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City of Cleveland Codified Ordinances, Chapter #199
PART ONE — ADMINISTRATIVE CODETitle XVII — TaxationChapter 199 — Tax on Coin Operated Amusement DevicesComplete to June 30, 2007
Note: Pursuant to Section 1 of Ordinance No. 518-91, Sections 199.01 through 199.16 and Section 199.99 took effect on April 1, 1991.
When used in this chapter the following terms shall mean or include:
(a) "City" means the City of Cleveland, Ohio.
(b) "Coin operated amusement devices" means any machine, contrivance, apparatus, booth or other device which is operated, played, or permitted to function by the insertion or deposit of any coin, currency, slug, token or thing of value, and which provides amusement, diversion or entertainment.
(c) "Commissioner" means the Commissioner of Assessments and Licenses of the City of Cleveland.
(d) "Digger device" means any coin operated amusement device where, by the use of a crane, scoop, lever or other method, the player attempts to obtain a prize or other thing of value.
(e) "Division" means the Division of Assessments and Licenses of the City of Cleveland.
(f) "Game" means any coin operated amusement device whereby the player tests his skill or strength or chance, or competes against himself or other persons, including but not limited to pinball machines; video ball machines or other electronic video games; machines whereby one tests one's driving, racing, flying, shooting or other skills; rifles and other devices for shooting at targets; skeeball; bowling games; poker roll; pokerino and similar games; pool or billiard games; and shuffleboard. The foregoing enumeration is illustrative and is not intended to in any way limit the kind of game within this definition.
(g) "Juke box or similar musical device" means any coin operated amusement device designed primarily to provide recorded music by electrical or mechanical means, or which, by such means, provides music, whether or not a portion of the device is on or off the premises where the music is heard and whether or not somebody starts the operation of the device after the coin, slug, token or thing of value is inserted in the device.
(h) "Live viewing booth" means any coin operated amusement device to which the public may gain admittance wherein a live performance is presented to five (5) or fewer persons at one time.
(i) "Maintain" means to permit or authorize the placing or keeping of a coin operated amusement device on the premises of another person or on one's own premises where it will be available for use or operation.
(j) "Owner" means any person who owns a coin operated amusement device.
(k) "Person" means an individual, partnership, society, association, joint-stock company, corporation, estate, receiver, lessee, trustee, assignee, referee, or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals.
(l) "Picture arcade" means any coin operated amusement device to which the public may gain admittance wherein still or motion picture machines or projectors or video monitors are operated or maintained for the purpose of showing still or motion pictures or videos to five (5) or fewer persons per machine, projector or monitor at one time.
(m) "Return" means any return required to be filed as provided in this chapter.
(n) "Tax" means the tax imposed pursuant to this chapter, which shall be known as the "coin operated amusement device tax".
(o) "Tax year" means April first of any calendar year through March thirty-first of the following calendar year.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
(a) For the privilege of maintaining coin operated amusement devices, including but not limited to games of every kind, digger devices, juke boxes or similar musical devices, live viewing booths and picture arcades, whether manually, mechanically, electrically or otherwise operated, within the City during each tax year, or any part thereof, every owner shall pay a tax for each such coin operated amusement device in the amount of thirty dollars ($30.00).
(b) This tax is imposed for the purpose of providing funds for general municipal operations, procurement of fixed assets or permanent improvements, payment of debt charges, the elimination of deficits in City funds and for all other lawful purposes.
(c) A person who allows an owner to maintain a coin operated amusement device which is subject to this tax on premises owned or occupied by such person shall, where such device does not bear the required stamp or other indicia prescribed by the Commissioner to show payment of the tax, be treated as and deemed an owner of the device, and shall be subject to the tax.
(d) If the first maintenance within the City of any coin operated amusement device subject to tax under this chapter occurs on or after November first and before January first in any tax year, the tax for that tax year shall be one-half of the tax hereinabove provided, and, if the first such maintenance occurs on or after January first in any tax year, the tax for that tax year shall be one-fourth of the tax hereinabove provided. For the purpose of this division the first maintenance within the City of a replaced device, on which the tax was paid prior to its replacement, shall be deemed to be the first such maintenance of the device after its replacement.
(e) Where a coin operated amusement device, with respect to which the tax has been paid, is replaced by another similar device, no additional tax shall be payable with respect to the replacement device during the period for which the tax has been paid. However, the tax shall be payable with respect to the replaced device if it is subsequently maintained within the City. Where the tax has been paid with respect to a device which has not been so replaced, a change of location, or of ownership, of such device shall not subject it to additional tax, provided returns are filed as required by division (a) of Section 199.05 of this chapter.
(f) The tax shall not apply to a coin operated amusement device when it is kept or displayed solely for purposes of sale, kept in a storage warehouse or kept in premises which are not open for business.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
Note: Pursuant to Section 1 of Ordinance No. 518-91, Section 199.02 took effect on April 1, 1991.
The tax imposed by this chapter shall not apply to the following:
(a) The state of Ohio, or any of its agencies, instrumentalities, public corporations (including a public corporation created pursuant to agreement or compact with another state or Canada) or political subdivisions.
(b) The United States of America, and any of its agencies and instrumentalities, insofar as they are immune from taxation.
(c) Any corporation, or association, or trust, or community chest, fund or foundation, organized and operated exclusively for religious, charitable, or educational purposes, or for the prevention of cruelty to children or animals, and no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation; provided, however, that nothing in this division shall include an organization operated for the primary purpose of carrying on a trade or business for profit, whether or not all of its profits are payable to one or more organizations described in this division; and
(d) Nothing in this section shall exempt from tax under this chapter any owner of a coin operated amusement device subject to tax under this chapter despite the fact that it is maintained on premises occupied by a person exempted from tax by this section or that any such exempt person is entitled to any part of the proceeds from the device.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
Every owner of a coin operated amusement device taxable under this chapter shall keep such records of such owner's business and in such form as the Commissioner may by regulation require. Such records shall be offered for inspection and examination at any time upon demand by the Commissioner, or the Commissioner's duly authorized agent or employee, and shall be preserved for a period of three (3) years, except that the Commissioner may consent to their destruction within that period or may require that they be kept longer.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
(a) On or before the twentieth day of April in each year, every owner of a coin operated amusement device taxable under this chapter shall file a return with the Commissioner, on a form prescribed by the Commissioner, showing the number and type of any coin operated amusement devices subject to tax under this chapter owned and/or being maintained by such person, and such other information as the Commissioner may require. The Commissioner may provide by regulation that returns be filed at other times, and upon such dates as the Commissioner may specify, and may provide that a return be filed within a stated time after any such device is replaced, or moved from the premises where it has been located, or after any change in the ownership of such device.
(b) If a return required by this section is not filed, or if a return when filed is incorrect or insufficient on its face, the Commissioner shall take the necessary steps to enforce the filing of such a return or of a corrected return.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
At the time of filing a return the owner shall pay to the Commissioner the tax imposed hereunder. Such tax shall be due and payable on the last day on which such return is required to be filed, regardless of whether a return is filed or whether the return which is filed correctly indicates the amount of tax due.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
The payment of the tax imposed by this chapter shall be evidenced by a suitable stamp or other indicia of payment in a form prescribed by the Commissioner and every owner shall place and keep conspicuously posted on the device the stamps or other indicia denoting payment of the tax for the current year.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
If a return required by this chapter is not filed, or if a return when filed is incorrect or insufficient, the Commissioner shall determine the amount of tax due from such information as may be obtainable and, if necessary, may estimate the tax on the basis of external indices. Notice of such determination shall be given to the person liable for the payment of the tax. Such determination shall finally and irrevocably fix the tax unless the person against whom it is assessed, within thirty days after the giving of notice of such determination, shall apply in writing to the Commissioner for a hearing or unless the Commissioner on his or her own motion shall redetermine the same. After such hearing the Commissioner shall give notice of the Commissioner's determination to the person against whom the tax is assessed.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
(a) In the manner provided in this section, the Commissioner shall refund or credit, without interest, any tax, penalty or interest erroneously, illegally or unconstitutionally collected or paid, if written application to the Commissioner for such refund shall be made within one year from the payment thereof. Whenever a refund or credit is made, the Commissioner shall state his or her reason therefor in writing. The Commissioner may, in lieu of any refund required to be made, allow credit therefor on payments due from the applicant.
(b) An application for a refund or credit made as herein provided shall be deemed an application for a revision of any tax, penalty or interest complained of and the Commissioner may receive evidence with respect thereto. After making his or her determination, the Commissioner shall give notice thereof to the applicant.
(c) A person shall not be entitled to a revision, refund or credit under this section of a tax, interest or penalty which had been determined to be due pursuant to the provisions of Section 199.08 of this chapter where such person has had a hearing or an opportunity for a hearing, as provided in said section, or has failed to avail himself or herself of the remedies therein provided.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
Appeals from any ruling of the Commissioner hereunder shall be made to the Board of Appeals established pursuant to Charter Section 76-6 in the same manner as other appeals to the Board. The Board shall have authority to annul, modify or affirm any such ruling appealed from, in conformity with the intent and purpose of this chapter.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
Whenever any person shall fail to pay any tax, or penalty or interest imposed by this chapter as herein provided, the Director of Law shall, upon the request of the Commissioner, bring or cause to be brought an action to enforce payment of the same against the person liable for the same on behalf of the City in the appropriate court of the state of Ohio or of any other state or of the United States.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
In addition to all other powers granted to the Commissioner in this chapter, the Commissioner is hereby authorized and empowered:
(a) To make, adopt and amend rules and regulations appropriate to the carrying out of this chapter and the purposes thereof, and to prescribe the form of blanks, reports and other records relating to the enforcement and administration of this chapter;
(b) To extend, for cause shown, the time for filing any return for a period not exceeding sixty (60) days;
(c) To delegate the Commissioner's functions hereunder to any employee or employees of the Division; and
(d) To assess, reassess, determine, revise and readjust the taxes imposed under this chapter.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
(a) Interest on underpayments. If any amount of tax is not paid on or before the last date prescribed for payment (without regard to any extension of time granted for payment), interest on such amount at the rate of one and one half percent (1.5%) per month, shall be paid for the period from such last date to the date of payment. In computing the amount of interest to be paid, such interest shall be compounded daily. Interest under this division shall not be paid if the amount thereof is less than one dollar ($1).
(b)(1) Failure to file return.
A. In case of failure to file a return under this chapter on or before the prescribed date (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return five percent (5%) of the amount of such tax if the failure is for not more than one month, with an additional five percent (5%) for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent (25%) in the aggregate.
B. In the case of a failure to file a return of tax within sixty (60) days of the date prescribed for filing of such return (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax under division (b)(1)A. of this section shall not be less than the lesser of one hundred dollars ($100.00) or one hundred percent (100%) of the amount required to be shown as tax on such return.
C. For the purposes of this division (b)(1), the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return.
(2) Failure to pay tax shown on return. In case of failure to pay the amount shown as tax on a return required to be filed under this chapter on or before the prescribed date (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause and not due to a willful neglect, there shall be added to the amount shown as tax on such return one-half of one percent (.5%) of the amount of such tax if the failure is not for more than one month, with an additional one-half of one percent (.5%) for each additional month or fraction thereof during which such failure continues. For the purpose of computing the additions for any month the amount of tax shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the beginning of such month and by the amount of any credit against the tax which may be claimed upon the return. If the amount of tax required to be shown on a return is less than the amount shown as tax on such return, this division (b)(2) shall be applied by substituting such lower amount.
(3) Failure to pay tax required to be shown on return. In case of failure to pay any amount in respect of any tax required to be shown on a return required to be filed under this chapter which is not so shown (including a determination made pursuant to Section 199.08 of this chapter) within ten (10) days of the date of a notice and demand therefor, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of tax stated in such notice and demand one-half of one percent (.5%) of such tax if the failure is not for more than one month, with an additional one-half of one percent (.5%) for each additional month or fraction thereof during which such failure continues. For the purpose of computing the addition for any month, the amount of tax stated in the notice and demand shall be reduced by the amount of any part of the tax which is paid before the beginning of such month.
(4) Limitations on additions.
A. With respect to any return, the amount of the addition under division (b)(1) of this section shall be reduced by the amount of the addition under division (b)(2) of this section for any month to which an addition applies under both division (b)(1) and (b)(2). In any case described in division (b)(1)B. of this section, the amount of the addition under such division (b)(1) shall not be reduced below the amount provided in such division (b)(1)B.
B. With respect to any return, the maximum amount of the addition permitted under division (b)(3) of this section shall be reduced by the amount of the addition under division (b)(2) of this section (determined without regard to division (b)(1)B.) which is attributable to the tax for which the notice and demand is made and which is not paid within ten (10) days of such notice and demand.
(c) Underpayment due to negligence. If any part of an underpayment of tax is due to negligence or intentional disregard of this chapter or any rules or regulations hereunder (but without intent to defraud), there shall be added to the tax a penalty equal to five percent (5%) of the underpayment.
(d) Underpayment due to fraud. If any part of an underpayment of tax is due to fraud, there shall be added to the tax a penalty equal to fifty percent (50%) of the underpayment.
(e) The interest and penalties imposed by this section shall be paid and disposed of in the same manner as other revenues from this chapter. Unpaid interest and penalties may be enforced in the same manner as the tax imposed by this chapter.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
Except in accordance with proper judicial order, or as otherwise provided by law, it shall be unlawful for the Commissioner or any officer or employee of the City to divulge or make known in any manner any information relating to the business of a taxpayer contained in any return required under this chapter. The officers charged with the custody of such returns shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the Commissioner in an action or proceeding under the provisions of this chapter, or on behalf of any party to any action or proceeding under the provisions of this chapter when the returns or facts shown thereby are directly involved in such action or proceeding, in either of which events the court may require the production of, and may admit in evidence so much of said returns or of facts shown thereby, as are pertinent to the action or proceeding and no more. Nothing herein shall be construed to prohibit the delivery to a taxpayer or the taxpayer's duly authorized representative of a certified copy of any return filed in connection with his or her tax nor to prohibit the publication of statistics so classified as to prevent the identification of particular returns and the items thereof, or the inspection by the Director of Law or other legal representatives of the City, of the return of any taxpayer who shall bring action to set aside or review the tax based thereon, or against whom an action or proceeding under this chapter may be instituted. Returns shall be preserved for three (3) years and thereafter until the Commissioner permits them to be destroyed.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
Any notice authorized or required under the provisions of this chapter may be given by mailing the same to the person for whom it is intended in a postpaid envelope addressed to such person at the address given in the last return filed by such person pursuant to the provisions of this chapter or in any application made by such person, or, if no return has been filed or application made, then to such address as may be obtainable. The mailing of such notice shall be presumptive evidence of the receipt of the same by the person to whom addressed. Any period of time which is determined according to the provisions of this chapter by the giving of notice shall commence to run from the date of mailing of such notice.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
All revenues resulting from the imposition of the tax under this chapter shall be paid into the treasury of the City and shall be credited to and deposited in the general fund of the City.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
(a) Whoever, being a person charged by this chapter with the duty of paying the taxes imposed by this chapter, willfully fails or refuses to charge and collect or to pay such taxes, or to make return to the Commissioner as required by this chapter, or to permit the Commissioner or his duly authorized agent, to examine his books and other records in or upon any premises where the same are kept, to the extent necessary to verify any return made or to ascertain and assess the tax imposed by this chapter if no return was made, or to maintain and keep such returns and records for three (3) years or such lesser or greater time as may be permitted or required by the Commissioner, shall be fined not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100.00), and for a second or other subsequent offense shall, if a corporation, be fined not less than one hundred dollars ($100.00) nor more than five hundred dollars ($500.00), or, if an individual or member of a partnership, firm or association, be fined not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100.00) or imprisoned not more than sixty (60) days, or both.
(b) Whoever violates Section 199.14 shall be fined not more than five hundred dollars ($500.00) or imprisoned not more than thirty (30) days, or both, for each violation, and shall thereafter be disqualified from acting in any official capacity in connection with the assessment or collection of taxes under this chapter.
(Ord. No. 518-91. Passed 6-17-91, eff. 6-20-91)
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