ORD 17-831 - Relating to Imposition on an Admissions TaxORDINANCE NO. 17 -831
AN ORDINANCE of the City of Federal Way, Washington, relating to
the imposition of an admission tax.
WHEREAS, the City of Federal Way is a non - charter code city pursuant to Title 35A RCW;
and
WHEREAS, RCW 35.21.280 authorizes every city to levy and fix a tax of not more than one
cent on twenty cents or fraction thereof to be paid by the person who pays an admission charge to
any place; and
WHEREAS, the City Council desires to increase revenue to fund its operations and believes
that taxing admissions where appropriate will further this goal;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Title 3 of the Federal Way Revised Code is amended to add a new Chapter 3.60,
"Admissions Tax," as follows:
Chapter 3.60
ADMISSIONS TAX
3.60.010 Levy and amount.
There is levied and imposed upon any person who is charged an admission fee to any place,
including persons who are admitted free of charge, or at reduced rates, to any place in the amount
of five percent of the admission charge, except that no tax in excess of sixty cents ($0.60) per
ticket of admission sold shall be collected. No persons shall sell or otherwise distribute tickets of
admission which disclose a rate of admission tax other than as provided in this chapter.
3.60.020 Exemptions.
The admissions tax as imposed in this chapter shall not apply to anyone paying an admission
charge:
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1. In the amount of One Dollar and Fifty Cents ($1.50) or less; or
2. To any activity of any elementary or secondary school as contemplated by RCW
35.21.280; or
3. To any activity of any Parent- Teacher Association (PTA), or similar organization,
provided that the proceeds of the activity are used to benefit an elementary or
secondary school; or
4. To an organized athletic event such as tournaments, leagues, and other competitions
intended for youth less than 19years of age, sponsored and held by non - profit
organizations; or
5. The admission of spectators to an athletic event, including, but not limited to, football
games, basketball games, or baseball games; or
6. The admission for recreational activities, including, but not limited to, golf, skating,
or swimming.
3.60.030 Complimentary admissions.
Anyone who is admitted free of charge to any place or for any event for which other persons
pay an admission charge shall pay an admission tax measured by the full admission charge,
unless:
1. Admission is free to the public generally on the date or for the event; or
2. Admission is free to a general classification of the public (e.g., children, senior
citizens, or military personnel in uniform) and the entrant is a member of the
classification; or
3. The complimentary admissions are distributed for bona fide charitable purposes
or through any bona fide charity, or are distributed through any elementary or
secondary school; or
4. The persons so admitted are performers, people assisting in the performance or
activity, or bona fide members of the press; or
5. The holder of the certificate of registration has paid the amount of the admission
tax on the admission.
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3.60.040 Discount admissions.
Anyone who is admitted at a reduced price to any place or for any event for which other persons
pay a regular, higher admission charge shall pay an admission tax measured by the regulars
higher admission charge, unless:
1. The reduced charge is based on the quantity sold or a payment made before a calendar
date in advance of the event; or
2. The reduced charge is available to a general classification of the public identified in
rates posted or published for the event (e.g., children, senior citizens, or military
personnel); or
3. The event is scheduled at a time less convenient for the public Le.g., a matinee or
midnight performance); or
4. The reduced charge is based on the presentment of a coupon distributed broadly as a
notice or advertisement; or
5. The reduced charge results from the donation of tangible personal property (e.g., food,
clothing or toys) at the place of admission as an organized collection for delivery to a
bona fide charity.
In cases that satisfy one (1) or more of these conditions, the admission tax shall be measured
based on the reduced charge actually paid for admission.
3.60.050 Collection and remittance of tax.
1. Every person receiving any payment for admission for which a tax is levied under this
chapter (Collecting Entity) shall collect the amount of the tax imposed from the person
making the admission payment. The tax required to be collected under this chapter shall
be deemed to be held in trust by the Collecting_Entity until paid to the Finance Director as
provided in this chapter. Any person required to collect the tax imposed under this
chapter who fails to collect the same, or having collected the same fails to remit the same
to the Finance Director in the manner prescribed by this chapter, shall be personally liable
to the city for the amount of such tax, and unless the remittance is made as required in
this chapter, is guilty of a violation of this chapter.
2. The tax imposed hereunder shall be collected at the time the admission charge is paid
and shall be reported and remitted by the Collecting_Entity to the Finance Director in
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monthly installments on or before the fifteenth day of the month following the month in
which the tax was collected. Remittance may be made by check, but payment by check
shall not relieve the Collecting Entity of liability for remittance of the tax to the city
unless the check is honored and is in the full and correct amount.
3. The Collecting Entity shall make out a return upon such forms as the Finance Director
may require, showing the amount of the tax upon admissions for which the Collecting
Entity is liable from the preceding monthly period, and shall sign and transmit the said
forms to the Finance Director, along with a remittance for said amount.
4. Whenever any theater, circus, show, exhibit, entertainment or amusement makes an
admission charge, and is subject to the tax levied in this chapter, and the same is of a
temporary or transitory nature, of which the Finance Director shall be the judge, the
Finance Director may require a report and remittance of the admission tax immediately
upon the collection of the same, at the conclusion of the performance or exhibit, or at the
conclusion of the series of performances or exhibits, or at such other times as the Finance
Director shall determine.
5. Whenever any Collecting Entity stops doing business, transfers ownership, or
otherwise terminates the business, any admission tax collected shall become due and
payable immediately, and the Collecting Entity shall submit a return form and pay the tax
due within ten (10) days of the termination of business.
6. Whenever it appears to the Finance Director that the collection of taxes from any
Collecting Entity may be in jeopardy, the Finance Director, after not less than ten (10)
days prior written notice to the Collecting Entity, may require that the Collecting Entity
remit taxes due at shorter intervals than otherwise prescribed in this chapter.
3.60.050 Certificate of registration. Application and issuance.
Any Collecting Entity shall procure from the Finance Director a certificate of registration, the fee
for which shall be as defined in the City's Fee Schedule, by applying on a form prescribed by the
Finance Director. Certificates of registration shall be valid for twelve months following the issue
date of the certificate of registration . Such certificate of registration shall be posted in a
conspicuous place where tickets of admission are sold.
3.60.060 Certificate of registration. Transitory events.
Whenever a certificate of registration is obtained for the purpose of operating or conducting a
temporary or transitory amusement, entertainment or exhibit by persons who are not the owners,
lessees or custodians of the building, lots or place where the amusement is to be conducted, the
tax imposed by this chapter shall be reported and remitted as provided for in this chapter by said
owner, lessee or custodian, unless paid by the person conducting the place. The applicant for a
certificate of registration for such purpose shall furnish with the application therefor, the name
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and address of the owner, lessee or custodian of the premises upon which the amusement is to be
conducted and such owner, lessee or custodian shall be notified by the Finance Director of the
issuance of such certificate, by mail or otherwise, and of the joint liability for collection and
remittance of such tax.
3.60.070 Record Keeping
1. Each Collecting Entity shall maintain records respecting that activity which truly,
completely, and accurately disclose all information necessary to determine the Collecting
Entity's tax liability. Such records shall be kept and maintained for a period of not less
than three (3) years.
2. All records required to be kept and maintained under this section shall be subject to
immediate inspection and audit at any time, with or without notice, at the place where
such records are kept upon the demand of the Finance Director, or his or her designee, for
the purpose of enforcing the provisions of this chapter.
3. Where a Collecting Entity does not keep all of the required records within the
boundaries of the city so that the auditor may examine them conveniently, the Collecting
Entity shall either:
A. Produce and make available for inspection within the city all of the required
records within ten (10) days following a request by the Finance Director or his or
her designee that the Collecting Entity do so; or
B. Bear the actual cost of inspection by the Finance Director or the designee at
the location where the records are located. The Collecting Entity shall pay in
advance to the Finance Director the estimated costs thereof, including, but not
limited to, round trip fare by the most rapid means, lodging, meals, and incidental
expenses. The actual amounts due or to be refunded for expenses shall be
determined following the examination of the records.
4. When an admission tax has not been remitted, or when a tax has been paid that is less
than that properly due, the Finance Director shall determine the amount of tax due and
mail a statement to the Collecting Entity, stating the balance due, including the tax
amount and any penalty assessments or fees. It shall be a separate, additional violation of
this chapter, both civil and criminal, if the collecting entity fails to make payment in full
within ten (10) calendar days of that mailing.
3.60.080 Adoption of additional rules and regulations.
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The Finance Director may adopt rules and regulations not inconsistent with the terms of this
chapter in order to administer the collection and remittance of the tax levied in this chapter. A
copy of such rules and regulations shall be on file and available for public examination in the
Finance Director's office. Failure to follow those rules established by the Finance Director shall
constitute a violation of this chapter.
3.60.080 Violation. Penalty.
Each violation or failure to comply with the provisions of this chapter constitutes a separate offense,
conviction of which shall subject a violator to a fine not to exceed five hundred dollars per violation.
Section 2. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase
of this chapter, or its application to any person or situation, be declared unconstitutional or invalid
for any reason, such decision shall not affect the validity of the remaining portions of this chapter or
its application to any other person or situation. The City Council of the City of Federal Way hereby
declares that it would have adopted this chapter and each section, subsection, sentence, clauses,
phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections,
sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
Section 3. Corrections. The City Clerk and the codifiers of this ordinance are authorized to
make necessary corrections to this ordinance including, but not limited to, the correction of
scrivener /clerical errors, references, ordinance numbering, section/subsection numbers and any
references thereto.
Section 4. Ratification. Any act consistent with the authority and prior to the effective date of
this ordinance is hereby ratified and affirmed.
Section 5. Effective Date. This ordinance shall take effect and be in force thirty (30) days
from and after its passage, as provided by law.
PASSED by the City Council of the City of Federal Way this 17th day of January, 2017.
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ATTEST:
CITY OF FEDERAL WAY
ERK, STEPHANIE C TNEY, CMC
APPROVED AS TO FORM:
ACTING CITY ATTORNEY) J 141Ah Ca Al
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.:
Ordinance No. 17 -831
12/29/2016
01/17/2017
01/20/2017
02/16/2017
17 -831
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