Ord 02-432ORDINANCE NO. 02-432
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, PROVIDING FOR TAXES
UPON PERSONS WHO PAY AN ADMISSION CHARGE TO ANY
PLACE FOR THE PURPOSE OF RECREATION AND
AMUSEMENT WITHIN THE CITY LIMITS; ADDING NEW
SECTIONS 14-131 TO 14-137 AND 14-151 TO 14-157 TO THE
CITY OF FEDERAL WAY CITY CODE AND PROVIDING FOR
RELATED MATTERS.
WHEREAS, the state legislature repealed the Motor Vehicle Excise Tax which
reduced the Public Safety funding for all local governments and will cease to provide substitute
funds as promised; and
WHEREAS, the voters of the state have passed tax limiting initiatives which limit
the increase in property tax growth rate to the lower of 1% or inflation which does not keep pace
with the public safety cost increases; and
WHEREAS, as part of the 2003-2004 budget deliberation process, the City
Council has determined that it is advisable to increase the service levels in the area of public
safety in public schools and on city streets;
WHEREAS, State law permits the City to levy a tax not to exceed 5% on charges
for admission to recreation or amusement facilities and places; and
WHEREAS, the City deems it necessary and advisable to adopt measures
providing increased revenue to fund the proposed increase in public safety service demands
commencing January 1, 2005;and
WHEREAS, the City intends that the enactment of this ordinance will provide
sufficient notice to any and all concomitant agreements for the collection of said admissions tax;
ORD # 02-432
, PAGE 1
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Administration. Chapter 14, Article IV, Division 1 of the Federal
Way City Code is hereby amended as follows:
Division 1. Generally
!/I '1"21 14 1/11t'i l:}n~,.~..,.:,~t]
14-131 Definitions.
For purpose of this division the words and phrases used in this section shall have
the tbllowing meanings unless the context otherwise indicates:
Director shall mean the Management Services Director or other employee or
agent of the city desi ~ated by the City Manager.
114-132 Administration.
The director shall have the power, and i.t shall be his or her duty. from time to
time~ to adopt, publish and enforce rules and regulations not inconsistent with this chapter or
with thc taw lbr the purpose of carrying out the provisions thereof: and it is unlawfitl to violate or
fail to coml21_y with anX such rule or regulation.
14-133 Failure to make returns or to pay the tax in full.
If any person ihils, neglects or refuses to make its return as and when required
herein, the dircclor is attthorized to determine the am. ount of tax payable, and by :mail to notify
such taxpayer of the amount so determined. The amount so fixed shall thereupon be the tax and
be immediately due m~d payable, together with penalty and interest. Delinquent taxes, including
any penalty and interest, are subject to an interest charge of twelve percent (12%) per year on any
Unpaid balance fi'om the date the tax became due as provided in this chapter until paid.
ORD # 02-/432 , PAGE 2
14-134 Penalty for delinquent payment.
Ii5 m~y person, subject to this tax fhils to pay any tax required by this chapte_r
within fifteen days after the due date thereof~ there shall be added to such tax a penalty of ten
percent (10% 1 of the amount of such tax, and any tax due under this chapter wh.ich is unpaid and
all penallies thereon shall constitute a debt to thc City and may be collected by court proceedings,
which remedy shall be in addition to all other remedies.
14-135 Overpayment of tax.
Any money paid to the City through error, or otherwise not in payment of the tax
imposed bv this chapter, or in excess of such tax, shall, upon appropriate proof provided by the
taxpayer and approved by the director, be credited against an,,, tax due or to become due from
such taxpayer hereunder, or, upon the taxpayer ceasing to do business in the City, be refunded to
the taxpayer.
14-136 Noncompliance - Penalty.
Any person, subject to this chapter, who fails or ret~ses to apply for a business
license or to make tax returns or to pay any tax when due, or who makes any false statement or
Lepresentation in connection with any such application for a business license or tax return, or
who otherwise violates or refuses to comply with this chapter, is guilty of a misdemem~or, and
each. such person, is guilty of a separate offense for each and eye,w., day or portion thereof during
which any violation of any of the provisions of this chapter is committed, continued or permitted,
and upon convicti, on of any such violation, such person sh. all be punishable by a fine not to
exceed $350.00 :for each day or portion thereof which such person, i.s found guilty. .. of
noncompliance with the provisions o:t7 this chapter.
ORD # 02-432 , PAGE 3
14-137 Appeal to hearing examiner.
Any taxpayer aggrieved bv thc amount of the :fee or tax determined by the direclor
to be due under the provisions of this chapter n)~_Lv appeal such determination to tile City hearing
examiner itl accordance with. and subiect to the procedures set :tbrth in. FWCC Section 22-431
through 22-460 pursuant to Process 1I Appeal Procedures. Pendina a hearine, a taxpayer may
withhold the fee or tax determined by the director. If the tax or fee is withheld, the taxpayer shall
pay such amount to the City with interest fi'om the date the amount was ~vithhel.d. The director
shall periodically set the applicable interest rate tbr withholding.
14-1.38 Business registration.
No person shall engage in or carry_ on any business or operate any place for
entrance to which an admission charge is made without first having obtained from the city a
business registration as provided in FWCC Chapter 9. Such registration shall be posted in a
conspicuous place in each ticket or box office where tickets of admission are sold.
14-139- 14-140 Reserved.
Section 2. Reservation. Chapter 14, Article IV, Division 2, Section 14-149 is
hereby amended as follows:
14-149- 14-150 Reserved.
Section 3. Admissions Tax. The Federal Way City Code is hereby amended
to add a new Division 3 to Article IV, Amusements, under Chapter 14, Taxation, which shall
read as follows:
Division 3. Admission Tax
14-151 Exercise of license revenue power.
The provisions of this chapter shall be deemed an exercise of the power of the
ORD # 02-432 , PAGE 4
City of Federal Way to tax for revenue.
14-152 Definitions.
In construing the provisions of this chapter, the following definitions shall be
applied:
(a) "Admission charge,"
includes but is not limited in meaning to:
in addition to its usual and ordinary meaning,
(1) A cover charge or a charge made for use of seats or tables, reserved or
otherwise, and similar accommodations.
(2) A charge made for food or refreshments in
entertainment, recreation or amusement is provided.
any place where any free
(3) A charge made for rental or use of equipment or facilities for purposes ol
recreation or amusement and, where the rental of the equipment or facilities is necessary to the
enjoyment of the privilege for which a general admission is charged, the combined charge shall
be considered as the admission charge.
(4) A service charge, mailing fee or other ancillary payment, per ticket and/o
per order, whether or not they are printed on the ticket or order.
(5)
for a specified period.
The price of box or seat for the use of such a box or seat permanently o
(6) A charge made for automobile parking where the amount of the charge i
determined according to the number of passengers in an automobile.
ORD # 02-632 , PAGE 5
(7) A sum of money referred to as "donation" which must be paid before
entrance is allowed.
(8) The amount of an increase in the price of refreshments, service or
merchandise in a place if no fixed admission charge or cover charge is imposed, but the price
charged for refreshments, service or merchandise is higher during the time entertainment or
dancing is conducted than at other times.
(b) "Cabaret" means a room where dance, musical, or other performing
entertainment is permitted in connection with a restaurant, lounge, tavern or similar business.
(c) "Nonprofit tax-exempt organization" means an organization, corporation,
or association organized and operated for the advancement, appreciation, public exhibition or
performance, preservation, study and/or teaching of the performing arts (music, drama includin~
puppetry, opera, film arts or dance), visual arts, historic vessels, history or science, which is
currently recognized by the United States of America as exempt from federal income taxation
pursuant to Section 501 (c)(1) or (3) of the Intemal Revenue Code of 1954, 26 U.S.C. Section
501, as now existing or hereafter amended, and a division, department or instrumentality of state
or local government devoted to the arts, history or science.
(d) "Place" includes, but is not restricted to, private clubs, theatres, danc{
halls, tavern, cabaret, amphitheaters, auditoriums, stadiums, athletic pavilions and fields, basebal
and athletic parks, public golf courses and/or driving ranges, skating rinks, circuses, side shows
swimming pools, amusement parks or similar places; and includes equipment and rides to whict
persons are admitted for purpose of recreation such as merry-go-rounds, rollercoasters, go-carts
ORD # 02-432 , PAGE 6
automatic baseball, observation towers and other rides whether such rides are restricted to tracks
or not.
(e) "Subscription" means, in addition to its usual and ordinary meaning,
annual membership dues or fees in an organization whose principal purpose is to present
theatrical or musical performance for its members.
14-153 Person subject to tax - Amount.
Effective January 1, 2005, there is levied and imposed a tax of two and one-half
(2.5) percent to be paid by every person, regardless of age, who pays an admission charge to any
place within the city limits. No tax shall be levied on any person who is admitted free of charge
and from whom no compensating payment is obtained. The tax on reduced admission charges
shall be charged on such reduced charge and not on the regular admission charge.
14-154 Exemption.
This following shall be exempt from any tax imposed under this Chapter:
(a) Admission charges for any activity of any elementary or secondary school.
(b) Admission charges which are $0.50 or less.
(c) Events or activities sponsored by a non-profit, tax-exempt organization.
14-155 Price to be posted.
(a) Whenever a charge is made for admission to any place, a seriall,
numbered or reserve seat ticket shall be furnished the person paying such charge unless writte:
approval has been obtained from the director to use a turnstile or other counting device whicl
will accurately count the number of paid admissions. The established price, service charge, Cit,.
tax and total price at which every such admission ticket or card is sold shall be separately
ORD # 02-432 _, PAGE 7
conspicuously and indelibly printed or written on the face or back of that part of the ticket which
is to be taken up by the management of the place to which admission is gained.
(b) It shall be unlawful for any person to sell an admission ticket or card on
which the name of the person conducting the event and the price is not so printed, stamped m
written, or to sell or offer to sell an admission ticket or card at a price in excess of the price
printed, stamped or written thereon. The admission tax due shall be based on the total sum of the
established price plus any service charge printed on the ticket.
(c) When a charge is made for admission, a sign must be posted in a
conspicuous place on the entrance or ticket office which breaks down the admission charge as
follows:
Established Price
Service Charge (if any)
City Tax
Total Price
14-156 Collection and payment of tax.
The tax required to be collected under this chapter shall be deemed to be held ir
trust by the person required to collect the same until remitted to the director as herein provided
Ag, y and all taxes and payments due and unpaid under this Chapter shall be a debt to the City o
Federal Way, and shall be a personal obligation of the taxpayer that is required to collect the tm
and shall be a lien upon all the personal properties of the same. Said lien shall have priority ove
all other liens and obligations except those to the state of Washington and the United State:
government. Said lien shall be enforced by the director as any other lien would be enforce{
against a defaulting debtor.
ORD# 02-432
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(a) Regular monthly returns:
The tax imposed under this Chapter shall be due and payable in monthl'
installments, and remittance thereof shall be made on or before the 15th day of the mont
following the end of the monthly period in which the tax is collected.
Any person, including any municipal or quasi-municipal corporation, wh¢
receives any payment for any admission charge on which a tax is levied under this chapter shall
file with the director a written return upon such form and setting forth such information as th,
director shall reasonably require, and shall sign and transmit the same to the director witl
remittance for the amount.
(b) One-time returns:
Whenever a person makes an admission charge subject to the tax levied in thi:
chapter, and the activity, entertainment, amusement or exhibit is of a temporary or transitor,
nature or there exists a reasonable question of financial responsibility, of which the director shal
be the judge, the director may require the report and remittance of the tax immediately upon thc
collection of same, at the conclusion of the performance or exhibition, or at the conclusion of thc
series of performances or exhibitions or at such other times as the director shall determine.
14-157 Deductions.
In computing the tax imposed by this chapter, the following amount may b
deducted from the measure of the tax: Amount derived from business which the City
prohibited form taxing under the Constitution or laws of this state or the Constitution or laws
the United States.
ORD # 02-432
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14-158- 14-169 Reserved.
Section 4. Initiative and Referendum.
This Ordinance shall be subject to initiative and referendum powers as set forth in
Chapter 2, Article III of the Federal Way City Code.
Section 5. Severability.
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
Ordinance, or the validity of its application to other persons or
of the remainder of this
circumstances.
Section 6.
Ratification.
Any act consistent with the authority and prior to the effective date of this
Ordinance is hereby ratified and affirmed.
Section 7. Effective Date.
This Ordinance shall take effect and be in force 30 days from and after its passage,
approval and publication, as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY.
WASHINGTON this /~day of November, 2002.
CITY OF FEDERAL WAY, WASHINGTON
BY ~ANN~~~
k~.TTEST:
ORD # 02-/432 ., PAGE 10
APPROVED AS TO FORM:
CITY ATTORNEY, Patricia A. Richardson
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.
10/30/o2
11/10/o2
11/23/02
12/23/o2
02-432
K:\ORDll'~admissiontaxord2amended
ORD# 02-432
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