Chapter 8.13
Fundraising Tax

Sections:

8.13.010 Tax Levied.

8.13.020 Definitions.

8.13.030 Pre-Registration.

8.13.040 Time of Payment.

8.13.050 Tender of Payment.

8.13.060 Books and Records.

8.13.070 Interest.

8.13.080 Penalty.

8.13.090 Failure to File Return or Produce Records.

8.13.100 Procedure upon Overpayment.

8.13.110 Rules and Regulations.

8.13.120 Extension of Time.

8.13.130 Chapter Cumulative.

8.13.010 Tax Levied.

There is levied upon every bona fide charitable or nonprofit organization a tax of ten percent of the net proceeds of every fundraising event conducted within the city.

[Ord. C24723 § 2]

8.13.020 Definitions.

A.  “Bona fide charitable” or “nonprofit organization” is an organization so defined in RCW 9.46.020.

B.  “Fundraising event” is a fundraising event, as defined in RCW 9.46.0233, conducted by a bona fide charitable or nonprofit organization, not including bingo games and raffles taxed under SMC 8.04.020.

C.  “Net proceeds” means gross revenue less:

1.   cash paid out for prizes; and

2.   the amount paid for merchandise prizes.

[Ord. C24723 §§ 1, 2]

8.13.030 Pre-Registration.

Any organization proposing to conduct a fundraising event is required to file with the city auditor a declaration of intent, prior to commencement of the event.

[Ord. C24723 § 6]

8.13.040 Time of Payment.

The tax imposed by this chapter is due and payable within ten days after the last day of the fundraising event.

[Ord. C24723 § 3]

8.13.050 Tender of Payment.

A.  Every organization subject to tax under this chapter is required to make timely remittance by a return on forms prescribed by the city auditor.

B.  The tax is paid to the city treasurer by bank draft, certified check, cashier’s check, check, money order, or cash. If the payment is not in cash, the tax is not deemed paid unless the draft or check is honored in the usual course of business.

C.  Acceptance of a tender of payment by the treasurer does not discharge the tax liability unless the payment is for the full amount then due.

[Ord. C24723 §§ 3, 4]

8.13.060 Books and Records.

A.  Every organization conducting an event subject to tax under this chapter is required to keep and maintain for two years such books and records as will accurately reflect sums received which are taxable under this chapter. Such books and records are subject to inspection and audit by the city auditor or a designee at all reasonable times with or without notice for the purpose of determining compliance with the requirements of this chapter.

B.  If the taxpayer does not maintain its books and records in Spokane, it may satisfy the requirement of this section by either producing the records in the city as instructed by the auditor or by advancing the costs of examination at the place where the books and records are kept. In this latter event, the taxpayer advances to the auditor the estimated expenses of transportation, lodging, meals and incidentals, and further payment or refund is made upon completion of the examination based on actual cost.

[Ord. C24723 § 7]

8.13.070 Interest.

Whenever the tax is not paid in full when due, interest is charged at the rate of one-half of one percent of the amount due, per month or portion of a month from the date payment was due until paid.

[Ord. C24723 § 5]

8.13.080 Penalty.

In addition to interest, whenever the tax is not paid in full when due, the taxpayer is required to pay a penalty of:

A.  ten percent of the amount due or one dollar, whichever is greater, if the payment is from one to thirty days late;

B.  fifteen percent of the amount due or two dollars, whichever is greater, if the payment is from thirty-one to sixty days late;

C.  twenty percent of the amount due or three dollars, whichever is greater, if the payment is more than sixty days late.

[Ord. C24723 § 5]

8.13.090 Failure to File Return or Produce Records.

A.  Whenever an organization fails either to file a return or to produce the books and records required by this chapter, the auditor nevertheless determines tax liability from whatever information is available. The auditor by letter notifies the organization of the amount so determined to be due and thereupon the organization is required to remit that amount.

B.  Payment under this section does not excuse the organization from full compliance with the requirements of this chapter or relieve it from liability for noncompliance.

[Ord. C24723 §§ 7, 10]

8.13.100 Procedure upon Overpayment.

A.  Should the city auditor determine that a tax payment has been made within the preceding two years in excess of the amount due, the excess will be credited to the taxpayer’s account or refunded, at the taxpayer’s option. Interest is added to the credit or refund at the rate of three percent per annum.

B.  After two years, any overpayment of tax is not credited or refunded.

[Ord. C24723 § 9]

8.13.110 Rules and Regulations.

The city auditor is authorized to make and promulgate rules and regulations for the administration of this chapter.

[Ord. C24723 § 13]

8.13.120 Extension of Time.

For good cause shown, the auditor may extend a time for filing a return or paying the tax but in no case can interest be waived.

[Ord. C24723 § 15]

8.13.130 Chapter Cumulative.

The tax imposed by this chapter is in addition to, and not in lieu of, any other tax or license fee imposed by this code.

[Ord. C24723 § 12]