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HomeMy WebLinkAbout2013-027 Charitable and Nonprofit Organization Gambling Tax Exemption; YMC Amendment 5.49.020B(1)ORDINANCE NO. 2013 -027 AN ORDINANCE relating to Chapter 5.49 of the City of Yakima Municipal Code on gambling tax, and amending section 5.49.02013(1) of the YMC to exempt bona fide charitable or nonprofit organizations conducting bingo games, raffles, amusement games, or punchboards or pulltabs from the provisions of the YMC gambling tax when the income, as provided in the ordinance, does not exceed $50,000 per year. BE IT ORDAINED BY THE CITY OF YAKIMA: SECTION 1. Section 5.49.02013(1) of the Yakima Municipal Code is amended to read as follows: 5.49.020 Taxes imposed— Amounts — Exemptions. 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, any bingo or raffle, at the rate of ten 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 conduct 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; 4. 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; 5. Any social card game, a tax computed at the rate of ten percent of the gross receipts from the conduct of such activity; 6. 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, amusement games, or punchboard or pulltabs, when such organization has gross income from bingo, raffles, amusement games, punchboards or pulltabs, or any combination thereof not exceeding fifty 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 YMC 5.49.030, and only the amount of the referenced gross income above fifty thousand dollars per year, less the amount paid for prizes, is subject to the City of Yakima taxes set forth in YMC 5.49.020A. (2) A bona fide charitable, nonprofit organization as defined by RCW 9.46.0209 organized for the benefit of and that provides services to United States military veterans, and that limits membership in said organization to veterans of the various branches of the United States military, conducting bingo, raffles, amusement games or gambling within the city shall be exempt from payment of the taxes imposed by this chapter upon compliance with the requirements of YMC 5.49.030. (3) 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 YMC 5.49.030 when the proceeds of such activities are applied for the benefit of any such school, or school- sponsored or school - related organization. (4) 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. (Ord. 2006 -45 § 1, 2006: Ord. 99 -43 § 1, 1999: Ord. 97 -72 § 1, 1997: Ord. 94 -47 § 1, 1994; Ord. 3102 § 1, 1988; Ord. 2506 § 1, 1981: Ord. 2070 § 1, 1977: Ord. 1763 § 1, 1975: Ord. 1731 § 1 (part), 1974). 5.49.030 Filing of declaration of intent and copy of gambling license required. A. For the purpose of identifying who shall be subject to the tax imposed by this chapter, any person, association or organization intending to commence the conduct or operation within the city of Yakima of any gambling activity authorized by Chapter 9.45 of the Revised Code of Washington after January 1, 1975, shall, at least ten days prior to the commencement of any such activity, file with the city of Yakima a sworn declaration of intent to conduct or operate such activity specifying the dates, times and places on a form to be prescribed and provided by the director of finance and budget for the city of Yakima, together with a copy of the gambling license issued pursuant to Chapter 9.46 of this code. B. Any person, association or organization conducting or operating within the city of Yakima any gambling activity authorized by Chapter 9.46 of the Revised Code of Washington prior to January 1, 1975, and intending to continue the conduct or operation of such gambling activity on or after -2- January 1, 1975, shall, within fifteen days after January 1, 1975, comply fully with the requirements of subsection A of this section with respect to any authorized gambling activity conducted on or after January 1, 1975. (Ord. 93 -73 § 1, 1993: Ord. 93 -54 § 1, 1993; Ord. 1731 § 1 (part), 1974). SECTION 2. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance. SECTION 3. 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 Council. PASSED BY THE CITY COUNCIL, signed and approved this 18th day of June, 2013. Micah Caw , M or ATTEST: City Clerk F Publication Date: June 21, 2013.".. Effective Date: July 21, 2013 M, -3- �F �R BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.Sl For Meeting of: 6/18/2013 ITEM TITLE: Ordinance relating to Chapter 5.49 of the City of Yakima Municipal Code on gambling tax, and amending section 5.49.020B(1) of the YMC to exempt bona fide charitable or nonprofit organizations conducting bingo games, raffles, amusement games, or punchboards or pulltabs from the provisions of the YMC gambling tax when the income, as provided in the ordinance, does not exceed $15,000 per year. SUBMITTED BY: Helen A. Harvey, Senior Assistant City Attorney Cindy Epperson, Budget & Finance Director SUMMARY EXPLANATION: The proposed amended Ordinance on gambling tax is a result of direction from the City Council at its June 4, 2013 business meeting regarding the Yakima Municipal Code ( "YMC') gambling tax provisions on charitable and nonprofit corporations. YMC 5.49.020B(1) currently exempts nonprofit corporations from paying gambling taxes on bingo games, raffles or amusement games if the combined net receipts from these games are no more than $5,000 per year and the organization has no paid personnel. The proposed Ordinance amendment to YMC 5.49.020B(1) provides that a bona fide charitable or nonprofit organization conducting bingo games, raffles, amusement games, or punchboard or pulltabs is exempt from paying the . gambling taxes in YMC 5.49 on its first $15,000 of gross income per year, less the amount paid for prizes. The charitable or nonprofit organization would pay the gambling tax imposed by YMC 5.49 on the amount above $15,000, if any, of income per year as provided in the proposed amendment. Resolution: Ordinance: X Other (Specify): Contract: Contract Term: Start Date: End Date: Item Budgeted: Amount: Funding Source /Fiscal General Fund. Impact: Strategic Priority: Public Safety Insurance Required? No Mail to: Phone: APPROVED FOR SUBMITTAL: RECOMMENDATION: City Manager Pass proposed amendment to YMC 5.49.02013(1) pursuant to Council direction on June 4, 2013. ATTACHMENTS: Name: Description: F-] ORD. NO. 2013- Amending Gambling Tax Nonprofit clean.docx ordinance gambling tax amendment 0 ORD. NO. 2013- Amending Gambling Tax Nonprofit Redlined.docx ordinance gambling tax amended redline ORDINANCE NO. 2013- AN ORDINANCE relating to Chapter 5.49 of the City of Yakima Municipal Code on gambling tax, and amending section 5.49.02013(1) of the YMC to exempt bona fide charitable or nonprofit organizations conducting bingo games, raffles, amusement games, or punchboards or pulltabs from the provisions of the YMC gambling tax when the income, as provided in the ordinance, does not exceed $15,000 per year. BE IT ORDAINED BY THE CITY OF YAKIMA: SECTION 1. Section 5.49.02013(1) of the Yakima Municipal Code is amended to read as follows: 5.49.020 Taxes imposed— Amounts — Exemptions. 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, any bingo or raffle, at the rate of ten 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 conduct 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; 4. 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; 5. Any social card game, a tax computed at the rate of ten percent of the gross receipts from the conduct of such activity; 6. 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 amusement games, or punchboard or pulltabs, when such organization "ar, n„ paid eperatiRg or rnaRageMeRt PeFSE)nnol Pn.d has gross income from bingo, raffles -- amusement games punchboards or pulltabs, or any combination thereof not exceeding fi*L-fifteen 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 YMC 5.49.030, and only the amount of the referenced gross income above fifteen thousand dollars Per year, less the amount paid for prizes, is subject to the City of Yakima taxes set forth in YMC 5.49.020A. (2) A bona fide charitable, nonprofit organization as defined by RCW 9.46.0209 organized for the benefit of and that provides services to United States military veterans, and that limits membership in said organization to veterans of the various branches of the United States military, conducting bingo, raffles, amusement games or gambling within the city shall be exempt from payment of the taxes imposed by this chapter upon compliance with the requirements of YMC 5.49.030. (3) 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 -2- be exempt from the provisions of this chapter upon compliance with YMC 0.40.030 when the proceeds of such activities are applied for the benefit of any such school, or school- sponsored or school - related organization. (4) 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. (Ord. 2006 -45 § 1, 2006: Ord. 99 -43 § 1, 1999: Ord. 97 -72 § 1, 1997: Ord. 94 -47 § 1, 1994; Ord. 3102 § 1, 1988; Ord. 2506 § 1, 1981: Ord. 2070 § 1, 1977: Ord. 1763 § 1, 1975: Ord. 1731 § 1 (part), 1974). 5.49.030 Filing of declaration of intent and copy of gambling license required. A. For the purpose of identifying who shall be subject to the tax imposed by this chapter, any person, association or organization intending to commence the conduct or operation within the city of Yakima of any gambling activity authorized by Chapter 9.45 of the Revised Code of Washington after January 1, 1975, shall, at least ten days prior to the commencement of any such activity, file with the city of Yakima a sworn declaration of intent to conduct or operate such activity specifying the dates, times and places on a form to be prescribed and provided by the director of finance and budget for the city of Yakima, together with a copy of the gambling license issued pursuant to Chapter 9.46 of this code. B. Any person, association or organization conducting or operating within the city of Yakima any gambling activity authorized by Chapter 9.46 of the Revised Code of Washington prior to January 1, 1975, and intending to continue the conduct or operation of such gambling activity on or after January 1, 1975, shall, within fifteen days after January 1, 1975, comply fully with the requirements of subsection A of this section with respect to any authorized gambling activity conducted on or after January 1, 1975. (Ord. 93 -73 § 1, 1993: Ord. 93 -54 § 1, 1993; Ord. 1731 § 1 (part), 1974). -3- SECTION 2. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance. SECTION 3. 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 Council. PASSED BY THE CITY COUNCIL, signed and approved this _ day of June, 2013. ATTEST: City Clerk Publication Date: Effective Date: Micah Cawley, Mayor I"