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HomeMy WebLinkAbout3437 Ordinance ORDINANCE NO. 3437 AN ORDINANCE of the City of Pasco, Washington, repealing Chapter 3.04 of the Pasco Municipal Code entitled "Admissions Tax" and creating Chapter 3.02 entitled "Admissions Tax". WHEREAS, The City Council of the City of Pasco, Washington, has determined that certain amendments regarding admissions tax are necessary for the improved enforcement and collection of admissions tax. These amendments update the tax language, allow exemption from taxation when applicable and ensure that the tax encompasses all relevant activities in the City of Pasco; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That Chapter 3.04 entitled "Admissions Tax" of the Pasco Municipal Code is hereby repealed in its entirety. Section 2. That Chapter 3.02 entitled "Admissions Tax" of the Pasco Municipal Code is enacted to read as follows: CHAPTER 3.02 ADMISSIONS TAX Sections: 3.02.010 Definitions: 3.02.020 Tax Imposed - Rates. 3.02.030 Admission tax exemption. 3.02.040 Form of admission ticket. 3.02.050 Selling tickets above stated price. 3.02.060 Business license. 3.02.070 Temporary amusement - property owner liable. 3.02.080 Collection of tax. 3.02.090 Remittance of tax. 3.02.100 Books and records. 3.02.110 Termination of collector's business. 3.02.120 Procedure upon failure to file return. 3.02.130 Interest and penalty. 3.02.140 Rules and regulations. 3.02.150 Applications and returns confidential. 3.02.160 Failure to remit. 3.02.170 Violation - Penalty. 3.02.180 Administrative Appeal 3.02.190 Severability. 3.02.010 DEFINITIONS. (1) "Admission Charge," in addition to its usual and ordinary meaning includes: (a) A charge made for season tickets and subscriptions; and (b) A cover charge, or a charge made for use of seats and tables reserved or otherwise, and other similar accommodations; and (c) A charge made for food and refreshment in any place where free entertainment, recreation or amusement is provided; and (d) A charge made for rental or use of facilities for purposes of recreation or amusement for which general admission is normally charged on an individual basis shall be considered as the admission charge; and (e) Automobile parking charges if the amount of the charge is determined according to the number of passengers in an automobile; and M Any sum of money referred to as "a donation" which must be paid before entrance is allowed. (2) "Bona Fide Charitable or Non-Profit Organization" means any organization duly existing under the provisions of RCW Chapters 24.12, 24.20 or 24.28, or any agricultural fair organized under the provisions of RCW 36.37 or 15.76, or any non-profit corporation duly existing under the provisions of RCW Chapter 24.03 for charitable, benevolent, educational, civic, patriotic, political, social, fraternal, athletic or agricultural purposes, or any non-profit organization or association, whether incorporated or otherwise, when found by the Treasurer to be organized and operating or conducting an event or activity for one or more of the above-listed purposes. (3) "Person" means an individual, receiver, assignee, firm, partnership, joint venture, corporation, company, joint stock company, limited liability company, limited liability partnership, association, society, or a group of individuals acting as a unit whether mutual, cooperative, fraternal, non-profit or otherwise. (4) "Place" includes, but is not restricted to theaters, dance halls, amphitheaters, nightclubs, auditoriums, stadiums, athletic pavilions or fields, swimming pools, aquatic parks, baseball or other athletic parks, ice arenas, golf courses, or driving ranges, adult entertainment facilities as defined in PMC 5.27, circuses, side shows, amusement parks, merry-go-rounds, ferns wheels, roller coasters, observation towers, arcades and similar attractions. (5) "Treasurer" means the Treasurer of the City of Pasco or his designee. 3.02.020 TAX IMPOSED - RATES. A tax in the amount of two and one half (2.5%) percent of the admission charge shall be levied and imposed upon every person (including children, without regard to age) who pays an admission charge to any place, including a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same or similar privileges or accommodations. Whenever the charge to women, children or senior citizens for admission to any place is less than the charge made to other persons, or when such persons are admitted free, the lesser admission charge is not considered to be a reduced rate under this chapter. The amount of tax payable by such persons shall be determined by the amount of actual admission tax paid. 3.02.030 ADMISSION TAX EXEMPTION. (1) The admission tax listed in section 3.02.020 is not imposed: (a) When the admission charge, either for a single event or by prorating a season ticket or subscription price, is ten cents or less; or (b) Upon a person paying an admission charge to an activity of an elementary or secondary school where the school or school district is the sponsor; or (c) Upon a person paying an admission charge to an activity of an accredited public or private college, junior college, university, or the recognized student body association thereof; or (d) Upon admission charges paid by any government agency; or (e) Where no admission charge or compensating payment is collected from the persons attending the activity or event; or (f) Upon a person paying an admission charge to an activity or performance of a bona fide charitable or non-profit organization furnishing evidence of their organization's status under one of the applicable RCW chapters as listed in section 3.02.010 (2); provided: (i) The City Treasurer's office receives a properly completed license application, including proof of the organization's status, for this exemption at least fifteen days prior to the event; and (ii) The bona fide charitable or non-profit organization must be organized and operated exclusively for those purposes detailed in the RCW chapters listed in section 3.02.010 (2); and (iii) The bona fide charitable or non-profit organization must be fiscally responsible for the event and receive the full benefit and use of the proceeds from the event. If the bona fide charitable or non-profit organization contracts with a non-exempt person to conduct the event on its behalf, the exemption applies only if the exempt organization receives payment of its expenses and charges a net sum equal to at least twenty percent (20%) of the anticipated gross of admission charges. (2) This section is to be construed strictly against an exemption. (3) The exemption to admission tax as provided in this section shall not apply to an event in which a college, university or non-profit organization lends its name to an endorsement for an ineligible person for the purpose of invoking the tax exemption. 3.02.040 FORM OF ADMISSION TICKET. (1) A person may not sell or offer for sale an admission ticket or card which does not have the name of the place of the ticketed event and the total admission price, which shall include the admissions tax, conspicuously and indelibly printed, stamped, or written on that part of the ticket which is to be taken up by the management of the place at the time of admission. (2) All tickets sold must be consecutively numbered or reflect house seat locations to allow the City Treasurer's office to verify the number of tickets sold. 3.02.050 SELLING TICKETS ABOVE STATE PRICE. (1) No person may sell an admission ticket or card at a price in excess of the price printed, stamped, or written thereon. (2) This section does not forbid a ticket agent, duly authorized to sell tickets by the event presenter, from collecting a reasonable handling charge from the purchaser, in addition to the disclosed ticket price, consistent with general marketing practices in the Tri-Cities area. The handling charge is not part of the admission charge for purposes of the City admissions tax. 3.02.060 BUSINESS LICENSE. Any person conducting or operating any place for entrance to which an admission charge is made shall, on a form prescribed by the City Treasurers office make application to and procure from the City a business license, the fee for which license shall continue valid until the thirty-first day of December of the year in which the same is issued. Such licenses or duplicate original copies thereof to be issued by the City without additional charge, shall be posted in a conspicuous place in each ticket or box office where tickets or admissions are sold. 3.02.070 TEMPORARY AMUSEMENT - PROPERTY OWNER LIABLE. A temporary business license is to be obtained for the purpose of operating or conducting a temporary or transitory amusement, entertainment, concert, dance or exhibition by persons who are not the owners, lessees or custodians of the building lots or place where the amusement is to be conducted. The tax imposed by this chapter shall be reported and remitted as provided in Section 3.02.090 by the owner, lessee or custodian, unless paid by the person conducting such activities. The applicant for a temporary business license for such purpose shall furnish with the application therefor, the name and address of the individual responsible for the collection and payment of the admission tax and the owner, lessee or custodian of the premises who shall be jointly and severally liable to the City for the collection and remittance of such tax. 3.02.080 COLLECTION OF TAX. Every person receiving any payment for admission is required to collect the amount of the admissions tax from the person making the admission payment at the time the admission charge is paid. 3.02.090 REMITTANCE OF TAX. (1) The tax collected under this chapter shall be deemed held in trust until paid to the City Treasurer. Should a person required to collect the admissions tax fail either to collect or remit the tax, the City shall have a similar claim for the amount of the tax, plus interest as provided in this chapter, against the proceeds of admissions charges received by such person. (2) Unless in a particular case, the Treasurer directs or authorizes a different procedure, each person required to collect the admissions tax must file a tax return accompanied by remittance of the tax due bi-monthly, by the fifteenth day of the month next following the end of each bi-monthly reporting period. The City Treasurer shall prescribe the form and content of such tax returns. Whenever it reasonably appears the collection of taxes due is in jeopardy, the Treasurer, after notice to the person collecting the tax, is authorized to require reporting and payment of taxes due at any interval other than bi-monthly as the Treasurer shall deem appropriate under the circumstances. Bi-monthly reporting periods are as follows: January- February; March-April; May-June; July-August; September-October; and November-December. Corresponding admissions tax due dates are March 15'h, May 15t", July 15', September 15'', November 15'h and January 15t1i (3) Not by way of limiting the Treasurer's discretion to regulate the remittance of the tax under this chapter, the Treasurer is specifically authorized to require verified annual tax returns and to require the immediate remittance of the tax on admissions to a single event or series of events of a temporary or transitory nature. (4) Payment or remittance of the tax collected may be made by check, unless payment or remittance is otherwise required by the Treasurer, but payment by check shall not relieve the person collecting the tax from liability for payment and remittance of the tax to the City unless the check is honored and is the full and correct amount. (5) The Treasurer may, after giving notice to the person collecting the tax, require the placement of taxes collected in a trust account at an approved local depository bank. The taxes collected shall be held in said trust account until payment to the City is made. The Treasurer shall have such authority when he deems a trust account is necessary to insure payment of the taxes collected to the City. 3.02.100 BOOKS AND RECORDS. Every person required to collect the admission tax is required to keep and make available at all reasonable times for inspection and audit by the City Treasurer all books, records, and accounts pertinent to the tax for a period of two years. 3.02.110 TERMINATION OF COLLECTOR'S BUSINESS. Whenever a person required to collect the tax under this chapter quits or otherwise disposes of the business, any tax collected shall become immediately payable to the City Treasurer. If such tax is not remitted within ten days after a sale or other disposal of the business, the purchaser or successor shall become liable to the City for such tax. 3.02.120 PROCEDURE UPON FAILURE TO FILE RETURN. Should a person fail to file a required admissions tax return, the Treasurer shall make a determination of the amount of tax due from such person based on whatever information is available and shall notify such person by mail of the amount of tax so determined, along with any applicable interest and penalties, and direct such person to remit the amount due within ten days. 3.02.130 INTEREST AND PENALTY. (1) Should a person fail to pay the tax due in the time prescribed, said person shall become liable for interest on the tax due at the rate of one percent (1 0/6) per month. Interest calculations shall commence the day following the due date. (2) Should a person fail to pay the tax due within thirty (30) days after it is due, said person shall become liable for a penalty of ten percent (10%) of the amount of the tax due, in addition to the interest provided for in subsection (1) above, for each payment in default. 3.02.140 RULES AND REGULATIONS. The City Treasurer may adopt and promulgate rules and regulations for administration and enforcement of this chapter, subject to the approval of the City Council, and shall place on file a copy of such rules and regulations for public examination in the City Treasurer's Office. 3.02.150 APPLICATIONS AND RETURNS CONFIDENTIAL. (1) The applications, returns and any information required of any taxpayer, including any audits or investigations made by the City Treasurer or his agent, shall not be disclosed for inspection or copying if such disclosure would (i) be prohibited to such persons by law; or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer. This section does not prohibit the City or its agents from: (a) Giving such facts or information in evidence in any court action involving the tax imposed hereunder or involving a violation of this chapter; or (b) Giving such facts and information to the person paying the tax or his duly authorized agent; or (c) Publishing statistics so classified as to prevent the identification of particular returns and reports of items thereof, or (d) Permitting its records to be audited and examined by the proper state officer, his agents and employees. (2) The City consents to the inspection of such records as necessary by the State Department of Revenue. 3.02.160 FAILURE TO REMIT. Any person designated in the application as the responsible person for the collection and remittance of admissions tax as provided in PMC 3.02.060 and 3.02.070, shall be individually, jointly, and severally liable for the amount of the tax due. Any tax due and unpaid under this chapter, and all penalties thereon, constitute a debt to the City and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy is in addition to all other existing remedies. 3.02.170 VIOLATION - PENALTY. It is unlawful for a person to fail to comply with any requirement of this chapter or the rules and regulations promulgated hereunder. Each violation is a separate offense and except as otherwise provided is punishable as a civil infraction. 3.02.180 ADMINISTRATIVE APPEAL. Any taxpayer aggrieved by the amount of tax, interest, or penalties determined by the Treasurer to be due under the provisions of this Chapter, shall appeal such determination to the City Manager or his designee. Taxpayers shall be required to remit the amounts to be due under this Chapter prior to filing an appeal. 3.02.190 SEVERABILITY. Should any provision of this chapter or its application to any person or circumstances be held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. Section 3. This ordinance shall take effect and be in force from and after its passage and five days following its publication as required by law. PASSED by the City Council of the City of Pasco at a regular meeting this 2°a day of October, 2000. / llue& - I Michael L. Garrison, Mayor ATTEST: APPROVED AS TO FORM: Catherine D. Seaman, Deputy City Clerk Leland B. Kerr, City Attorney