HomeMy WebLinkAbout3949ORDINANCE NO. ,3 ---
AN ORDINANCE of the City Council of the
City of Kent, Washington, amending section
3.21.010 of the Kent City Code to affirm the City's
general prohibition of social card games as
commercial stimulants within the City of Kent, but
to allow one house-banked social card game
business currently operating in the Panther Lake
Annexation Area to remain in business after
annexation, pursuant to RCW 9.46.295; to adjust
the rate of taxation applicable to that house-
banked social card game business; to establish a
new threshold annual amount for taxation of not
for profit raffles; to revise the due date of tax
reporting forms and payments; and to clarify tax
enforcement provisions made available to the City
by state law.
RECITALS
A. Social card rooms as commercial stimulants are prohibited
outright in the City of Kent. There is, however, one lawfully operating
house-banked social card room business in the Panther Lake Annexation
Area that provides an important source of jobs to the area, as well as tax
revenue, and that does not otherwise pose a significant threat to the public
health, safety, and welfare of the City of Kent.
1
Annexation & Continued Operation
of Social Card Game Business-KCC 3.21.010
B. During its 2009 session, the Legislature amended RCW
9.46.295 so that the City can allow pre-existing house-banked social card
game businesses as commercial stimulants to remain in annexed areas,
while continuing to prohibit them elsewhere in the City.
C. The City is authorized to impose a tax under RCW 82.14.415,
and can demonstrate that the continuation of the affected house-banked
social card room business will reduce the credit against state sales and use
taxes as provided in RCW 82.14.415(7). Therefore, this ordinance satisfies
the grandfathering prerequisites of RCW 9.46.295. However, section
3.21.010 of the Kent City Code must be amended in order to allow this
house-banked social card room business to remain in operation after
annexation.
D. This ordinance also establishes the rate of taxation applicable
to house-banked social card game businesses authorized within the City of
Kent, and establishes a new annual threshold amount of receipts for
taxation of not for profit raffles consistent with RCW 9.46.110.
E. Lastly, this ordinance revises the due date of tax reporting
forms and payments, and clarifies tax enforcement provisions made
available to the City by state law. These final amendments apply to all
gambling establishments within the City of Kent.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. -Amendment -KCC 3.21.010. Section 3.21.010 of
the Kent City Code, entitled "Gambling activities and tax," is amended as
follows:
2
Annexation & Continued Operation
of Social Card Game Business-KCC 3.21.010
Sec. 3.21.010. Gambling activities and tax.
A. Tax imposed. In accordance with RCW 9.46.110, the following taxes
are there is levied a tax upon all persons, associations, and organizations
who have been duly licensed by the Washington State Gambling
Commission to conduct or operate certain gambling activities as follmvs:
1. Until January 1, 2000, taxation of bingo games and raffles at
a tax rate of ten (10) percent of the gross receipts received therefrom less
the amount awarded as cash or merchandise prizes. Effective January 1,
2000, taxation Foref bingo games and raffles.1. at-a tax rate of five (5)
percent of the gross receipts received therefrom less the amount awarded
as cash or merchandise prizes;
2. Taxation ofFor amusement games.1. at-a tax rate of two (2)
percent of the gross receipts from any such amusement games less the
amount awarded as prizes, which is an amount less than the actual
amount of costs of enforcement by the City of the provisions of Chapter
9.46 RCW;
3. Taxation ofFor punch boards and pull-tabs for bona fide
charitable or nonprofit organizations and for commercial stimulant
operators./. at-a tax rate of ten (10) percent based on the gross receipts
from the operation of the games less the amount awarded as cash or
merchandise prizes; .
4. Taxation ofFor social card games not prohibited by subsection
(D) of this section.1.-at a tax rate of tffi.eleven (ffiJJJ percent of the gross
revenue from such games.
B. Definitions, For the purposes of this chapter, the words and terms
used herein shall .. hav.e the sam.e meaning given to each pursuant to
Chapter 9.46 RCW, as same exist or may from time to time be amended;
and as set forth under the rules of the Washington State Gambling
Commission, Chapter 230 Washington Administrative CodeAG, as the same
3
Annexation. & Continued Operation
of Social Card Game Business-KCC 3.21.010
exists or may hereafter be amended, unless otherwise specifically provided
herein.
C. Exemption from tax. No tax shall be imposed under the authority of
this chapter on bingo, raffles, or amusement games when such activities or
any combination thereof are conducted by any bona fide charitable· or
nonprofit organization as defined in Chapter 9.46 RCW, which organization
has no paid operating or management personnel and has gross receipts
from bingo, raffles or amusement games, or any combination thereof, not
exceeding five thousand dollars ($5,000) per year less the amount
awarded as cash or merchandise prizes. For raffles conducted by bona fide
charitable or nonprofit organizations, no tax shall be imposed under this
chapter on the first ten thousand dollars ($10.000) per year of gross
receipts, less the amount awarded as cash or merchandise for prizes.
D. Social card games -Prohibited -Exceptions. Pursuant to RCW
9.46.295 and to the City's police power and legislative authority, the
operation or conduct of social card games by any person, association, or
organization as a commercial stimulant, as defined in Chapter 9.46 RCW,
is prohibited within the City of Kent; provided, that house-banked social
card game~ establishments licensed, by the Washington State
Gambling Commission, lawfully operating in the City of l<entin an area as
described in RCW 9.46.295 and annexed by the City of Kent, and which
are in compliance with the provisions of this chapter as of February 2,
±999, may continue to operate house-banked social card games as a
commercial stimulant under said license and renewals thereto at the
original licensed location or at another location within the same annexation
area; provided, however, that a relocated establishment must otherwise
comply with applicable land use and Gambling Commission regulations.
until March 1, 2004, after 'Nhich date no such establishment may la·Nfully
operate in the City of Kent; It isana further provided., that bona fide
4
Annexation & Continued Operation
of Social Card Game Business-KCC 3.21.010
charitable or nonprofit organizations, as defined in Chapter 9.46 RCW, may
operate or conduct social card games if said social card games have been
duly licensed by the Washington State Gambling Commission and if they
are otherwise operated or conducted in compliance with the provisions of
this chapter. A violation of this section shall not be subject to KCC
1.01.140.
SECTION 2. -Amendment -KCC 3.21.040. Section 3.21.040 of
the Kent City Code, entitled "Tax due," is amended as follows:
Sec. 3.21.040. Tax due.
A. Quarterlv Tax Reporting and Payment. Except as provided in KCC
3.21.040(B) for taxes due in excess of $50,000 annually, =Fthe tax imposed
by this chapter shall be due and payable in quarterly installments and
remittance therefor, together with the return forms, shall be made on or
before the final day of the month immediately after succeeding the
quarterly period in which the tax accrued. Such payments shall be due on
January 31, April 30, July 31, and October 31 of each respective year.
1. Whenever any person, association, or organization taxed
under this chapter quits business, sells out, or otherwise disposes of its
business, or terminates the business, any tax due shall become due and
payable immediately, and such taxpayer shall, within ten (10) days after
the last date the establishment is open for businessthereafter, filemaking a
return and pay the tax due.
2. Whenever it appears to the finance director that the collection
of taxes from any person, association, or organization may be in jeopardy,
the finance director, after not less than ten (10) days' notice to the
taxpayer, is authorized to require that the taxpayer remit taxes due and
returns at such shorter intervals than otherwise provided, as the finance
director deems appropriate under the circumstances.
5
Annexation & Continued Operation
of Social Card Game Business-Kee 3.21..01.0
B. Monthlv Tax Reporting and Pavment. The tax imposed by this
chapter shall be due and payable in monthly installments when the
gambling taxes due in the previous calendar year were in excess of fifty
thousand dollars ($50,000). In that event, the tax remittance, together
with the return forms, shall be made on or before the final day of the
month immediately after the month in which the tax accrued.
1. Whenever any person, association, or organization taxed
under this chapter quits business, sells out, or otherwise disposes of its
business, or terminates the business, any tax due shall become due and
payable immediately, and such taxpayer shall, within ten (10) days after
the last date the establishment is open for business, file a return and pay
the tax due.
2. Whenever it appears to the finance director that the collection
of taxes from any person, association, or organization may be in jeopardy,
the finance director, after not less than ten (10) days' notice to the
taxpayer, is authorized to require that the taxpayer remit taxes due and
returns at such shorter intervals than otherwise provided, as the finance
director deems appropriate under the circumstances.
SECTION 3. -Amendment -KCC 3.21.043. Section 3.21.043 of
the Kent City Code, entitled "Failure to make timely payment of tax or
fee," is amended as follows:
Sec. 3.21.043. Failure to make timely payment of tax or fee.
A. Penaltv. For each payment due, if such payment is not made by the
due date thereof, there shall be added a penalty as follows:
1. If not paid on or before the first day of the second month next
succeeding the quarterly period in which the tax accrued, ten (10) percent
of the total tax due with a minimum penalty of five dollars ($5).
6
Annexation & Continued Operation
of Social Card Game Business-Kee 3.21..01.0
2. If not paid on or before the first day of the third month next
succeeding the quarterly period in which the tax accrued, fifteen (15)
percent of the total tax due with a minimum penalty of ten dollars ($10).
3. If not paid on or before the first day of the fourth month next
succeeding the quarterly period in which the tax accrued, twenty (20)
percent of the total tax due with a minimum penalty of twenty dollars
($20).
4. Failure to make full payment of all taxes and penalties due by
the final day of the third month next succeeding the quarterly period in
which the tax accrued shall be deemed to be both a criminal and civil
violation of this chapter.
B. Service charge. In addition to the penalties imposed under KCC
3.21.043(A), a service charge of one (1) percent of the amount of the
unpaid balance or two dollars ($2.00), whichever amount is greater, will be
imposed one (1) month from the date payment was due, and at the end of
each succeeding monthly period, until all past due amounts are paid in full.
SECTION 4. -Amendment -KCC 3.21.055. Section 3.21.055 of
the Kent City Code, entitled "Taxes, penalties, and fees constitute debt to
municipality," is amended as follows:
Sec. 3.21.055. Taxes, penalties, service charges, and fees
constitute debt to municipality. Any tax due and unpaid under this
chapter and all penalties, service charges, or fees shall constitute a debt to
the city. The city may, pursuant to Ch. 19.16 RCW, use a collection
agency to collect outstanding debts, or it -a-A-€1-may seek be-collectionea by
court proceedings, which remedies the same as any other debt or like
amount ·.vhich shall be in addition to all other existing remedies. Further,
as provided for in RCW 9.46.110(4), as now enacted or hereafter
amended, taxes and associated penalties and charges imposed under this
7
Annexation & Continued Operation
of Social Card Game Business-KCC 3.21.010
chapter shall become a lien upon personal and real property used in the
gambling activity in the same manner as provided for under RCW
84.60.010 for property taxes. The lien shall attach on the date the tax
becomes due and shall relate back and have priority against real and
personal property to the same extent as ad valorem taxes.
SECTION 5. -Severabi!itv. If any one or more section,
subsections, or sentences of this ordinance are held to be unconstitutional
or invalid, such decision shall not affect the validity of the remaining
portion of this ordinance and the same shall remain in full force and effect.
SECTION 6. -Corrections bv Citv Clerk or Code Reviser. Upon
approval of the City Attorney, the City Clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; references to other local, state or federal laws,
codes, rules, or regulations; or ordinance numbering and
section/subsection numbering.
SECTION 7. -Effective Date. This ordinance shall take effect and
be in force thirty (30) days from and after its passage as provided by law.
ATTEST:
BRENDAJACOBER,~
8
Annexation & Continued Operation
of Social Card Game Business-Kee 3.21.01.0
APPROVED AS TO FORM:
PASSED: day of March, 2010.
APPROVED:
I hereby certify that this is a true copy of Ordinance No . .=;;_--'--''----'-
passed by the City Council of the City of Kent, Washington, and approved
by the Mayor of the City of Kent as hereon indicated.
P:\Clvil\Ordlnance\GambllngTax&SoclalCardGameslnAnnexedArea.docx
9
Annexation & Continued Operation
of Social Card Game Business-Kee 3.21.010