HomeMy WebLinkAboutReg 2009-04-06 Item 6B - Ordinance - Amend Gambling Tax for Charitable and Non-Profit OrganizationCAS NUMBER 09-032
A(,I:ND,\ I'1 Trrl.l Proposed amendments to Gambling Tax Ordinance regarding charitable and non-
profit organizations
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SUMMARY
RI 'IV IIANA D BY
Fund Source:
Comments:
MTG. DATE
03/09/09
MTG. DATE
03/09/09
04/06/09
Discussion 7 Motion
Altg Date 03/09/09 /Wig Date
Council Mcyor n Adm Svcs n DCD Finance 1 Fire 1 1 Legal n PAR Police 1 I Pir
The proposed amendments are intended to provide greater clarity regarding both the
definition of non profit organizations and the eligibility of those agencies applying for
grants.
COW Mtg.
Utilities Cmte
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COUNCIL AGENDA SYNOPSIS
Initials
[Vleetitt� Date Prepared by 1 Mayor's review Council review
03/09/09 EB I .A/..Z
04/06/09 EB I A
1
ITEM INFORMATION
ORIGINAL AG1ND,\ DATL: MARCH 9, 2009
Resolution Ordinance 1 1 Bid Award U Public. Hearing n Other
11Itg Date Alts Date 04/06/09 Altg Date
n CA &P Cmte
U Arts Comm.
F &S Cmte
Parks Comm.
DATE: 02/03/09 03/03/09
RECOMMENDATIONS:
SPONSOR /ADMIN.
COMMITTEE Unanimous Approval; Forward to Committee of the Whole
COST IMPACT FUND SOURCE
RECORD OF COUNCIL ACTION
Forward to Regular Meeting
ATTACHMENTS
Informational Memorandum dated 2/18/09
Email correspondence from Assistant City Attorney, dated 1/21/09
Ordinance in draft form
2007 -2008 Tukwila Grants
Minutes from the Finance and Safety Committee meeting of 2/3/09 3/3/09
Ordinance in final form
ITEM No.
('1
ulltg Date eVItg Date
Transportation Cmte
U Planning Comm.
AMOUNT BUDGETED APPROPRIATION REQUIRED
3.08.030 Tax Rates
W:\ Word Processing Ordinances 2008 \Gambling Tax Rates.doc
3/31/2009
City of Tukwila
Washington
Ordinance No.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON; AMENDING ORDINANCE NO. 2150 §1 (PART) AS
CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.08.030,
"GAMBLING ACTIVITIES TAX RATES," RELATED TO THE WAIVER
OF GAMBLING TAX FOR BONA FIDE CHARITABLE AND NON PROFIT
ORGANIZATIONS; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City desires to encourage charitable and non profit organizations
conducting certain gambling activities in Tukwila to donate to charitable, non profit
organizations serving the Tukwila community;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Ordinance Amended. Ordinance No. 2150 §1 (part) as codified at
Tukwila Municipal Code 3.08.030, "Gambling Activities Tax Rates," is hereby
amended to read as follows:
A. Pursuant to RCW 9.46.110 and RCW 9.46.120, as amended by the Laws of
Washington, effective July 27, 1997, there is levied upon all persons, associations and
organizations who have been duly licensed by the Washington State Gambling
Commission, as authorized by law, the following tax:
1. To conduct or operate any bingo games and raffles, a tax rate of 5% of the
gross revenue received therefrom, less the actual amount paid by such person,
association or organization for or as prizes;
2. To conduct any amusement game, a tax rate of 2% of the gross revenue
received therefrom, less the actual amount paid by such person, association or
organization for or as prizes;
3. For the conduct or operation of any punchboards or pulltabs, a tax rate of
5% of the gross receipts from such activities for commercial stimulant operators
(taverns, restaurants, etc.); and a tax rate of 10% on the gross receipts less the amount
paid out as prizes for charitable or nonprofit organizations;
4. For the conduct or operation of any premises or facility used to play social
card games, a tax rate of 20% of the gross receipts received therefrom;
5. Any public card room operated as a commercial stimulant, a tax rate of
10% of the gross receipts received therefrom.
B. Non- Profit Organizations.
1. No tax shall be imposed under the authority of TMC Chapter 3.08 on bingo
or raffles when such activities or any combination thereof are conducted by any bona
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fide charitable or nonprofit organization as defined in RCW 9.46.0209, which
organization has no paid or management personnel, and has gross income from bingo
and raffles, or any combination thereof, not exceeding $5,000 per year, less the amount
paid for or as prizes.
2. The Finance Director may waive the tax due each quarter from a bona fide
charitable or nonprofit organization as defined in RCW 9.46.0209. This waiver may
occur only if the charitable or nonprofit organization demonstrates by clear and
convincing documentation that an amount equal to at least 70% of the tax due the City,
as computed pursuant to TMC 3.08.030, will be donated to charitable nonprofit
organizations serving the City whose purpose is to provide programs or facilities for
meeting the basic health, education, welfare, or other needs of the residents of the City.
Failure to donate at least 70% of the tax due the City will result in revocation of the
waiver and the disqualification of the bona fide charitable or nonprofit organization to
receive a waiver for future tax payments.
Section 2. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 3. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force five days
after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of 2009.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
W:\ Word Processing \Ordinances 2008 \Gambling Tax Ra tes.doc
3/31/2009
Joan Hernandez, Mayor Pro Tempore
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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