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HomeMy WebLinkAbout2024-015 - Ord. Revising Ord. 18-12 Updating County Code Chapter 3.17 Gambling Tax Rate ORDINANCE NO. 2014_015 REVISING ORDINANCE NO. 18-12 and UPDATING COUNTY CODE CHAPTER 3.17 GAMBLING TAX RATE FOR PUNCH BOARDS AND PULL-TABS WHEREAS, RCW 9.46.110 states"(1) The legislative authority of any county, city-county, city or town, by local law and ordinance and in accordance with the provisions of this chapter and rules adopted under this chapter within in its jurisdiction, the tax receipts to go to the county, city-county, city or town so taxing the activity. Any such tax imposed by a county alone shall not apply to any gambling activity within a city or town located in the county,but the tax rate established by a county, if any, shall constitute the tax rate throughout the unincorporated areas of such county." WHEREAS, it is the intent of the Board of Mason County Commissioner's to levy a tax in an amount provided by State Law on persons operating gambling activities pursuant to RCW 9.46.0217 within the unincorporated areas of Mason County; but not to levy a tax on"bona fide charitable or nonprofit organizations"as defined below; NOW THEREFORE,there is hereby levied upon and shall be collected from and paid by every person receiving money or value from punch boards and pull-tabs as authorized by state laws, a tax in the amount of three percent(3%) of the gross receipts from the operation of the games(punch boards and pull tabs). 1. DEFINITIONS. Person(s) Means any individual, firm,partnership, association, corporation, company, or group of individuals working for a common purpose or an organization of any kind. Bona fide charitable or nonprofit organizations Means any nonprofit organization duly existing under the provisions of state law, or any other nonprofit corporation duly existing under the provisions of Chapter 24.03 RCW for charitable, benevolent, eleemosynary, educational, civil,patriotic, political, social, fraternal, athletic, or agricultural purposes only. Gross receipts Means the total sum of money or value received from punchboards or pull tabs activity before the deduction is taken for operational and maintenance expenses, capital outlay, cost of prizes, or any other expense of any kind or nature. 2. ACTION ON OPERATION CESSATION 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 ten days thereafter, notify the county treasurer and make a return and pay the tax due. J:\RESOLUTIONS&ORDINANCES\RESOLUTIONS-ORDINANCES Word Files\2024\Gambling Tax Ordinance fmal.docx 3. SHORTER PAYMENT INTERVALS WHEN Whenever it appears to the Mason County Treasurer that the collection of taxes from any person, association or organization may be in jeopardy,the Mason County Treasurer, after not less than five days' notice to the taxpayer, is authorized to require the taxpayer to remit taxes and return at such shorter intervals than quarterly or annually, as the Mason County Treasurer deems appropriate under the circumstances. 4. PAYMENT OF TAX Payment of the tax imposed by this ordinance shall be due and payable quarterly in each calendar year, and payment shall be remitted to the Mason County Treasurer, on the form provided by the county treasurer on or before the due date by bank draft, certified check, cashier's check,personal check, business check, money order, or cash. If payment is made by bank draft or check,the tax shall not be deemed paid until the draft or check has cleared by the bank,nor shall any acceptance of any sum by the Mason County Treasurer be an acquittance or discharge of the tax unless the amount paid is the full amount due. The gambling tax return and copy of the quarterly report to the Washington State Gambling Commission, shall be remitted with payment to the Mason County Treasurer within 30 days from the end of the quarter or on or before the last business day of that month.-The taxpayer shall swear or affirm that the information given on the tax return is full an true and correct. Whenever the total tax due does not exceed the sum of Twenty-five Dollars ($25.00)for any quarterly period, an annual return may be made if approved by the Mason County Treasurer. When a taxpayer begins business during any quarterly period,his/her first return or tax shall be based upon and cover the portion of the quarterly period during which he/she conducted business. 5. PENALTY FOR DELINQUENT PAYMENTS AND LATE RETURNS If full payment of any tax or fee due under this chapter is not received by the Mason County Treasurer on or before the date due,there shall be added to the amount due a penalty fee as follows: (1) One (1)through ten(10) days late, five percent(5%)of the tax due (2) Eleven(11)through twenty(20) days late, seven and one-half percent(7.5%)of the tax due (3) Twenty-one (21) through thirty-one (3 1)days late, ten percent(10%)of the tax due (4) Thirty-two (32)through sixty (60) days late, fifteen percent(15%) of the tax due JARESOLUTIONS&ORDINANCES\RESOLUTIONS-ORDINANCES Word Files\2024\Gambling Tax Ordinance final.docx In no event shall the penalty amount be less than ten dollars. In addition to this penalty the Mason County Treasurer shall charge the taxpayer interest of twelve percent(12%) per year on all taxes and fees delinquent for more than thirty (30)days. 6. NOTICE OF INTENT TO ENGAGE IN GAMBLING ACTIVITY In order that Mason County may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the Mason County Treasurer a sworn declaration of intent to conduct an activity taxable under this chapter upon a form prescribed by the Mason County Treasurer,together with a copy of the license issued therefor by the Washington State Gambling Commission. The filing shall be made no later than ten(10) days prior to conducting or operating the taxable activity. Failure to file shall not excuse any person, association or organization from any tax liability. 7. TAX RECORDS TO BE KEPT 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 based tax period. Such records shall be kept and maintained for a period of not less than three (3)years. In addition, all information and items required by the Washington State Gambling Commission under WAC Chapter 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 or other items required to be kept and maintained under this section shall be subject to, and immediately made available or produced for inspection and audit at any time, with or without notice, at the place where such records are kept upon demand by any Mason County law enforcement officer or agency for the purpose of enforcing the provisions of this chapter. The person, association or organization will bear the actual cost of inspections by any Mason County law enforcement officer or agency. The estimated costs shall be paid in advance to the Mason County law enforcement agency and include,but are not limited to,round trip fare, lodging, meals and incidental expenses. The actual amount due, or to be refunded, for expenses shall be determined following examination of the records. 8. OVER AND UNDER PAYMENT OF TAX If within three (3)years from the date of payment, the Mason County Treasurer fords that the tax paid on any tax return exceeds the amount required,the Treasurer shall refund the amount overpaid. If the Mason County Treasurer fords the tax paid is less than required, the Treasurer shall mail a statement to the person showing the balance due, and such person shall within,ten(10)calendar days to pay the amount shown due. Failure to pay additional taxes due in a timely manner will result in additional penalties and interest as assessed under the provisions of this chapter. J:\RESOLUTIONS&ORDINANCES\RESOLUTIONS-ORDINANCES Word Files\2024\Gambling Tax Ordinance final.docx 9. FAILURE TO FILE A RETURN If any person fails,neglects, or refuses to file a return as required,the Mason County Treasurer is authorized to determine the amount of tax due,together with any penalty and/or interest assessed under the provisions of this chapter, and by mail to notify the taxpayer of the amount so determined to be due. The determined amount due shall, upon notification by mail,become immediately payable. 10.APPEAL TO THE BOARD OF COUNTY COMMISSIONERS Any taxpayer aggrieved by the amount of tax found by the Mason County Treasurer to be due may appeal the amount of the tax to the Board of Mason County Commissioners by filing a written notice of appeal with the Clerk of the Board of the Mason County Commissioners within five (5) business days from the date such person received notice of the amount of tax due. The Board of Mason County Commissioner's shall fix a time and place for a hearing of such appeal, which shall not be more than three (3)weeks after the filing of the notice of appeal. The Board of Mason County Commissioners shall mail a notice of the hearing to appellant. At such hearing,the appellant shall be entitled to be heard and to introduce evidence in his/her own behalf. The Board of Mason County Commissioners shall determine the correct amount of the tax by order. The appellant must pay the tax amount due within five (5)business days after receipt of the Board of County Commissioners order. The Chair of the Board of Mason County Commissioners may require the attendance of any person(s) at the hearing and may require any such person(s)to produce any pertinent records. It shall be unlawful for any such person(s)to fail to appear in response to a subpoena; and unlawful for any such person to fail or refuse to produce the required records or to fail to testify truthfully under oath. 11. COUNTY TREASURER TO MAKE RULES The Mason County Treasurer shall have the power to adopt,publish, and enforce rules and regulations consistent with this Ordinance and State Law for the purpose of carrying out the provisions of this Ordinance; and it shall be unlawful to violate or fail to comply with any such rule or regulation. 12.FALSE RETURNS UNLAWFUL It shall be unlawful for any person liable for the tax to fail to or refuse to file the required returns, or to fail to or refuse to pay the tax due; or for any person to make a false or fraudulent return or any false statement or representation in, or in connection with any such return, or to aid or abet another in any attempt to evade payment of the tax, or any part of the tax. J:\RESOLUTIONS&ORDINANCES\RESOLUTIONS-ORDINANCES Word Files\2024\Gambling Tax Ordinance final.docx 13. CRIMINAL PENALTIES Any person violating any of the provisions or failing to comply with any of the mandatory requirements of this Ordinance shall be guilty of a misdemeanor. Any person convicted of a misdemeanor under this Ordinance shall be punished by a fine of not more than Five Hundred Dollars ($500.00) or by imprisonment not to exceed ninety days, or by both, consistent with state laws. Each such person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of the Ordinance is committed, continued, or permitted by any such person, and he/she shall be punished accordingly. 14. LIEN OF TAXES IMPOSED Taxes imposed by the Ordinance as stated in Chapter 9.46.110 (4)become a lien upon the personal and real property used in the gambling activity in the same manner as provided for under RCW 84.60.010. The lien shall attach on the date the tax becomes due and shall relate back and have priority against the real and personal property to the same extent as ad valorem taxes. 15. CIVIL ACTION TO COLLECT TAXES,INTEREST,PENALTIES AND FEES Where the tax is one imposed by a county, city or town under RCW 9.46.110, any such action shall be brought by that county, city or town on its own behalf. An action may be- brought whether the person owing the amount is at such time a licensee pursuant to the provisions of Chapter 9.46.350 RCW. If such an action is brought in the courts of this state, a writ of attachment may be issued and no bond or affidavit prior to the issuance thereof shall be required. In all actions in this state,the records of the county, city or town, shall be prima facie evidence of the determination of the tax due or the amount of the delinquency. 16. INTERPRETATION This Ordinance shall be subject to the laws of the State of Washington,particularly Chapter 9.46 RCW, and the rules and regulations of the Gambling Commission of the State of Washington. In the event any section or portion of this Ordinance should be held by a court of competent jurisdiction to be invalid,the remaining portions not so held to be invalid shall remain in full force and effect. 17.EFFECTIVE DATE This ordinance shall be effective April 1, 2024. Approved this 27th day of February 27, 2024. J:\RESOLUTIONS&ORDINANCES\RESOLUTIONS-ORDINANCES Word Files\2024\Gambling Tax Ordinance final.docx Gambling Tax Ordinance MASOXINTY COMMISSIONERS II R�rZy Neatherlin, Chair 1 �24;r — Kevin Shutty, Vik Chair Attest: Sharon Trask, Commissioner McKenzie Srmth Cl& of the Board Approved as to ivil Deputy Prosecuting Attorney J:\RESOLUTIONS&ORDINANCES\RESOLUTIONS-ORDINANCES Word Files\2024\Gambling Tax Ordinance final.docx