HomeMy WebLinkAboutFS 2007-01-16 Item 2C - Ordinance - Gambling Tax for Bona Fide Charitable and Nonprofit Organizations
City of Tukwila
6200 Southcenter Boulevard · Tukwila, Washington 98188
Steven M. Mullet, Mayor
To:~
City Council
Q~"""
Mayor Mullet
From:
Date:
December 7,2006
Su?ject:
Seattle Jaycees Request for \Vaiver of City Gambling Tax
As .you are aware, in the waiver request presented by the Seattle Jaycees
they have cited a dire financial condition that presents the distinct likelihood
that they will lose their gambling license. Without state licensing, the
organization will be faced with closing its bingo operation in Tukwila. To
put it in perspective, the Jaycees currently employ 18 staff and generated
$75,000 in gambling tax revenue in 2005.
A payment waiver of municipal gambling taxes by charitable non-profit
organizations has precedent. The City of Lakewood exempts these agencies
and I understand that the City of Tacoma is currently considering the matter.
The granting of a waiver will necessitate an amendment of the Tukwila
Municipal Code (TMC).
I will present this infoffi1ation during my report at the December 11, 2006
Special Council Meeting. I would like to obtain your feedback to determine
if there is support in having Administration bring an amendment to the TMC
for Council consideration in January 2007.
Q.L~
/10 ~
Phone: 206-433-1800 · City Hall Fax: 206-433-1833 · wwvai.ruhllila.wa.us
CITY OF TUKWILA
WASHINGTON
ORDINANCE NO. 0
AN ORDINANCE OF THE CITY OF TUKWILA,
W ASIDNGTON, Al\1ENDING TUKWILA MUNICIPAL
CODE SECTION 3.08.030 (TAX RATES) RELATED TO
THE WAIVER OF GAMBLING TAX FOR BONA FIDE
CHARITABLE AND NONPROFIT ORGANIZA TIONS;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING
AN EFFECTIVE DATE
WHEREAS; the City desires to encourage charitable and nonprofit organizations
conducting certain gambling activities in Tukwila to donate to charitable, nonprofit organization
based/located within Tukwila and serving the Tukv..rila community;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
\VASHlNGTON, DO ORDAIN AS FOLLO\VS:
Section 1 TMr 1 OR 010) Amended. Tukwila Municipal Code Section 3.08.030 entitled
"Tax Rates" is hereby amended to read as follows:
3.08.030 Tax Rates
In pursuance of 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 \Vashington
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 of20% ofthe gross receipts received therefrom;
5. Any public cardroom operated as a commercial stimulant, a tax rate of
10% of the gross receipts received therefrom.
The Fimmce Director mHY w::live the tHX dne eHch (}lmrter from ::l honH ficle
ch::lritHhle or nonprofit ore;HnizHtion H~ defined in thi~ rhHpter Thi~ wHiver m3Y
OCCllT only if the chHritHhle or nonprofit ore;HnizHtion demon~trHte~ hy cleHr Hnd
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convincine: oocllment~tion th~t ~n ~mollnt eCJll~ 1 to ~t le~<;t 70% of the t~x one the
~ity> ~<; compllteo pm<;ll~nt to thi<; ~h~pter, u.rill he oon~teo to ch~rit~hle nonprofit
ore~nizMion<; 10c~teo in the ~ity who<;e pnrpo<;e i<; to provioe proe:r~m<; or
f~eilitie<; for meetine the h~<;ic he::l1th eonc~tion, welf~re or other neeo<; of the
re<;ioent<; of the (,ity F~ilnre to oon~te ~t le~<;t 70% of the t~x one the ~ity u.rill
re<;nlt in revoc~tion of the w~iver ~nd the di<;qn~lific~tion of the hon~ fide
ch~rit~hle or nonprofit ore:::Jniz::Jtion to receive ::J w::Jiver for futme ti'lX payments
Provided, however, that no tax shall be imposed under the authority of this
Chapter on bingo or raffles when such activities or any combination thereof are
conducted by any bona fide charitable or nonprofit organization as defmed in this
Chapter, which organization has no paid operating 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 as prizes.
Section? Sevemhility. Should any section, paragraph, sentence, clause or phrase of this
Ordinance, or its application to any person or circumstance, be declared unconstitutional or
otherwise invalid for any reason, or should any portion of this Ordinance be pre-empted by state or
federal law or regulation, such decision or pre-emption shall not affect the validity of the remaining
portions of this Ordinance or its application to other persons or circumstances.
Section 1 Effective n~te-. This Ordinance shall be published in the official newspaper of
the City, shall take effect and be in full force five (5) days after the date of publication, and shall be
retroactively applied to taxes payable for the fourth quarter of2006.
ADOPTED BY THE CITY COUNCIL AT A REGULAR MEETING THEREOF ON
THE DAY OF ,2007.
CITY OF TUKWILA
Mayor Steven M. Mullet
ATTEST/AUTHENTICATED:
Jane Cantu, City Clerk
Approved as to form:
Shelley M. Kerslake, City Attorney
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TITLE 3 - REVENUE AND FINANCE
.-:>
3.08.030 Tax Rates
In pursuance of 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 puIItabs, 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 cardroom operated as a
commercial stimulant, a tax rate of 10% of the gross
receipts received therefrom.
Provided, however, that no tax shall be imposed
under the authority of this chapter on bingo or raffles
when such activities or any combination thereof are
conducted by any bona fide charitable or nonprofit
organization as defined in this chapter, which
organization has no paid operating 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 as prizes.
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3.08.040 Fundraising Events Allowed. Limitations
Any and all fundraising events conducted or oper-
ated by bona fide charitable or nonprofit organizations
as authorized by the Revised Code of Washington,
Chapter 9.46 as it now exists or is hereafter amended,
are allowed subject to the following limitations:
1. No organization shall be allowed to
conduct more than two such events in the City in any
one calendar year; and
2. No more than four such events may take
place at the same location in the City in anyone
calendar year.
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3.08.050 Administration And Collection Of Tax
The administration and collection of tax imposed
by this chapter shall be by the Finance Director and in
strict pursuance of the rules and regulations as may be
Printed February 2005
adopted by the Washington State Gambling Commis-
sion from time to time. The Finance Director shall
adopt and publish such rules and regulations as may be
reasonably necessary to enable the collection of the tax
imposed hereby.
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3.08.060 Declarations And Statements Required To
Be Filed
A. For the purpose of properly identifying the
person, association and organization subject to any tax
imposed by this chapter, such person, association or
organization intending to conduct or operate any
gambling activity authorized by the above specified
laws, or as the same may be amended hereafter, shall,
prior to commencement of any such activity, file with
the Finance Director a sworn declaration of intent to
conduct or operate such activity, together with a true
and correct copy of the license issued by the Washing-
ton State Gambling Commission or any renewal or
extension of such license or temporary license.
B. Thereafter, for any period covered by such
State license or any renewal or extension thereof, any
person, association or organization shall, on or before
the last day of the month following the end of the
quarterly period in which the tax accrued, file with the
Finance Director a sworn statement, under penalty of
perjury, on a form to be provided and prescribed by the
Finance Director for the purpose of ascertaining the tax
due for the preceding quarterly period.
C. In addition, any such person, association or
organization shall file with the Finance Director copies
of any daily, weekly, monthly or other periodic tax
statements, financial reports, daily control sheets, daily
time sheets, records of attendance, or any other
information required to be filed by it to the State of
Washington Gambling Commission.
D. The Chief of the Police Department may
establish such further and additional reporting
requirements of any person, association or organization
authorized to conduct gambling activities in the City
which are reasonably intended to provide information
to the City regarding the conduct of said activities.
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3.08.070 Filing Of Application With Finance Director
Each person, association, or organization licensed
by the Washington State Gambling Commission shall
likewise submit to the Finance Director a true and
correct copy of any application made to such
commission for a license, together with any and all
amendments thereof. Such copy shall be submitted at
or prior to the filing of the first tax return due under
this chapter.
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