HomeMy WebLinkAbout1997-072 Gambling Tax • ORDINANCE NO. 97 -_72 .
AN ORDINANCE relating to gambling taxes and amending section 5.49.020
of the Yakima Municipal Code.
WHEREAS, RCW 9.46.110, which provides limitations on local taxation of
gambling activities, was amended by the 1997 Washington legislature; and
WHEREAS, Section 5.49.020 of the Yakima Municipal Code, which
implements the authority to tax gambling activities provided by state law, must
conform to the provisions of RCW 9.46.110 as amended, and
WHEREAS, it is in the best interests of the City of Yakima that tax rates
applicable to certain gambling activities not affected by the 1997 amendments
to RCW 9.46.110 be revised in accordance with the rates applicable to gambling
activities affected by the 1997 amendments to RCW 9.46.110; now therefore:
1 BE IT ORDAINED BY THE CITY OF YAKIMA:
2 Section 1. Section 5.49.020 of the Yakima Municipal Code is amended to
3 read as follows:
4 Taxes Imposed -- Amounts -- Exemptions
5 A. Tax Imposed. There is levied a tax upon all persons, associations
6 and organizations who conduct or operate gambling activities within the city of
fib Yakima and who have been duly licensed by the Washington State Gambling
8 Commission to conduct or operate such gambling activities. Such tax shall be
9 paid on the following gambling activities in the following respective amounts:
1 0 1. Any bingo or raffle, at the rate of ten percent and any amusement
1 1 game at the rate of two percent of _- - : :.• - - - - : - - - : - - - . -
13 .. .. -: - -. - gross receipts less the amount awarded as cash or
1 4 merchandise prizes in the conduct of such activity;
15 2. Any punchboard or pulltab, a tax computed at the rate of five
16 _ - - - - - - - - • : - • - : • : -- ten percent of gross receipts less the
17 amount awarded as cash Or merchandise prizes in the conduct of such activity;
19 - -- -- ..- - . -- :. - - - - - _ _ -- _ ... -. -_ - :- -
2 0 such activity; .
21 3. Any social card game, a tax computed at the rate of twenty percent
2 2 ten percent of the gross ineeme-reeeived income-received receipts from the conduct of such
. 2 3 activity; provided, however, that effective October 1, 1 °94, and thereafter, such
2 6 4. Any public cardroom operated as a commercial stimulant, a tax
2 7 computed at the rate of twee - percent -ten percent of the gross income receive
2 8 receipts from the conduct of such activity; : : : - - - : • - - , -- - - ' - - -
2 9 e - _ _ • • • , .- - _ - - .. - , - - .. shall be computed at the rate of
0
31 B. Exemptions.
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ORDINANCE AMENDING GAMBLING TAX - Page 1
3 2 (1) A bona fide charitable or nonprofit organization as defined by
3 3 subsectio (3) of RCW 9.46.0202 conducting or sponsoring bingo games, raffles 4 0-
3 4 or amusement games when such organization has no paid operating or
3 5 management personnel and has gross income from bingo, raffles or amusement
3 6 games or any combination thereof not exceeding five thousand dollars per year,
3 7 less the amount paid for prizes, shall be entitled to exemption from the
3 8 provisions of this chapter upon compliance with the requirements of Section
3 9 5.49.030 of this code.
4 0 (2) Activities carried out by public or private schools or by
4 1 organizations sponsored by or related to public or private schools, including
4 2 parent organizations and student body organizations, shall be exempt from the
4 3 provisions of this chapter upon compliance with Section 5.49.030 of this code
4 4 when the proceeds of such activities are applied for the benefit of any such
4 5 school, or school sponsored or school - related organization.
4 6 (3) Any deviation from exemption restrictions enumerated herein shall
4 7 subject such organization to the requirements of this chapter to the same
4 8 extent as if such exemption had not been granted, including required payment
4 9 within ten days after written demand of the city department of finance of any
5 0 taxes formerly granted exemption hereunder.
This ordinance shall be in full force and effect January . 1, 1998, or 30"
days after its passage, approval, and publication as provided by law and by the
City Charter, whichever date shall be later. Any bona fide charitable or
nonprofit organization as defined by RCW 9.46.0209 which paid gambling taxes
in excess of the rate of ten percent of gross receipts less the amount awarded
as cash or merchandise for punch board or pull tab gambling activities which
occurred between July 27, 1997 and December 31, 1997, shall be entitled to
credit against gambling taxes due during 1998 for punch board or pull tab
gambling activities to the extent of such excess payment.
PASSED BY THE CITY COUNCIL, signed and approved this 2nd
day of December, 1997.
ynn Buchanan, Mayor
A TEST:
Ac=ing i ty Clerk
Publication Date: 12 -05 -97
Effective Date: 01 -04 -98
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legislation \local \SSB 5034 amends 11/97 11/26/97 1:55 PM
ORDINANCE AMENDING GAMBLING TAX - Page 2
7 :
BUSINESS OF THE CITY COUNCIL
• YAKIMA, WASHINGTON
AGENDA STATEMENT
/ 1Z
Item No.
For Meeting Of 12/2/97
ITEM TITLE: An Ordinance amending the Yakima Mull' al Code Relating to
Gambling Taxes
SUBMITTED BY: John Hanson, Director of Finance and Bu et
CONTACT PERSON/TELEPHONE: John Hanson /575 -60 0
SUMMARY EXPLANATION:
The purpose of this legislation is twofold. The first purpose is to amend existing City code
to comply with new State legislation regarding tax limits and structure on punchboard and
pulltabs offered by non - profit businesses. This ordinance will meet the requirements of
the new state law.
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Second, the City was approached by several for - profit businesses requesting a change in the
taxation on cardrooms. The businesses further asked the City to consider limiting the tax
on commercial for - profit business on punchboard and pulltabs to the same formula
prescribed by the legislature for non - profit businesses. The ordinance also amends the
(Continued )
Resolution X Ordinance Contract Other (Specify)
Funding Source
APPROVED FOR SUBMITTAL: ALA( P.,,, /6„,-,
City Manager
STAFF RECOMMENDATION: The Council Public Safety recommends passage of this
ordinance.
BOARD /COMMISSION RECOMMENDATION:
40 COUNCIL ACTION:
JH 12/2/97 Agenda
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Yakima Municipal Code relating to gambling taxes on commercial establishments to set
the punchboard and pulltab tax at the same formula mandated by the legislature for
bonafide non - profit organizations, and reduce the tax on cardrooms from 16% of gross
revenue to 10% of gross revenue.
If you will recall, the City, at the request of commercial stimulant establishments (trade`
stimulant operators), reduced the tax on punchboard and pulltabs from 5% of gross
revenue to 4% of gross revenue during the late 1980's.
Again, beginning in 1995, at the request of cardroom operators, the City reduced the tax on
cardrooms from 20% of gross revenue to 16% of gross revenue, thereby paralleling the
reduction made earlier for establishments offering punchboard and pulltabs.
At the request of several local business owners, the Council Public Safety Committee
consisting of Councilmembers Puccinelli, Berger, and Buchanan met with representatives
of the local establishments operating cardrooms and punchboards /pulltabs in September
and October of this year. The outcome of those meetings was a recommendation by the
Committee to the full City Council to make a change in the punchboard and pulltab tax fo
commercial establishments from 4% of gross to 10% of gross, less the amount paid f
prizes (the same language mandated by the State legislature for non - profits -- but left up to
local governments with regards to commercial business); and a change in the tax on
cardrooms from 16% of gross to 10% of gross.
The combined impact of the proposed changes to the City's budget is a reduction of
approximately $50,000 to $55,000, This change has been incorporated in the 1998 budget.
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JH 12/2/97 Agenda