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.
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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
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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.
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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.
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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.
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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
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