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Home My WebLink About2012-014 ORDINANCE NO. 2012-014 AN ORDINANCE OF THE CITY OF ARLINGTON,WASHINGTON AMENDING ARLINGTON MUNICIPAL CODE CHAPTER 3.32 REGARDING GAMBLING TAXES WHEREAS, the City of Arlington, Washington has the authority to enact laws to tax certain activities occurring within the City; and WHEREAS, the City Council wishes to amend the gambling tax rates within the City; and WHEREAS, the City Council believes it is in the best interests of its citizens to modify the gambling tax provisions of the City code; NOW, THEREFORE, the City Council of the City of Arlington do hereby ordain as follows: Section 1. Arlington Municipal Code section 3,32.050 shall be amended to read as follows: 3.32.050 - Tax on social card games. (a) Subject to the requirements of paragraph (b), below, there is levied upon and shall be collected from and paid as hereinafter provided by every person, association, or organization conducting social card games, as authorized pursuant to RCW Chapter 9.46 and this chapter, a tax on the gross revenue received from the conducting of such social card games, as follows: (1) Seven percent for the period beginning on the effective date of this section through December 31, 2012; (2) Eight percent for the period beginning January 1, 2013 through December 31, 2013; (3) Nine percent for the period beginning January 1, 2014 through December 31, 2014; (4) Ten percent for the period beginning January 1, 2015 through December 31, 2015; (5) Eleven percent for the period beginning January 1, 2016 through December 31, 2016; and (6) Twelve percent for all periods beginning January 1, 2017; provided, however, that subject to the requirements of RCW 9.46.113, any such funds collected shall be used for public safety capital and equipment expenses. (b) When the number of operating social card game establishments exceeds one, then the tax on the gross revenue received from social card games shall be established at fifteen percent ORDINANCE NO. 2012-014 1 (15.0%) when there are two social card game establishments, and twenty percent (20.0%) when there are more than two social card game establishments. For purposes of this provision, an operating social card game establishment is defined as: a social card game establishment open to the public and engaged in the business of operating a social card game for a period of thirty (30) days. For purposes of this section, the thirty (30) days are not required to be consecutive days. After the first thirty (30) days of operations of a new establishment, or the closure of an establishment for a period greater than thirty (30) days, which will trigger the changed tax rate, the Finance Director or his or her designee, shall notify the social card game establishments of the changed rate and that rate shall be paid thereafter by all card rooms in this tax category, starting the fiscal quarter after notification. Section 2. Arlington Municipal Code section 3.32.110 shall be amended to read as follows: (a) Whenever, upon petition by a taxpayer for a refund or otherwise, the finance director determines that a sum paid under this chapter was in excess of the amount properly due within a one-year period preceding the determination or written petition for a refund, and a refund is payable,the finance director credits the overpayment to the taxpayer's account or refunds it at the taxpayer's option. The finance director's decisions may be appealed as provided in Section 3.32.130 Section 3. Arlington Municipal Code section 3.32.130 shall be amended to read as follows: 3.32.130 - Appeals. (a) The finance director's determination of tax owing, including penalties and interest, may be appealed by filing, in proper form, an appeal with the finance director within twenty days of the date of determination. Copies are also to be provided by the appealing party in such time to the city attorney. The date of determination is the date reflected therein or, if mailed, three days from the date of mailing, whichever is later. "Filing" requires actual receipt. As a further condition of appeal, a taxpayer must tender to the city treasurer, pending the outcome of the appeal, the full amount of all taxes, fees, penalties and delinquencies assessed by the city. The taxpayer must further pay a filing fee in an amount to be established by city resolution. (b) To be accepted, in proper form, as timely, appeals must show: (1) The taxpayer's name, telephone number and business address; (2) The tax period and taxpayer's gross revenue from business activity in the city for that period with which the appeal is concerned; ORDINANCE NO. 2012-014 2 (3) A receipt or other proof from the city treasurer showing payment of the amount determined owing by the department; (4) The amount of tax, interest and penalty the taxpayer contends is due and method of calculation; and (5) Reasons why a correction should be granted. The appeal must be signed, verified under oath and dated by an authorized representative of the taxpayer. (c) Appeals hearings shall be held before the city hearing examiner. At the hearing, the determination appealed from is regarded as prima facie correct. The hearing examiner, by subpoena, may require any person to attend the hearing and may also require any person to testify under oath and upon personal knowledge and to produce documents or records deemed relevant or necessary. It shall be unlawful for any person with such subpoena to fail to appear at the time and place stated, to fail to produce the books and records requested, if any, or to fail to testify truthfully. (d) The hearing examiner shall preserve a record or the hearing in such form and manner as is deemed proper. The hearing examiner may reverse or modify the finance director's decision and may assess the correct amount of tax, penalty, or interest due if the hearing examiner determines the assessment violates the provisions of this chapter or is contrary to law. The decision of the hearing examiner is final, subject to review by either party under the provisions of RCW 7.16.040, so long as the appealing party files and serves upon all necessary parties the petition for a writ of review within twenty days of the date of issuance of the council's decision. Section 4. Arlington Municipal Code section 3.32.170 shall be amended to read as follows: 3.32.170 - Tax constitutes debt—Right of recovery. Any tax due and unpaid under this chapter and all penalties thereon shall constitute a debt to Arlington, a municipal corporation, and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. The right of recovery by the city from the taxpayer for any tax provided hereunder shall be outlawed after the expiration of five years pursuant to RCW 9.46.350, and the right of recovery against the city because of overpayment of tax by any taxpayer shall be outlawed after the expiration of one year, after which time the taxpayer shall have no right of recovery against the city of Arlington. ORDINANCE NO. 2012-014 3 Section 5. Severability. If any provision, section, or part of this ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. Section 6. Effective Date. This ordinance shall be effective five days from its adoption and publication as required by law. PASSED BY the City Council and APPROVED by the Mayor this day of C , 2012. CITY OF ARLINGTON Barbara Tolbert, Mayor Attest: Kristin Aanfield, City Cle k Approved as to form: Stef en J.Y.4ifffe Cit orney ORDINANCE NO. 2012-014 4 CERTIFICATION OF ORDINANCE I, Kristin Banfield, being the duly appointed and acting Clerk of the City of Arlington, Washington, a municipal corporation, do hereby certify that the following Ordinance #2012-014 was approved at the July 16, 2012 City Council meeting. ORDINANCE#2012-014 "AN ORDINANCE OF THE CITY OF ARLINGTON, WASHINGTON AMENDING ARLINGTON MUNICIPAL CODE CHAPTER 3.32 REGARDING GAMBLING TAXES" A true and correct copy of the original ordinance is attached. Dated this 18th day of July, 2012. 1 isti Banfield 61 City Clerk for the City of Arlington