, that said amounts are past due. 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 both a civil and criminal violation of this chapter. Section 8. A new section, 4.15.070 "Notice of Intention to Engage in Activity to be Filed" is hereby added to the Edmonds City Code to read as follows: "4.15.070 Notice of Intention to Engage in Activity to be Filed. In order that the City may identify those persons who are subject to taxation under this ordinance, each person, association or organization shall file with the City Clerk a sworn declaration of intent to conduct an activity taxable under this chapter, upon a form to be prescribed by the Clerk, together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made not less than ten days prior to conducting or operating the taxable activity. No fee shall be charged for such filing. Failure to timely file such declaration of intent shall not excuse any person, association or organization from any tax liability. Section 9. A new section, 4-15.080 "Records Required" is hereby added to the Edmonds City Code to read as follows: "4.15.080 Records Required. (1) Each person, association, or organiza- tion 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 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. (2) 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 -5- upon the demand of the City Clerk or her designee for the purpose of enforcing the provisions of this chapter. (3) Where taxpayer does not keep all of the books, records or items required to be kept or maintained under this section within the jurisdiction of the City so that the City Clerk may examine them conveniently, the taxpayer shall either: (A) Produce and make available for inspection in this jurisdiction all of the required books, records or other items within ten days following a request by the City Clerk that he do so; (B) Bear the'.actual,cost of inspection by the City Clerk or her designee at the location of which said books, records or items are located, provided that a taxpayer choosing to bear these costs shall pay in advance to the City Clerk the estimated costs ther- of, 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 examina- tion of the records. (4) A taxpayer -who fails, neglects or refuses to produce such books and records either within or without this jurisdiction, in addition to being subject to other civil and criminal penalties provided by this chapter shall be subject to a jeopardy fee or tax assessment by the City Clerk which penalty fee or jeopardy assessment shall be deemed prima facie correct and shall be the amount of the fee or tax owing by the taxpayer unless he can prove otherwise. The taxpayer shall be notified by the City Clerk by post- ir_g:in the mails of the United States, addressed to the taxpayer to the last address on file with the City Clerk, a statement of the amount of tax so determined by jeopardy assessment, together with any penalty and/ or interest, and the total of such amounts shall there- upon become immediately due and payable. Section 10. A new section, 4.15.090 "Overpayment or Underpayment of Tax".:is hereby added to the Edmonds City Code to read as follows: "4.15.090 Overpayment or Underpayment of Tax. If, upon application by a taxpayer for a refund or for an audit of his records, or upon any examination of the returns or records of any taxpayer, it is determined by the City Clerk that within three years immediately preceding receipt by the City Clerk of the application by the taxpayer for a refund or an audit, or in the absence of such an application, within three years immediately preceding the commencement by the City Clerk of such examination: M-12 (A) A tax or other fee has been paid in excess of that properly due, the total excess paid over all amounts due to the City 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 for any excess paid more than three years before the date of such application or examination. (B) 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 City 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." Section 11. A new section, 4.15.100 "Failure to Make Return" is hereby added to the Edmonds City Code to read as follows: "4.15.100 Failure to Make Return. If any taxpayer fails, neglects or refuses to make and file his return as and when required under this chapter, the City Clerk is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed under the provisions of this ordinance and by mail to notify such taxpayer of the amount so determined, which amount shall there- upon become the tax and penalty and/or interest and shall become immediately due and payable." Section 12. A new section, 4.15.110 "Tax Additional to Others" is hereby added to the Edmonds City Code to read as follows: "4.15.110 Tax Additional to Others. The taxes levied herein shall be additional to any license fee or tax imposed or levied under any law or other ordinance of the City except as otherwise herein expressly provided." Section 13. A new section, 4.15.120 "City Clerk to Make Rules" is hereby added to the Edmonds City Code to read as follows: "4.15.120 City Clerk to Make Rules. The City Clerk shall have the power, and it shall be her duty from time to time to adopt, publish and enforce rules and regulations not inconsistent with this chapter or other applicable laws for the purpose of carrying out the provisions hereof, and it shall be unlawful to violate or fail to comply with any such rule or regulation. -7- Section_ 14. A new section, 4.15.130 "Taxes, Penalties and Fees Constitute Debt to Municipality" is hereby added to the Edmonds City Code to read as follows: "4.15.130 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 the City and may be collected by Court proceedings the same as any other debt or like amount which shall be in addition to all other existing remedies." Section 15. A new section, 4.15.140 "Limitation on Right to Recovery" is hereby added to the Edmonds City Code to read as follows: "4.15.140 Limitation 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 calendar years from the date said tax became due. The right of recovery against the City because of overpayment of tax by any taxpayer shall be outlawed after the expiration of three calendar years from the date such payment was made." Section 16. A new section, 4.15.200 "Violation -- Penalties" is hereby added to the Edmonds City Code to read as follows: "4.15.200 Violation -- 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 City Clerk pursuant thereto, upon conviction thereof, shall be subject to being punished by a fine in a sum not to exceed Two Hundred Fifty Dollars ($250) Or by imprisonment in 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 activities 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 conducted." Section 17. A new section, 4.15.300 "Severability" is hereby added to the Edmonds City Code to read as follows: "4.15.300 Severability. If any provision or section of this chapter shall be held void or unconstitutional for any reason, all other parts, provisions and sections of this chapter not expressly so held to be void or unconstitutional shall continue in full force and effect. we Section 18. Chapter 4.16 of the Edmonds City Code and Ordinance No. 833, passed on August 16, 1960, are hereby repealed. Section 19. Section 4.24.010 of the Edmonds City Code is hereby amended to read as follows: "4.24.010 Pool or Billiard Rooms-- Revocation of License. The license of any person, firm or corporation to conduct, operate or manage any pool room or billiard room within the limits of the City of Edmonds, granted under the provisions of Section 4.24.010 through 4.24.050, or as the same may hereafter be amended, shall be immediately cancelled and revoked when any such person, firm or corporation shall have been convicted in the Municipal Court of the City of Edmonds or other court having jurisdiction for a violation of any of the provisions of section 4.20.010 through 4.20.050 of the Edmonds City Code or any provisions of any ordinance of the City of Edmonds relating to gambling, disorderly conduct or to the manufac- turing, possession, sale, barter, exchange, giving away, furnishing or otherwise disposing of or keeping intoxicating liquor, or when any such person, firm or corporation shall have been convicted in any of the Courts of the State of Washington under the provisions of the Laws of the State of Washington relating to gambling or to manufacturing, possession, sale, barter, exchange, giving away, furnishing or otherwise disposing of or keeping intoxicating liquor." Section 20. Section 4.24.020 of the Edmonds City Code is hereby amended to read as follows: "4.24.020 Pool or Billiard Room License -- When Not Granted. No license shall be granted to conduct, operate or manage any pool room or billiard room in the City of Edmonds, to any person, firm or corpora- tion who has been convicted in the Municipal Court of the City of Edmonds or other court having juris- diction of the violation of any of the provisions of Section 4.24.010 through 4.24.050 of the Edmonds City Code or of any ordinance of said City relating to disorderly conduct or for the violation of any ordinance of said city relating to intoxicating liquors, or that has been convicted in any of the courts of the State of Washington under the pro- visions of the laws of said state relating to gambling or the manufacturing, possession, sale, barter, exchange, giving away, furnishing or other- wise disposing of or keeping intoxicating liquor." Section 21. Section 4.24.030 of the Edmonds City Code is hereby amended to read as follows: "4.24.030 Pool or Billiard Rooms -- Hours of Opera- tion. It shall be unlawful for the owner, proprietor, manager or other person in charge of or employed in any public billiard room or pool room in the City of Edmonds, to keep such place open for business or permit any person to play billiards or pool therein between the hours of 2:00 a.m. and 7:00 a.m." Section 22. Section 4.24.060 of the Edmonds City Code is hereby amended to read as follows: "4.24.060 License Fee -- Billiard and Pool Tables. The license fee for keeping and operating any billiard or pool table within the City of Edmonds, is hereby fixed at the sum of twenty five dollars ($25) per year for each table. All such license fees shall expire on December 31 of each year, and any such license taken out after July 1 of each respective year shall be in the sum of twelve dollars and fifty cents ($12.50) for the remainder of that year." Section 23. Section 4.24.070 of the Edmonds City Code is hereby repealed. Section 24. Section 4.24.080 of the Edmonds City Code is hereby amended to read as follows: "4.24.080 License Fee -- Automatic Amusement Devices. The license fee for keeping and operating any auto- matic amusement game, so called games of skill, juke boxes or other automatic music machines, in the City of Edmonds, shall be twenty five dollars ($25.00) per year for each game or machine. All such licenses shall expire on December 31 of each respective year and all such licenses taken out after July 1 of each respective year shall be twelve dollars and fifty cents ($12.50) for the remainder of the year." Section 25. Section 4.24.090 of the Edmonds City Code is hereby amended to read as follows: "4.24.090 License Required. It shall be unlawful for any person, firm or corporation to operate any such pool table, billiard table, automatic game or so called game of skill, juke box or other automatic music machine within the City of Edmonds without having first procured a license from the City Clerk and having paid the amount of such license fees to the City." -10- Section 26. Chapter 4.28 of the Edmonds City Code and Ordinance No. 1041, passed February 3, 1964, are hereby repealed. APPROVED MAYOR ' ATTEST: r 1 \ Z��� CITY CLERK Filed with the City Clerk: February 25, 1975 Passed by the City Council: ''larch 25, 1975 Published: April 2, 1975 -11-