Ord 96-279
ORDI:NAlfCB NO.
96-279
AN ORDI:HAHCB OP THB CI:TY COUNCI:L OP THB CI:TY
01' I'BDBRAL WAY, WASRI:NGTON, AMDIDI:NG I'BDBRAL
WAY CI:TY CODE CHAPTER 14, SBCTI:ONS 14-144,14-
146 AND 14-147 RBGARDI:NG THB COLLBCTI:ON 01'
GAMBLI:NG TAXBS
(AMDIDS ORDI:NAlfCBS 90-15,90-44,91-101 AND 96-268).
WHEREAS, the City of Federal Way is permitted by law to
levy a tax on gambling activity conducted in the City; and
WHEREAS, the state currently allows that no tax shall be
imposed on the first ten thousand dollars of net proceeds from
raffles
conducted
by
any
bonafide
charitable
or
nonprofit
organization; and
WHEREAS, the city of Federal Way currently allows that no
tax shall be imposed on the first five thousand dollars of net
proceeds from raffles conducted by any bonafide charitable or
nonprofit organization; and
WHEREAS, it is in the best interest of the citizens of
Federal Way that the city code be reconciled with state law; and
WHEREAS, the current system of reporting and collecting
gambling taxes on a monthly basis imposes a serious administrative
burden on Federal Way businesses; and
WHEREAS, a system of reporting and collecting gambling
taxes on a monthly basis only for those gambling establishments
with high gross receipts from gambling activities would permit
close monitoring of gambling activity and allow the City to
commence enforcement action for unpaid gambling taxes quickly
ORD #
96-279
, PAGE 1
C(Q)~1f
without imposing the same requirement for gambling establishments
with low gross receipts from gambling activities;
NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
section
1.
Amendment.
The Federal Way City Code
("FWCC") shall be amended as follows:
A.
Charitable or NonDrofit Oraanizations.
FWCC section 14-144
shall be amended as follows:
Sec. 14-144.
Tax on gambling activities
(a) In accordance with RCW 9.46.110, there is levied upon all
persons a tax on every gambling activity permitted by this division
at the following rates:
(1) Any bingo or raffle activity shall be taxed at a rate
of ten percent of the gross revenues received therefrom less the
amount paid for as prizes;
(2)
An amusement game shall be taxed only at a rate
sufficient to pay the actual costs of. enforcement of the provisions
of this division and RCW ch. 9.46 and such taxation shall not
exceed two percent of the sum of the gross revenues received
therefrom less the amount paid for as prizes;
(3) Any punchboard or pull-tab activity at a rate of five
percent of gross receipts;
(4) Any social card game at a rate of 11 percent of the
annual gross receipts exceeding $10,000.00;
(5)
Fund-raising activities
at the applicable rates
specified above.
ORD # 96-279
, PAGE 2
Provided, no tax shall be imposed pursuant to this section on
bingo, raffles, amusement games or fund-raising activities when
such activities or any combination thereof are conducted by a bona
fide
charitable
or
nonprofit
organization
as
defined
in RCW
9.46.0209, which organization has not paid operating or management
personnel and has gross income from bingo, raffles, amusement games
or fund-raising activities or any combination thereof not exceeding
$5,000.00 per year less the amount paid for as prizes or has net
income from raffles not exceedina $10.000.00 per vear.
(b)
The city clerk is instructed and authorized to adopt
appropriate
reporting
requirements,
to
ensure
the
effective
administration of license holders exempt from the payment of such
tax.
B.
Reportina of Gamblina Activitv.
FWCC section 14-146 shall be
amended as follows:
Sec. 14-146. Declaration of intent to conduct activity.
For the purpose of identifying who shall be subject to the tax
imposed by this division, any bona fide charitable or nonprofit
corporation intending to conduct or operate any bingo game raffle
or amusement game which requires licensing as provided in and
authorized by RCW ch. 9.46 shall, prior to commencement of any such
activity, file with the city clerk a sworn declaration of intent to
conduct or operate such activity, together with a copy of the
license issued in accordance with RCW ch. 9.46.
Thereafter, for
any period covered by such state license or any renewal thereof,
any such licensed bona fide charitable or nonprofit corporation
ORD # q¡;-?7q
, PAGE 3
shall, on or before the 15th day of the month following the end of
the period in which the tax accrued, file with the city clerk a
sworn statement, on a form to be provided and prescribed by the
city clerk for the purpose of ascertaining the tax due for the
preceding ~ reportina period.
COrd. No. 90-15, S 6, 1-30-90)
C.
Reportina Period.
FWCC section 14-147 shall be amended as
follows:
8eo. 14-147. When due; de1inquenoy.
a.
~e ~ax impaseà hy ~his ài7isiaft shall he due aftà ~ayaèle
iR maR~hly iRstallmeftts, aRà remittaRee therefar shall
aeeampaRY such returR, aft a farm preserièeà hy the City
CIerI.,
aRà he made aft ar befare the last day af the
maft~h Reut sueeeeàift~ ~fte maRta ift wieR the tau aesnleà.
The tax imposed bv this division shall be due and pavable
and remitted with such return. on a form prescribed bY
the citv Clerk. on or before the last day of the month
succeedina the reportina period in which the tax accrued.
The reportina period shall be as follows:
For those aamblina establishments whose annual aross
C1}
receipts from aamblina activities durina the precedina year
were
$10.000.00
or
less.
the
reportina
period
shall
be
auarterlY.
C2}
For those aamblina establishments whose annual aross
receipts from aamblina activities durina the precedina year
ORD # 96-279
, PAGE 4
were in excess of $10.000.00. the reportina period shall be
monthlv.
b.
For each reporting period, if the tax return or payment
is not made by the due date thereof, interest and penalty
shall be added as follows:
(1)
If filed on or before the 15th day of the second month
next succeeding the ~ reportina period in which the tax
accrued, a ten percent 10% penalty, with a minimum penalty of
$5.00.
(2)
If filed prior to the last day of the second month next
succeeding
the ~ reportina period
in which
the
tax
accrued, a fifteen 15% percent penalty with a minimum penalty
of $10.00.
(3)
Interest shall accrue, from the date such tax is due
until paid in full,
at a rate of 12 percent per annum,
compounded daily,
on the principal interest and penalties
imposed pursuant to this subsection.
(4)
Failure to make payment by the last day of the second
month succeeding the ~ reportina period in which the tax
accrued shall be both a criminal and civil violation of this
section.
section
2.
Severabilitv.
The
provisions
of
this
ordinance are declared separate and severable.
The invalidity of
any clause, sentence, paragraph, subdivision, section, or portion
of this ordinance or the invalidity of the application thereof to
any person or circumstance, shall not affect the validity of the
ORD # 96-279
, PAGE 5
remainder of the ordinance, or the validity of its application to
other persons or circumstances.
section 3.
Ratification.
Any act consistent with the
authority and prior to the effective date of this ordinance is
hereby ratified and affirmed.
section 4.
Effective Date.
This ordinance shall take
effect and be in force five (5) days from the time of its final
passage, as provided by law.
ORD # 96-279
, PAGE 6
PASSED by the City Council of the City of Federal Way
this
,,3
day of j)e>rRmf'"pf
, 1996.
CITY OF FEDERAL WAY
.2f¡f~ .j? K,--YT
YOR, MARLON S. PRIEST
APPROVED AS TO FORM:
~ '
~/ ,.~K. LINDELL>
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
11-19-96
12-03-96
12-07-96
12-08-96
K:\ORDIN\GAMBLE2.BNL
9-5-96(96-202)
ORD # 96-279
, PAGE 7