HomeMy WebLinkAbout1999-043 Gambling Tax rate on bingo receipts ORDINANCE No. 99- 4 3
AN ORDINANCE relating to the gambling tax rate on bingo receipts; changing the
gambling tax rate on bingo receipts from ten percent to five
percent, commencing January 1, 2000; and amending section
5.49.020 of the City of Yakima Municipal Code.
WHEREAS, pursuant to 1999 Wash. Laws, Chapter 221, § 1, the Washington State
Legislature reduced the maximum gambling tax rate that municipalities may impose
upon bingo receipts from ten percent (10 %) to five percent (5 %); and
WHEREAS, the effective date of said state law is January 1, 2000; and
WHEREAS, in order to comply with said state law, it is necessary to amend YMC
5.49.020(A)(1) and reduce the gambling tax rate on bingo receipts from ten percent
(10 %) to five percent (5 %); and
WHEREAS, the City Council determines that it is in the best interests of the citizens of
the City of Yakima that the ordinance related to the gambling tax rate on bingo receipts
be amended as set forth in this Ordinance; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
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Section 1. YMC 5.49.020 is amended to read as follows:
Taxes imposed — Amounts — Exemptions.
I
A. Tax Imposed. There is levied a tax upon all persons,
associations and organizations who conduct or operate gambling
activities within the city of Yakima and who have been duly licensed by
the Washington State Gambling Commission to conduct or operate such
gambling activities. Such tax shall be paid on the following gambling
activities in the following respective amounts:
1. Effective through December 31, 1999, Aany bingo or raffle,
at the rate of ten percent and . any amusement game at the rate of two
percent of gross receipts less the amount awarded as cash or merchandise
prizes in the conduct of such activity;
2. Commencing January 1, 2000, any bingo or raffle, at the rate
of five percent of the gross receipts less the amount awarded as cash or
merchandise prizes in the cori'duct of such activity;
3. Any amusement game at the rate of two percent of the gross
receipts less the amount awarded as cash or merchandise prizes in the
conduct of such activity;
24. Any punchboard or pulltab, a tax computed at the rate of
ten percent of gross receipts less the amount awarded as cash or
merchandise prizes in the conduct of such activity;
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(Ik)ord /gambling tax amendment oct. 99-pm
35. Any social card: game, a tax computed at the rate of ten
percent of the gross receipts from the conduct of such activity;
46. Any public cardroom operated as a commercial stimulant, a
tax computed at the rate of ten percent of the gross receipts from the
conduct of such activity.
B. Exemptions.
(1) A bona fide charitable or nonprofit organization as defined
by RCW 9.46.0209 conducting or sponsoring bingo games, raffles or
amusement games when such organization has no paid operating or
management personnel and has gross income from bingo, raffles or
amusement games or any combination thereof not exceeding five
thousand dollars per year, less the amount paid for :.prizes, shall be
entitled to exemption from the provisions of this . chapter upon compliance
with the requirements of Section 5.49.030 of this code.
(2) Activities carried out by public or private schools or by
organizations sponsored by or related to public or private schools,
including parent organizations and student body organizations, shall be
exempt from the provisions of this chapter upon compliance with Section
5.49.030 of this code when the proceeds of such activities are applied for
the benefit of any such school, or school sponsored or school- related
organization.
(3) Any deviation from exemption restrictions enumerated
herein shall subject such organization to the requirements of this chapter
to the same extent as if such exemption had not been granted, including
required payment within ten days after written demand of the city
department of finance of any taxes formerly granted exemption
hereunder.
Section 2. Effective Date. This ordinance shall be in full force and effect 30 days
after its passage, approval, and publication as provided by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this day of
/AN ,1999.
John Puccinelli, Mayor
ATTEST:
City Clerk
Publication Date: I( 5 q�
Effective Date: 1
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(Ik)ord /gambling tax amendment Oct. 99 -pm
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of 11/2/99
ITEM TITLE: An Ordinance amending the Yakima Municipal Code Relating to
Gambling Taxes
SUBMITTED BY: Department of Finance and Budget
Legal Department
CONTACT PERSON/TELEPHONE: Cindy Epperson, Accounting Manager /575 -607CCE-
Paul McMurray, Asst. City Attorney /575 -6030
SUMMARY EXPLANATION:
This ordinance is necessary to amend existing City code to comply with new State
legislation regarding gambling tax limits for Bingo games. This ordinance will meet the
requirements of the new state law, which reduces the tax rate in half from 10% to 5 %.
The City estimates to receive approximately $50,000 in gambling tax on Bingo in 1999.
Accordingly, the 2000 gambling tax revenue budget has already been reduced by $25,000
(from $370,000 to $345,000) to accommodate this change in the law. The new tax rate will
take effect January 1, 2000.
Resolution X Ordinance Contract Other (Specify)
Funding Source
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Staff recommends passage of this ordinance to comply with
current state law.
BOARD /COMMISSION RECOMMENDATION:
COUNCIL ACTION:
CJE /Finance
Agenda - Gambling Tax