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
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