Chapter 8.03
Admissions Tax

Sections:

8.03.010 Tax Levied.

8.03.020 Admission Tax Exemption.

8.03.030 Definitions.

8.03.040 Form of Admission Ticket.

8.03.050 Collection of Tax.

8.03.060 Remittance of Tax.

8.03.070 Books and Records.

8.03.080 Termination of Collector’s Business.

8.03.090 Procedure upon Failure to File Return.

8.03.100 Interest and Penalty.

8.03.120 Rules and Regulations.

8.03.125 Applications and Returns Confidential.

8.03.130 Failure to Remit.

8.03.140 Violation – Penalty.

8.03.150 Severability.

8.03.010 Tax Levied.

A tax is levied on every person paying an admission charge to any place or event, as follows:

A.  five percent of the admission charge to any motion picture theater or any other place or event; except

B.  two percent of the admission charge for participants at any golf course or miniature golf course;

C.  four percent of the admission charge to any golf driving range;

D.  three percent of the admission charge for participants at any skating rink or swimming pool.

[Ord. C32337 § 1; Passed: 1/19/1999]

8.03.020 Admission Tax Exemption.

A.  The admission tax is not imposed:

1.   when the admission charge, either for a single event or by prorating a season ticket or subscription price, is ten cents or less;

2.   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;

3.   where no admission charge or compensating payment is made;

4.   upon a person paying an admission charge to an activity or performance of a nonprofit arts organization furnishing evidence of tax-exempt status under the Internal Revenue Code section 501(c)(3); provided:

a.   This exemption applies only if the artistic performance or activity represents examples of the arts organizations primary purpose, whereas this exemption does not apply when the arts organization merely sponsors or promotes an attraction or professional engagement; and

b.   The City taxes and licenses office receives a properly completed application, including proof of tax-exempt status, for this exemption at least fifteen days prior to the event, unless waived;

5.   upon a person paying an admission charge to an activity or performance of a nonprofit organization furnishing evidence of tax-exempt status under the Internal Revenue Code section 501(c)(3); provided:

a.   For each nonprofit organization this exemption applies only to the first twenty thousand dollars of gross ticket sales generated from its event within each calendar year; and

b.   The city taxes and licenses office receives a properly completed application, including proof of tax-exempt status, for this exemption at least fifteen days prior to the event; and

c.   The city taxes and licenses office receives a properly completed tax return within three business days or other time set by the office, following an event, showing proof of gross ticket sales and other information requested by the office.

B.  This section is to be construed strictly against an exemption.

[Ord. C32337 § 2; Passed: 1/19/1999]

8.03.030 Definitions.

A.  “Admission charge” is the amount which must be paid as a condition to being admitted to a place or an event. It includes the charge made for season tickets or subscriptions. The cost of other benefits included with admission may not be deducted from the admission charge unless admission is specifically allowed without payment for said benefits.

B.  “Arts organization” as used in SMC 8.03.020(A)(4) means an organization whose principal function or purpose involves the promotion of the visual, literary, or performing arts as defined in SMC 4.05.070 and who produces or sponsors the following kinds of events: ballet and other dance, opera and other choral performances, concerts, plays and literary readings, and exhibitions of paintings, sculpture, photography, graphic or craft arts but not movies, circuses, ice or burlesque shows, sporting events or performances, shows, or exhibitions of any other type or nature.

C.  “Place” is any structure or enclosure, or portion thereof, used for amusement, entertainment, or enrichment. The term includes a theater, dance hall, amphitheater, auditorium, stadium, athletic pavilion or field, baseball or other athletic park, golf course or driving range, circus side show, outdoor amusement park, merry-go-round, ferris wheel, roller coaster, observation tower and similar attraction, and galleries, museums exhibition halls and other clubs, rooms and halls.

[Ord. C32337 § 3; Passed: 1/19/1999]

8.03.040 Form of Admission Ticket.

A.  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.

B.  All tickets sold must be consecutively numbered or reflect house seat locations to allow the City taxes and licenses office to verify the number of tickets sold.

[Ord. C28071; Passed: 8/5/1985]

8.03.050 Collection of Tax.

Every person receiving payment for admission is required to collect the amount of the admissions tax from the person making the admission payment and at the time the admission charge is paid.

[Ord. C25958 § 8.03.070]

8.03.060 Remittance of Tax.

A.  The tax collected under SMC 8.03.050 is 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.

B.  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 bimonthly, by the fifteenth day of the month next following the end of each bimonthly reporting period. The city treasurer prescribes the form and content of the tax returns. Whenever it appears that the collection of taxes due is in jeopardy, the auditor, after notice to the person collecting the tax, is authorized to require reporting and payment of taxes due at any interval other than bimonthly as the auditor shall deem appropriate under the circumstances.

C.  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 a temporary or transitory nature.

D.  Payment or remittance of the tax collected may be made by check, unless payment or remittance is otherwise required by the auditor, 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 in the full and correct amount.

E.  The auditor may, after 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. The auditor shall have such authority when he deems a trust account is necessary to insure payment of the taxes collected to the City.

[Ord. C32337 § 4; Passed: 1/19/1999]

8.03.070 Books and Records.

Every person required to collect the admissions 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.

[Ord. C25958 § 8.03.130]

8.03.080 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 becomes 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 becomes liable to the City for such tax.

[Ord. C25958 § 8.03.160]

8.03.090 Procedure upon Failure to File Return.

Should a person fail to file a required admissions tax return, the treasurer makes a determination of the amount of tax due from such person based on whatever information is available and notifies such person by mail of the amount of tax so determined, along with interest and penalties, and directs such person to remit such amount within ten days.

[Ord. C25958 § 8.03.140]

8.03.100 Interest and Penalty.

A.  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 per month.

B.  Should a person fail to pay the tax due within thirty days after it is due, said person shall become liable for a penalty of ten percent of the amount of the tax due, in addition to the interest provided for in subsection (A) of this section.

[Ord. C25958 § 8.03.150]

8.03.120 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.

[Ord. C25958 § 8.03.120]

8.03.125 Applications and Returns Confidential.

A.  The applications and returns made to the city treasurer pursuant to this chapter or any audit or investigation made by the city treasurer or his agents may not be made public, nor are they subject to the inspection of any person except as herein provided. This section does not prohibit the City or its agents from:

1.   giving such facts or information in evidence in any court action involving the tax imposed hereunder or involving a violation of this chapter;

2.   giving such facts and information to the person paying the tax or his duly authorized agent;

3.   publishing statistics so classified as to prevent the identification of particular returns and reports of items thereof; or

4.   permitting its records to be audited and examined by the proper state officer, his agents and employees.

B.  The City consents to the inspection of such records as necessary by the State Department of Revenue.

[Ord. C25958 § 8.03.170]

8.03.130 Failure to Remit.

Any person failing to timely remit any admissions tax payable to the City is personally liable for the amount of tax due and for interest and penalty as provided in SMC 8.03.100 and is also subject to penalty for civil infraction. 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.

[Ord. C31589; Passed: 3/25/1996]

8.03.140 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 misdemeanor.

[Ord. C31589; Passed: 3/25/1996]

8.03.150 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 is not affected.

[Ord. C25958 § 8.03.180]