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Ordinance No. 1117 - Amending YMC 3.40 Gambling TaxORDINANCE NO. 1117 AN ORDINANCE OF THE CITY OF YELM, WASHINGTON, AMENDING YELM MUNICIPAL CODE 3.40 GAMBLING TAX, ORDINANCE 182 AND ORDINANCE 330, PROVIDING FOR THE TAXATION OF PUNCHBOARDS AND PULL TABS OPERATED WITHIN THE CITY OF YELM AND REQUIRING SUPPORTING DOCUMENTATION FOR GAMBLING TAX REPORTS. WHEREAS, the City has imposed a 3% gambling tax on the gross receipts of punchboard and pull tabs since 1975; and WHEREAS, operators have requested the City change the code to impose gambling tax on net receipts instead; and WHEREAS, to review net receipts, the City will require a copy of the operator's Quarterly License Report as submitted to the WA State Gambling Commission; now, therefore, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF YELM AS FOLLOWS: Section 1. Section 1 of Ordinance 330 Part E and Municipal Code section 3.40.020 Part E Punchboards and Pull Tabs should be amended to read as follows: Punchboards and Pull tabs. In the amount of net receipts from the operation, use, or patronage of the punchboards or pull tabs themselves, multiplied by the rate of three percent (3°10); Section 2. Section 3.40.030 amended to read; Each of the various taxes imposed by this chapter shall be computed on the basis of activity during each calendar quarter year, shall be due and payable in quarterly installments, and remittance therefor, together with City of Yelm return forms and a copy of the taxpayer's Quarterly License Report as outlined and required under WAC 230-05-124, shall be made to the city on or before the last day of the month next succeeding the quarterly period in which the tax accrued, that is, on January 3110, April 30t1', July 3111, and October 3151 of each year; provided, that the following exceptions to this payment schedule shall be allowed, or required: A. Except as provided in subsection B of this section whenever any person, association or organization taxable hereunder conducting or operating a taxable activity on a regular basis discontinues operation of that taxable activity for a period of more than two consecutive months, or quits business, sells out, or otherwise disposes of its business, or terminates the business, any tax due hereunder shall become due and payable, and such taxpayer shall, within 10 days thereafter, make a return and pay the tax due. B. It is recognized that some bona fide charitable or bona fide nonprofit organization taxpayers will be conducting or operating taxable activities only upon an occasional and random basis. Except as provided in subsection C of this section, when such a taxpayer conducts only one taxable activity during any calendar quarter, the duration of each such activity does not exceed seven consecutive calendar days, and the gross receipts therefrom do not exceed $300.00 per quarter, that taxpayer need not remit the tax due with a return therefor until on or before January 31st of the year following that year in which the activity took place. Such returns shall be made upon a special form to be supplied by the city clerk/treasurer. C. Whenever it appears to the city clerk/treasurer that the collection of taxes from any person, association or organization may be in jeopardy, the city clerk/treasurer, after not less than 10 days' notice to the taxpayer, is authorized to require that taxpayer to remit taxes and returns at such shorter intervals than quarterly or annually, as the city clerk/treasurer deems appropriate under the circumstances. (Ord. 182 § 3, 1975). Adopted by the Yelm City Council at the regular meeting this 251h day of June 2024. ATTEST: Kathy Unnem r, City Clerk PUBLISHED: '7 -(c) u A � gg EFFECTIVE DATE: Lp-Qr'4)c�Y N p 841. 1924 WA SHINGTO"ISI Meeting Dater. CITY COUNCIL AGENDA ITEM SUMMARY City of Yelm, Washington AGENDA ITEM: ORDINANCE NO 1117 YELM MUNICIPAL CODE TITLE 3.40 GAMBLING TAX UPDATE PROPOSED MOTION., Proposed Update to the Yelm Municipal Code Title 3.40 to Amend Tax Rate on Punchboards & Pull Tabs, and Require Supporting Documentation to Return Form KEY FACTS AND INFORMATION SUMMARY: 1. Municipal Code section 3.40.020 Part E Currently imposes a 3% tax on the gross receipts from punchboards and pull tabs; however, operators have requested the city change the tax to impose the adopted rate on the net receipts. State law allows municipalities to impose a tax rate of up to 10% on net receipts. The Finance Committee has met and would like to propose a 3% tax on the net receipts. 2. Municipal Code section 3.40.030 To review the operator's calculations of net receipts, the City would request a copy of the operator's Quarterly License Report as outlined and required under WAC 230-06-124. Washington State Gambling Commission requires this report, so we would require a copy of the report already prepared for the Commission. ATTACHMENTS: Ordinance No 1117 Yelm Municipal Code Title 3.40 Gambling Tax Respectfully Submitted: Stephanie Nanavich, Finance Director 11Page