HomeMy WebLinkAboutO-2811 - Adds Ch. 3.86, admissions tax (3.86)CITY OF MARYSVILLE
MARYSVILLE, WASHINGTON
ORDINANCE NO....2i1.L
AN ORDINANCE OF THE CITY OF MARYSVILLE, WASHINTON, ESTABLISmNG AN
ADMISSION TAX; PROVIDING FOR NECESSARY ADMINISTRATIVE PROCEDURES FOR THE
COLLECTION AND ENFORCEMENT OF SUCH A TAX; PROVIDING PENALTIES FOR FAILURE
TO TIMELY PAY THE TAX; AND PROVIDING FOR THE EFFECTIVE DATE OF THIS
ORDINANCE
WHEREAS, RCW 35.21.280 authorizes the City to collect a tax on admission charges in the City;
and
WHEREAS, the City Council has determined that it is in the best interests of the City to impose
such an admissions tax;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE DO ORDAIN
AS FOLLOWS:
Section 1: A new Chapter 3.86 of the Marysville Municipal Code is hereby adopted which shall
read as follows:
Chapter 3.86
ADMISSIONS TAX
SECTIONS:
3.86.010 Definitions.
3.86.020 Certificate of registration.
3.86.030 Tax levied.
3.86.040 Business license required.
3.86.050 Exemptions.
3.86.060 Counting number of admissions.
3.86.070 Printing admission charges.
3.86.075 Unlawful sales of tickets in excess of price.
3.86.080 Posting admission charge.
W/MV/Ord.Ma'Ysville Admission.F
3.86.090 Tickets sold elsewhere than regular ticket office.
3.86.100 Collection and remittance.
3.86.110 Penalty for late payment.
3.86.120 Transient business remittance.
3.86.130 Applications and returns confidential.
3.86.140 Sporting events and places.
3.86.150 Ticket sale outlet.
3.86.160 Overpayment of admissions tax.
3.86.170 Inspection of records.
3.86.180 Violator -Violations.
3.86.190 Penalty for violation.
3.86.010 Definitions.
A. "Admissions charge," in addition to this usual and ordinary meaning, includes but is not limited in
meaning to:
1. A charge for season tickets or subscriptions;
2. Required "donation";
3. A cover charge, or a charge made for use of seats and tables reserved or otherwise, and other
similar accommodations;
4. A charge made for food and refreshment in any place where free entertainment, recreation or
amusement is provided;
5. Cover charges to night clubs, lounges, private clubs, or similar places.
6. Admission to any theater, indoor or outdoor amusement park, for admission to any carnival,
or indoor or outdoor amusement park the admission tax shall be imposed upon admission to such
carnivals or amusement parks. However, the city will not impose an additional tax upon
admissions to any mechanical devices, amusements type booths or activities and/or rides such as
merry-go-rounds, ferris wheels, etc., within said carnival or park unless there is no admission
charge "at the gate" for such events. Then the person conducting the event is required to collect a
tax for the admission to the various rides.
W/MV/Ord.Marysville Admission.F
7. Where an admission is required to be paid to gain entrance to any building, enclosure, place
or area in which there is a for profit professional or semi-professional sporting event. This tax
shall be assessed on admission charges whether in the form of membership fee, season tickets or
other charges for privilege ofusing or attending the event. The admissions tax shall apply to
tickets sold by Marysville based ticket sales outlets for local events only. Additionally, the tax
shall also apply to ticket sales outlets which are not located in Marysville but are selling tickets
for events in Marysville.
8. There shall be levied an admission tax at the rate set forth in MMC 3.86.030 on the gross
admission charge, whether in form of a membership fee or regular charge, for the privilege of
playing golf, on golf courses, driving ranges and practice courses, applicable to both private and
public facilities. Provided, however, the tax shall not apply to the cost for rental of equipment
such as golf clubs or carts.
B. "Fraternal" means an association or society of persons formed for mutual aid and benefit, but not for
profit.
C. "Government activities" means activities that are sponsored or conducted by other local
governments, county, state or federal governments.
D. "Person" means any individual, receiver, assignee, firm, copartnership, joint venture, corporation,
company, joint stock association, society, any group of individuals acting as a unit, whether mutual,
cooperative or fraternal, or any nonprofit or not-for-profit corporation or organization as the term
"nonprofit" is defined under the statutes of the state of Washington, RCW 82.04.365 and 82.04.366.
E. "Religious organization" means an organization engaged in the practice of a particular faith or
central beliefs.
F. "Ticket sales outlet" means the location of any agency, person, group, etc. that is in charge of
distributing, selling, or otherwise managing the sale of tickets and are collecting the fees for such tickets
to any of the described events.
G. "Transient" means temporary, short-lived, nonpermanent or non-lasting.
H. "City-sponsored event" means any program or event provided by the City of Marysville or any of its
departments.
1. "City co-sponsored event" means an event which benefits the community and for which the City of
Marysville and another entity share jointly the expenses and responsibilities ofproviding the event. For
an event to be co-sponsored by the City, there must be a formal written agreement entered into between
the City and the other entity or entities sponsoring the event in which the City agrees to the co
sponsorship. A lease agreement from the City to another entity does not constitute co-sponsorship unless
the lease specifically provides that it does.
J. "Nonprofit organization" means an organization, corporation, or association organized and operated
for the advancement, appreciation, public exhibition or performance, preservation, study and/or teaching
W/MV/Ord.Marysville Admission.F
of the perfonning arts, visual arts, history, science, or a public charity providing social or human
services or public education and which is currently recognized by the United States of America as
exempt from federal income taxation pursuant to Section 50l(c)(1) or (3) of the Internal Revenue Code,
as now existing or hereafter amended. (Ord. 2291 § 1, 1999)
3.86.020 Certificate of registration.
A. Every person, finn or corporation, prior to conducting or operating any event, or place of entrance,
to which an admission charge is made, shall complete a certificate of registration and file the same with
the Finance Director. The certificate of registration shall continue to be valid until December 31 st of the
same year in which it was issued. The application for certificate of registration, or a duplicate of it shall
be posted in the ticket office or box office where tickets or admission are sold.
B. Whenever registration is made for the purpose of operating or conducting a temporary or transitory
event by persons who are not the owners, lessees or custodians of the building, lots or place where the
activity is to be conducted, both the person conducting the event and the owner, lessee or custodian,
shall be held jointly liable for collection and remittance of the said tax. The owner, lessee and/or
custodian shall be responsible for the remittance of the entire admissions tax unless the tax is paid by the
conductor of the event.
3.86.030 Tax levied.
There is hereby levied and imposed upon every person without regard to age who pays an admission
charge to any place as described in MMC Chapter 3.86 a tax of one cent for each twenty cents, or
fraction thereof, paid for the admission charge. Failure to pay such tax or failure to collect such tax shall
be a violation of this chapter.
3.86.040 Business license required.
In addition to any licenses and fees required under Chapter 3.86, every applicant shall also obtain a
business license pursuant to Title 5 of the Marysville Municipal Code.
3.86.050 Exemptions.
The following activities are exempt from the provisions of this chapter:
1. Activities of elementary and secondary schools;
2. Activities of churches and religious organizations;
3. Government activities;
4. City-sponsored and City co-sponsored events; provided, that for profit activities conducted in
conjunction with such an event shall not be exempt;
W/MV/Ord.Marysville Admission.F
5. Activities of nonprofit organizations, as defined in Section 3.86.010(J); provided, that all ofthe
following requirements are met:
a. The nonprofit organization:
i. Publicly sponsors and through its members, representatives or personnel promotes and
publicizes the event; or
ii. Publicly sponsors and:
aa. Performs a major portion of the performance; or
bb. Supplies a major portion of the materials on exhibit; or
cc. When the event is part of a season or series ofperformances or
exhibitions, performs the major portion of the performances or exhibitions
in the season or series or supplies a major portion of the materials on
exhibit;
b. The nonprofit organization receives the use and benefit of the admission charges collected;
c. The proceeds from any single event sponsored by the nonprofit organization do not exceed
$100,000;
d. The event for which the exemption is claimed cannot be one for which a nonprofit
organization lends its name as an endorsement to an ineligible person or organization for the
purpose of invoking the exemption;
e. The nonprofit organization must be registered with the Finance Director's office as provided
in_MMC Section 3.86.020 and must provide a copy of its incorporation approval by the state of
Washington and any other proof deemed reasonably necessary by the Finance Director to verify
that the organization meets the definition of nonprofit organization established by this chapter;
3.86.060 Counting number of admissions.
Whenever a charge is made for admission to any place, a serially numbered or reserved seat ticket shall
be furnished to the person paying such charge unless written approval has been obtained from the
Finance Director to use a turnstile or other counting device which will accurately count the number of
paid admissions.
3.86.070 Printing admission charges.
A. The established price of admission, any non-city tax, city tax, and the total price at which each
admission ticket or card is sold, shall be conspicuously and indelibly printed or written on the face or
back of that part of the ticket which is to be retained by the management of the place to which admission
is gained. This requirement may be waived in regard to temporary or transient events, which due to time
WIMV/Ord.Marysville Admission.F
make it impossible to print up admission tickets. This waiver must be reviewed and authorized by the
Finance Director's office prior to authorizing the event.
B. It is unlawful for any person to sell an admission ticket or card without having the name of the person
conducting the event and the price of admission printed, stamped or written thereon. The admission tax
due shall be based on the established price printed on each ticket.
3.86.075 Unlawful sales of tickets in excess of price.
It is unlawful for anyone to sell or offer to sell an admission ticket or card at a price in excess of the
price printed, stamped or written thereon. This section does not prohibit a ticket agent, duly authorized
to sell tickets by the person or entity responsible for or in charge of conducting the subject vent, from
collecting a reasonable handling charge from the purchaser, in addition to the disclosed ticket price,
consistent with general marketing practices in the Marysville area. The handling charge shall also be
subject to tax in a sum equal to five percent of the amount of such excess or handling charge.
3.86.080 Posting admission charge.
At all events, when a charge is made for admission a sign must be posted in a conspicuous place at its
entrance or ticket office of the event which breaks down the admission charge as to (l) established price
of admission, (2) non-city tax imposed, if any, (3) city tax imposed, and (4) total price. The name of the
company or organization conducting the event, shall also be posted at the same place.
3.86.090 Tickets sold elsewhere than regular ticket office.
Whenever tickets are sold by a person outside of the city limits for an event located within the city
limits, that person shall collect the admission tax imposed thereon. Whenever tickets or cards of
admission are sold elsewhere than the ticket or box office of the place of event, any price or charge
made in excess of the established price or charge at such ticket or box office shall also be taxable in a
sum equal to five percent of the amount of such excess. This additional tax shall be paid by the person
paying the admission charge and shall be collected and remitted in the manner provided in Section
3.86.100 by the person selling such tickets.
3.86.100 Collection and remittance.
A. The person, firm or corporation receiving payment for admissions on which a tax is levied under this
chapter, shall collect the amount of the tax imposed from the person making payment for admission,
shall hold said tax in trust until the same is remitted to the Finance Director as herein provided, and shall
be personally liable for the amount of such tax if the same is not collected and remitted as herein
provided; provided, however, that for temporary or transient events, the owner, custodian etc., may be
responsible for the payment of the tax per MMC 3.86.020 and 3.86.100.
B. The tax imposed by this chapter shall be due and payable on a quarterly basis and remittance
therefore shall accompany each return and be in the Finance Director's office by five o'clock p.m. (5:00
p.m.) P.S.T. on or before the last day of each April, July, October and January, by the person, firm or
corporation collecting the same; provided, the Finance Director for good cause may require the return
WIMV/Ord.Marysville Admission.F
and remittance of the admissions tax immediately upon its collection or at the conclusion of the series of
performances or exhibitions, or otherwise as the Finance Director deems appropriate. The quarterly
returns shall be made on forms provided by the Finance Director, separately stating the number of
admissions sold, the price for each admission, and the amount of tax, shall be signed and verified by the
person making the return, and shall contain such other information as the Finance Director may specify.
3.86.110 Penalty for late payment.
A. For each payment due, if such payment is not made by 5:00 p.m. on the due date, there shall be
added penalties as follows:
1. One to fifteen days delinquency, ten percent with a minimum penalty of ten dollars;
2. After fifteen days delinquency, fifteen percent with a minimum penalty often dollars shall be
imposed.
B. Failure to pay tax is a violation of this chapter and may be punished as such in addition to the late
fees imposed.
3.86.120 Transient business remittance.
Whenever any activity subject to the tax imposed herein makes an admission charge and the same is of a
temporary or transitory nature, of which the Finance Director shall be the judge, the Finance Director
may require the return and remittance of the admissions tax immediately upon its collection or at the
conclusion of the taxable activity or otherwise as the Finance Director deems appropriate. An
application for a certificate of registration shall be required as noted in MMC 3.86.020. For temporary
or transient events, the owner, lessee or custodian shall be responsible for payment of this tax if the
person conducting the event fails to do so. Failure to comply with any requirement of the Finance
Director as to reporting and remittance of the tax as required shall be a violation of this chapter.
3.86.130 Overpayment of admissions tax.
Whenever the taxpayer has made an over-payment and within one (1) year after date of such
overpayment, upon submission of satisfactory proof thereof, makes application for refund or credit of
the overpayment, such refund or credit shall, where appropriate, be made.
3.86.140 Inspection of records.
The books, records, and accounts of any person, firm or corporation collecting a tax herein levied, shall,
as to admission charges and tax collections, be at all reasonable times subject to examination and audit
by the Finance Director and/or the State Auditor, and all such records shall be retained and be available
for such inspection for a period of at least six (6) years.
3.86.150 Violator-Violations.
W/MV/Ord.Marysville Admission.F
Any person who directly or indirectly perfonns or omits to perfonn any act in violation of this chapter,
including reporting posting requirements or aids or abets the same, whether present or absent, and every
person who directly or indirectly counsels, encourages, hires, commands, induces or otherwise procures
another to commit such violation is, and shall be a principal under the tenns of this chapter, subject to
penalty, and may be proceeded against such.
3.86.160 Penalty for violation.
Every person violating or failing to comply with any provision of this chapter or any lawful rule or
regulation adopted by the Finance Director pursuant thereto, is guilty of a gross misdemeanor and upon
conviction thereof shall be punished by a fine not to exceed $5,000 or by imprisonment for a tenn not to
exceed one year or by both such fine and imprisonment.
In addition to any other remedy, no business license shall be issued or renewed, and an existing business
license may be revoked, for a business which has failed to pay taxes or penalties required pursuant to
this Chapter.
Section 2: Severability. If any section, subsection, sentence, clause, phase or word of this
Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other
section, subsection, sentence, clause, phrase or word of this Ordinance.
Section 3: Effective Date: This Ordinance shall take effect and be in full force January 1,2010.
PASSED BY THE CITY COUNCIL OF THE CITY OF MARYSVILLE this ---.ti day of
December, 2009.
Mayor:
~d4
Dennis L. Kendall, Mayor
APPROVED AS TO FORM:
jJ~l.J~
&nt Weed, City Attorney
W/MV/Ord.Marysvilie Admission.F