Chapter 6.44
GAMBLING

Sections:

6.44.010    Short title.

6.44.020    Definitions.

6.44.030    Tax – Levy – Rates.

6.44.040    Tax – Exemptions.

6.44.050    Tax – Quarterly payments – Exceptions generally.

6.44.060    Tax – Payment – Action on operation cessation.

6.44.070    Tax – Payment – Occasional operations.

6.44.080    Tax – Shorter payment intervals when.

6.44.090    Tax – Administration and collection.

6.44.100    Tax – Payment method.

6.44.110    Tax – Delinquent payment penalties.

6.44.120    Notice of intent to engage in gambling activity.

6.44.130    Records required.

6.44.140    Overpayment or underpayment of tax.

6.44.150    Failure to make tax return.

6.44.160    Taxes, penalties and fees constitute debt.

6.44.170    Violation – Penalty.

6.44.010 Short title.

The ordinance codified in this chapter shall be known as the “Kitsap County gambling ordinance”.

(Ord. 59 (1975) § 1, 1975)

6.44.020 Definitions.

The words and terms used in this chapter shall have the same meaning as each has under RCW Chapter 9.46, as amended, and under WAC 230, as amended, unless otherwise specifically provided or the context in which they are used clearly indicates that some other meaning is intended.

(Ord. 59 (1975) § 2, 1975)

6.44.030 Tax – Levy – Rates.

There is levied upon all persons, associations and organizations conducting or operating within Kitsap County any of the activities listed below a tax in the following amounts to be paid to Kitsap County:

(a)    Bingo: In the amount of gross receipts therefrom, less the amount of money paid in cash or from merchandise actually awarded as prizes during the taxable period, multiplied by the rate of five percent;

(b)    Raffles: In the amount of the gross receipts therefrom, less the amount of money paid in cash or from merchandise actually awarded as prizes during the taxable period, multiplied by the rate of five percent;

(c)    Amusement Games: Shall only be in an amount sufficient to pay the actual costs of enforcement of gambling by the county, and in no event shall such taxation exceed two percent of the gross receipts from the amusement game, less the amount awarded as prizes;

(d)    Punch Boards or Pull-Tabs: In the amount of three percent of the gross receipts derived directly from the operation of the punch boards or pull-tabs;

(e)    Social Card Games (Player Funded): In the amount of ten percent of the gross receipts received as fees charged persons for the privilege of playing in card games;

(f)    Social Card Games (House Banked): In the amount of two percent of the gross receipts received by the house from such social card games.

(Ord. 59-D (2000) § 1, 1999: Ord. 59-C (1999) § 1, 1999: Ord. 59-A (1978) §§ 1, 2, 1978: Ord. 59-B (1975) § 1, 1975: Ord. 59-A (1975) § 1, 1975: Ord. 59 (1975) § 3, 1975)

6.44.040 Tax – Exemptions.

(a)    No tax shall be imposed or collected on bingo or amusement games when such activities or any combination thereof are conducted by a bona fide charitable or nonprofit organization, which organization has no paid operating or management personnel and has gross receipts from bingo or amusement games, or any combination thereof, not exceeding five thousand dollars per calendar year less the amount paid for as prizes.

(b)    No tax shall be imposed on the first ten thousand dollars of gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by any bona fide charitable or nonprofit organization.

(c)    Taxation of punch boards and pull-tabs for bona fide nonprofit organizations is based on the gross receipts from the operation of the games, less the amount awarded as cash or merchandise prizes, multiplied by the rate of ten percent.

(Ord. 59-D (2000) § 2, 1999: Ord. 59-B (1978) § 1, 1978: Ord. 59-A (1978) § 3, 1978: Ord. 59 (1975) § 3.5, 1975)

6.44.050 Tax – Quarterly payments – Exceptions generally.

Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter year, shall be due and payable in quarterly installments, and remittance therefor, together with return forms, shall be made to Kitsap County on or before the last day of the months next succeeding the quarterly period in which the tax accrued (i.e., on January 31st, April 30th, July 31st and October 31st of each year); provided, the exceptions to the above payment schedule set out in Sections 6.44.060 through 6.44.080 shall be allowed, or required.

(Ord. 59 (1975) § 4 (part), 1975)

6.44.060 Tax – Payment – Action on operation cessation.

Except as provided in Section 6.44.070, 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, make a return and pay the tax due.

(Ord. 59 (1975) § 4(a), 1975)

6.44.070 Tax – Payment – Occasional operations.

It is recognized that some bona fide charitable or bona fide nonprofit organization taxpayers will be conducting or operating taxable activities only upon an occasional and random basis. Except as provided in Section 6.44.080, when such a taxpayer conducts only one taxable activity during any calendar quarter, the duration of each such activity does not exceed fifteen consecutive calendar days, and the gross receipts therefrom do not exceed one thousand five hundred dollars, that taxpayer need not remit the tax due with a return therefor until on or before January 21st of the year following that year in which the activity took place. Such returns shall be made upon a special form to be provided by the Kitsap County auditor.

(Ord. 59 (1975) § 4(b), 1975)

6.44.080 Tax – Shorter payment intervals when.

Whenever it appears to the Kitsap County auditor that the collection of taxes from any person, association or organization may be in jeopardy, the Kitsap County auditor, after not less than five days’ notice to the taxpayer, is authorized to require that taxpayer to remit taxes and return at such shorter intervals than quarterly or annually, as the Kitsap County auditor deems appropriate under the circumstances.

(Ord. 59 (1975) § 4(c), 1975)

6.44.090 Tax – Administration and collection.

Administration and collection of the various taxes imposed by this chapter shall be the responsibility of the Kitsap County auditor. Remittance of the amount due shall be accompanied by a completed return as prescribed and provided by the Kitsap County auditor. The taxpayer shall be required to swear and affirm that the information given in the return is true, accurate and complete.

The Kitsap County auditor is authorized, but not required, to mail to taxpayers forms for returns. Failure of the taxpayer to receive such a form shall not excuse a taxpayer from making the return and timely paying all taxes due. The Kitsap County auditor shall make forms available to the public in reasonable numbers in the Kitsap County auditor’s office during regular business hours.

In addition to the return form, a copy of the taxpayer’s quarterly report to the Washington State Gambling Commission, as required by WAC Chapter 230-08, for the period in which the tax accrued, shall accompany the remittance of the tax amount due.

(Ord. 59 (1975) § 5, 1975)

6.44.100 Tax – Payment method.

Taxes payable under this chapter shall be remitted to the Kitsap County auditor on or before the time required by bank draft, certified check, cashier’s check, personal check, money order, or in cash. If payment is made by draft or check, the tax shall not be deemed paid until the draft or check is honored in the usual course of business, nor shall the acceptance of any sum by the Kitsap County auditor be an acquittance or discharge of the tax unless the amount paid is the full amount due. The return, and copy of the quarterly report to the Washington State Gambling Commission, shall be filed in the office of the Kitsap County auditor after notation by that office upon the return of the amount actually received from the taxpayer.

(Ord. 59 (1975) § 6, 1975)

6.44.110 Tax – Delinquent payment penalties.

If full payment of any tax or fee due under this chapter is not received by the Kitsap County auditor on or before the date due, there shall be added to the amount due a penalty fee as follows:

(1)    One through ten days late, five percent of tax due;

(2)    Eleven through twenty days late, seven and one-half percent of tax due;

(3)    Twenty-one through thirty-one days late, ten percent of tax due;

(4)    Thirty-two through sixty days late, fifteen percent of tax due.

In no event shall the penalty amount be less than ten dollars. In addition to this penalty the Kitsap County auditor shall charge the taxpayer interest of eight percent per year on all taxes and fees delinquent for more than thirty days.

Failure to make payment in full of all tax amounts and penalties within sixty days following the day the tax became due shall be both a civil and criminal violation of this chapter.

(Ord. 59 (1975) § 7, 1975)

6.44.120 Notice of intent to engage in gambling activity.

In order that Kitsap County may identify those persons who are subject to taxation under this chapter, each person, association or organization shall file with the Kitsap County auditor a sworn declaration of intent to conduct an activity taxable under this chapter upon the form prescribed by the Kitsap County auditor, together with a copy of the license issued therefor by the Washington State Gambling Commission. The finding shall be made not later than ten days prior to conducting or operating the taxable activity. No fee shall be charged for such finding. Failure to timely file shall not excuse any person, association or organization from any tax liability.

(Ord. 59 (1975) § 8, 1975)

6.44.130 Records required.

(a)    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 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.

(b)    All books, records and other items required to be kept and maintained under this section shall be subject to, and immediately made available for, inspection and audit at any time, with or without notice, at the place where such records are kept upon demand by any Kitsap County law enforcement officer or agency for the purpose of enforcing the provisions of this chapter.

(c)    Where a taxpayer does not keep all of the books, records or items required to be kept or maintained under this section in this jurisdiction so that any Kitsap County law enforcement officer or agency may examine them conveniently, the taxpayer shall either:

(1)    Produce all of the required books, records or items for such inspection within Kitsap County within fifteen days following a request of any Kitsap County law enforcement officer or agency that he do so; or

(2)    Bear the actual cost of inspection by any Kitsap County law enforcement officer or agency at the location at which such books, records or items are located. A taxpayer choosing to bear these costs shall pay in advance to the Kitsap County law enforcement officer or agency the estimated cost thereof including, but not limited to, round trip fare by the most rapid means, lodging, meals and incidental expenses. The actual amount due, or to be refunded, for expenses shall be determined following the examination of the records.

(d)    The taxpayer who fails, neglects or refuses to produce such books and records either within or without this jurisdiction, in addition to being subject to other civil and criminal penalties provided by this chapter, shall be subject to a jeopardy fee. The jeopardy fee shall be the amount of the tax or fee owed by the taxpayer.

(Ord. 59 (1975) § 9, 1975)

6.44.140 Overpayment or underpayment of tax.

If, upon application by a taxpayer for a refund or for an audit of its records, or upon any examination of the returns or records of any taxpayer, it is determined by the Kitsap County auditor that within three years immediately preceding the receipt by the Kitsap County auditor of the application by the taxpayer for a refund, or an audit, or, in the absence of such an application, within the three years immediately preceding the commencement by the Kitsap County auditor of such examination:

(1)    A tax or other fee has been paid in excess of that properly due, the total excess paid over all the amounts due to the county within such period of three years shall be credited to the taxpayer’s account or shall be refunded to the taxpayer at the taxpayer’s option. No refund or credit shall be allowed for any taxes or fees paid more than three years before the date of such application or examination;

(2)    A tax or other fee has been paid which is less than that properly due, or no tax or other fee has been paid, the Kitsap County auditor shall mail a statement to the taxpayer showing the balance due, including the tax amount or penalty assessments and fees. It shall be a separate, additional violation of this chapter, both civil and criminal, if the taxpayer fails to make payment in full within ten calendar days of such mailing.

(Ord. 59 (1975) § 10, 1975)

6.44.150 Failure to make tax return.

If any taxpayer fails, neglects, or refuses to make and file his return as and when required under this chapter, the Kitsap County auditor is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed under the provisions of this chapter, and by mail to notify such taxpayer of the amount so determined which amount shall thereon become the tax and penalty and/or interest and shall become immediately due and payable.

(Ord. 59 (1975) § 11, 1975)

6.44.160 Taxes, penalties and fees constitute debt.

Any tax due and unpaid under this chapter and all penalties or fees shall constitute a debt to Kitsap County and may be collected by court proceedings the same as any other debt.

(Ord. 59 (1975) § 12, 1975)

6.44.170 Violation – Penalty.

Any person, association or organization violating or failing to comply with any of the provisions of this chapter shall, upon conviction thereof, be punished by a fine not to exceed three hundred dollars or by imprisonment in the Kitsap County jail for a period not to exceed ninety days, or by both such fine and imprisonment.

Any person engaging in any gambling activities subject to a tax under this chapter without having complied with the provisions of this chapter is guilty of a violation of this chapter for each day during which the gambling activity is carried on.

(Ord. 59 (1975) § 13, 1975)