§ 52-3.320. Fees.

(a)

Payments.

(1)

Each licensee, licensed pursuant to the provisions of this chapter, shall pay to the county thirteen and one-half percent of the total monthly gross revenue of the cardroom so licensed. Payment for any calendar month shall be made on or before the 15th day of the succeeding calendar month. "Gross revenue" means and includes the total amounts received from any and all revenue derived from cardroom activities licensed pursuant to this chapter and conducted on or within the premises.

(2)

For a licensee of an existing and operational cardroom in effect before December 30, 1995, the annual cardroom license fee paid to the county shall be limited to five hundred dollars per table. If a cardroom existing and operational before December 30, 1995 thereafter substantially enlarges cardroom operations, within county limits on cardrooms, by adding more than fifty percent additional tables or square footage to the cardroom activities area, and the sheriff determines that a substantial enlargement has occurred, the fees for cardrooms commencing on or after December 30, 1995 shall apply.

(b)

Deposit. In the case of a new applicant, a deposit for the first six months' license fee in the amount of sixty thousand dollars shall be paid in advance to the county upon issuance of the license. The sum of ten thousand dollars shall be credited each month against the payment due under subsection (a) of this section. The advance license fees shall become the absolute property of the county and shall not be refunded and shall not be prorated in any manner whatsoever, and in the event of the cessation of such cardroom, whether voluntary or involuntary, no refund of the advance fees shall be made.

(c)

Subsequent Payments. Following the first twelve months of operation, regardless of the total monthly gross revenue, the minimum monthly amount paid by licensee to the county shall be at least one hundred thousand dollars.

(d)

Tournaments. In the event any tournament is held at the cardroom, licensee shall pay to the county ten percent of the total entry fees in addition to the total monthly fee specified herein.

(e)

Noncardroom Business. For any noncardroom business operation owned by the licensee and on the premises, including, but not limited to, food and beverage service or rental of facilities, licensee shall pay to the county any and all applicable business license taxes pursuant to Section 64-14.202 et seq., as may be adjusted or amended.

(f)

Monthly Reports. Each licensee shall file with the county, before the 15th day of each calendar month, a reporting form under penalty of perjury and approved by the county showing the true and correct amount of gross revenue derived from the licensed cardroom for the preceding calendar month. Such statement shall be accompanied by payment of the correct amount of license fee due and owing in accordance with this section. Such sums correctly reflecting the fees payable for the preceding month shall be accepted by the county, subject, however, to the future right of the county to audit the matters referred to in any such statement and to determine the correctness of the figures and the amounts payable to the county pursuant to the provisions of subsections (g) and (h) of this section.

(g)

Accountant Review. Licensee shall arrange, at licensee's own expense, on an annual basis, for a certified public accountant approved by the county to audit the books, documents, records and accounts relating to the gross revenue of the licensee at the end of the licensee's fiscal year. The report of such accountant and all work papers utilized in the preparation of such audit shall be submitted to the county. The county shall review the report and work papers and may require any further information from the licensee. The county may submit such documents and information to a second certified public accountant for review. The expense of such second review shall be shared equally between the county and licensee.

(h)

Audits. In addition to the annual audit required in subsection (g) of this section, the books, records and accounts of any cardroom may be audited by the county at any time. Upon request of the county, the licensee shall provide to the county copies of licensee's tax returns, which shall be kept confidential and shall not be disclosed other than as necessary to carry out the purposes of this section. In the event a county-conducted audit discloses an underpayment to the county in excess of two percent in any one month, the full cost of the audit shall be borne by the licensee. Any information obtained pursuant to the provisions of this section or any statement filed by the licensee shall be deemed confidential and shall not be subject to public inspection unless otherwise required.

(i)

Failures. Any failure or refusal of licensee to timely make and file any required statements, or to pay any such fees when the same are due and payable in accordance with the provisions of this chapter, or to permit inspections of such books, records and accounts of such licensee, shall constitute full and sufficient grounds to revoke or suspend the license as provided in this chapter. Penalties for late payment shall be imposed as follows by the county: a twenty-five percent penalty for an annual license fee which is not paid within thirty days of the due date; and, any person who fails to pay any other license fee within thirty days of the due date shall pay interest at the rate of one and one-half percent per month, or fraction thereof, on the amount of the fees and penalties from the date on which the license fee is delinquent until paid.

(j)

Legal Remedies. The amount of any licensee fee, penalties and interest imposed by the provisions of this chapter shall be deemed a civil debt to the county. The county may pursue any legal remedies against licensee for the collection of any delinquent license fee, penalties, interest, liens, and all administrative costs incurred in connection therewith, including attorneys' fees.

(k)

No Refunds. Any and all fees paid by the applicant and/or licensee shall become the absolute property of the county and shall not be refunded to any such applicant and/or licensee whether or not such license is issued, and such fees shall not be prorated in any manner whatsoever, and in the event of the cessation of such cardroom, whether voluntary or involuntary, no refund of the advance fees shall be made whatsoever.

(l)

Different Rates. The board may specify a different rate for any of the fees imposed under this chapter if it finds that doing so is necessary to be competitive with other jurisdictions or to be consistent with current practices in other jurisdictions where cardrooms operate.

(m)

Except as otherwise provided, the provisions in this section shall be administered by the county department designated by the county administrator.

(n)

Notwithstanding any other provision of this chapter and except subsections (a)(2), (e), (i), (j), (l) and (m), this section does not apply, even upon a transfer or renewal of a license, to a licensed cardroom existing and operational before December 30, 1995, unless the cardroom's operations are substantially enlarged on or after December 30, 1995.

(Ords. 98-28, 95-61, 82-62 § 1, 82-44, 76-67 § 2, 1779, 1506, 1464: § 52-2.616, § 52-2.618(a): prior code § 5205.5, 5206).