(A) The city, which has one or more licensed organizations operating lawful gambling, imposes a local gambling tax on each organization within the city’s jurisdiction.
(B) This tax will be imposed only if the amount to be received by the city is necessary to cover the costs incurred by the city to regulate lawful gambling.
(C) At no time will a tax imposed pursuant to this chapter exceed 3% of the gross receipts of a licensed organization from all lawful gambling, unless prizes are actually paid out by the organization.
(D) The city may not use money collected pursuant to this chapter for any purpose other than for regulating lawful gambling within the city’s jurisdiction.
(E) Taxes imposed pursuant to this chapter are in lieu of all other local taxes and local investigation fees on lawful gambling.
(F) The city shall file an annual report, by March 15 of each year, in the event it imposes taxes pursuant to this chapter. This report shall be in a form prescribed by the Charitable Gambling Control Board, and shall include the amount of revenue produced by the tax during the preceding calendar year, and the use of the proceeds of the tax.
(G) Within 30 days of receiving a written request from the city, each organization conducting lawful gambling shall submit an annual report to the city. This annual report shall include gross receipts of that licensed organization from all lawful gambling, a detailed summary of all prizes actually paid out by each organization, and a detailed summary of the use of the proceeds from all lawful gambling by each organization.
(H) The following organizations’ receipts from lawful gambling are not subject to the taxes imposed by this chapter.
(1) Bingo may be conducted by an unlicensed organization without being subject to taxes imposed by this chapter if it is conducted:
(a) In connection with a county fair, the state fair, or a civic celebration if it is not conducted for more than 12 consecutive days in a calendar year;
(b) By an organization which conducts four or fewer bingo occasions in a calendar year; and/or
(c) Within a nursing home or senior citizen housing project, or by a senior citizen organization; and the prizes for a single bingo game do not exceed an amount as set by Council from time to time, total prizes awarded at a single bingo occasion do not exceed an amount as set by Council from time to time, no more than two bingo occasions are held by the organization or at the facility each week, only members of the organization or residents of the nursing home or housing project are allowed to play in a bingo game, no compensation is paid for any persons who conduct the bingo, and a manager is appointed to supervise the Gambling Control Board.
(2) Raffles may be conducted by an unlicensed organization without being subject to taxes imposed by this chapter if:
(a) The value of all raffle prizes awarded by the organization in a calendar year do not exceed an amount as set by Council from time to time; and/or
(b) The raffles are conducted by an organization which directly, or under contract to, the state or a political subdivision delivers health or social services, and which is exempt from taxation under I.R.C. § 501(c)(3), if the prizes awarded in the raffles are real or personal property donated by an individual, firm, or other organization.
(3) Lawful gambling may be conducted by an unlicensed organization without being subject to taxes imposed by this chapter if:
(a) The organization conducts lawful gambling on five or fewer days in a calendar year;
(b) The organization does not award more than an amount as set by Council from time to time in prizes for lawful gambling in a calendar year;
(c) The organization notifies the Charitable Gambling Control Board, in writing, not less than 30 days before each lawful gambling occasion of the date and location of the occasion, the types of lawful gambling to be conducted, the prizes to be awarded, and receives an exemption identification number;
(d) The organization notifies the city 30 days before the lawful gambling occasion;
(e) The organization purchases all gambling equipment and supplies from a licensed distributor; and/or
(f) The organization reports to the Charitable Gambling Control Board, on a single page form prescribed by the board, within 30 days of each gambling occasion, the gross receipts, prizes, expenses, and expenditures of net profits from the occasion, and the identification of the licensed distributor from whom all gambling equipment was purchased.
(Ord. 207, passed 10-2-2001)