HomeMy WebLinkAbout3964ORDINANCE NO. 3 CJ IP t
AN ORDINANCE of the City Council of the
City of Kent, Washington, amending section
3.26.010 of the Kent City Code, entitled
"Adm1ss1ons Tax Imposed," to limit the exemption
for governmental entities to only those not
engaging in an activity operated in the manner of
a separate business enterprise.
RECITALS
A. In 2004 the Kent City Council adopted Ordinance No. 3678,
which enacted the City's current code provisions assessing an admissions
tax against every person who pays an adm1ss1on charge to any place
within the Kent city limits. This ordinance is codified in Chapter 3.26 of
the Kent City Code, and has not been amended since its original adoption.
B. The City's existing code provisions exempt all governmental
entities from the assessment of admissions tax, even when governmental
activities engage in a business enterprise.
C. The City Council finds that it is appropriate to amend the
City's admissions tax provision to remove the exemption provided to those
governmental entities who are engaging in a business enterprise, including
without limitation, a golf course or event center.
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NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. -Amendment to KCC 3.26.010, Governmental Entity
Exemption to Admissions Tax Levy. Section 3.26.010 of the Kent City
Code, entitled "Admissions tax imposed," is amended as follows:
Sec. 3.26.010. Admissions tax imposed.
A. Tax imposed. In accordance with RCW 35.21.280, there is levied
and shall be collected a tax from every person, without regard to age, who
pays an admission charge to any place withm the city l1m1ts. The tax shall
be measured by applying the rate set forth m this chapter to the admission
charge. The tax shall be held in trust by the business, association,
organization, or other entity charging and collecting admission taxes until
the taxes are remitted to the finance director under KCC 3.26.030. No tax
shall be levied on any person who is admitted free of charge and the tax
on reduced admission charges shall be calculated on the reduced charge
and not on the regular admission charge.
B. Definitions. The following definitions shall apply throughout this
chapter:
1. Admission charge, in addition to its usual and ordinary
meaning, means a monetary charge for an event open to the public
including, but not limited to, the following:
a. A charge made for season tickets or subscriptions;
b. A cover charge or a charge made for use of seats and
tables, reserved or otherwise, and similar accommodations;
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c. A charge made for food and refreshments in any place
where any free entertainment, recreation, or amusement is provided;
d. If a general admission fee is charged for entry onto the
premises where a rental occurs and 1f the rental of equipment or fac1l1t1es
is necessary to the enJoyment of a privilege for which a general admission
is charged, the combined charges shall be considered as the adm1ss1on
charge; provided, however, that a general admission fee must be charged
for entry onto the premises where a rental occurs before the rental can be
taxed under this chapter;
e. If a general admission fee is charged for entry onto the
premises where an act1v1ty occurs (such as, and without limitation, a
bowling alley or ice skating rink) and if the activity charge is necessary to
the enjoyment of a privilege for which a general admission is charged, the
combined charges shall be considered as the admission charge; provided,
however, that a general admission fee must be charged for entry onto the
premises where an activity occurs before the activity charge can be taxed
under this chapter;
f. Automobile parking charges if the amount of the charge
is determined according to the number of passengers in the automobile;
g. Any other charge for entrance and observation.
2. Collecting entity means any person, business, association,
organization, or other entity entrusted with the collection and remittance
of admission taxes under this section.
3. Governmental entity means any federal, state, or local
government, or branch thereof, and also includes any public facility or any
public facility, service, or utility district that is exempt from federal income
taxation pursuant to Section 501(c)(1) or (3) of the Internal Revenue
Code, as it may be amended from time to time.
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4. 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, visual arts, history, science, or a public
charity prov1d1ng human services, or a public education entity, which 1s
currently exempt from federal income taxation pursuant to Section
SOl(c)(l) or (3) of the Internal Revenue Code, as 1t may be amended from
time to time.
5. Secondary or elementary school means any public or private
primary school, middle school, Junior high school, high school, or any
accredited college, Junior college, university, or the recognized student
body association thereof.
C. Exemptions from tax. No tax shall be imposed under the authority
of this chapter on the following:
1. Admission charges for any activity of any elementary or
secondary school, any governmental entity, or any nonprofit tax-exempt
organization. However. governmental activities operated in the manner of
a separate business enterprise shall not be exempt from this tax. By way
of example and not llm1tat1on. a business enterprise subject to the
adm1ss1ons tax levy could include an event center or golf course. if
operated as a business activity in a separate fund.
2. Events sponsored by nonprofit tax-exempt organizations if the
nonprofit tax-exempt organization publicly sponsors and promotes the
event and the nonprofit tax-exempt organization receives the use and
benefit of the adm1ss1on charges collected.
D. General application. By way of illustration only, this tax applies to
any nonexempt admission charge, as defined in this section, collected for
admission to any theater, cinema, dance hall, cabaret, adult entertainment
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cabaret, circus, side show, outdoor amusement park, dinner theatre, music
concerts, radio shows, and television shows.
SECTION 2. -Severab1/Jty. If any one or more sections,
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 3. -Corrections by City Clerk or Code Reviser. U pan
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 4. -Effective Date. This ordinance shall take effect and
be in force thirty (30) days from and after 1
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APPROVED AS TO FORM:
PASSED: 16 day of June, 2010.
APPROVED: 15 day of June, 2010.
PUBLISHED: If day of June, 2010.
I hereby certify that this is a true copy of Ordinance No. 39 /?cf'
passed by the City Council of the City of Kent, Washington, and approved
by the Mayor of the City of Kent as hereon indicated.
~~(SEAL) BliENnAJACR,CITYCLERK
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