H-4712.1 _______________________________________________
SUBSTITUTE HOUSE BILL 2543
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State of Washington 54th Legislature 1996 Regular Session
By House Committee on Commerce & Labor (originally sponsored by Representatives Cairnes, Sheldon, Cody, Thompson, Romero, Conway, Fuhrman, Radcliff, Chappell, Crouse, Mastin, Schoesler, Huff, Hymes, Wolfe, D. Schmidt, Morris, Grant, Kessler, Brown, Quall, Benton, Costa and Patterson)
Read first time 01/31/96.
AN ACT Relating to taxation of gambling activities; and amending RCW 9.46.110.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 9.46.110 and 1994 c 301 s 2 are each amended to read as follows:
The legislative
authority of any county, city-county, city, or town, by local law and
ordinance, and in accordance with the provisions of this chapter and rules and
regulations promulgated hereunder, may provide for the taxing of any gambling
activity authorized by this chapter within its jurisdiction, the tax receipts
to go to the county, city-county, city, or town so taxing the same: PROVIDED,
That any such tax imposed by a county alone shall not apply to any gambling
activity within a city or town located therein but the tax rate established by
a county, if any, shall constitute the tax rate throughout the unincorporated
areas of such county: PROVIDED FURTHER, That (1) punch boards and pull-tabs,
chances on which shall only be sold to adults, which shall have a ((fifty
cent)) one dollar limit on a single chance thereon, shall be taxed
on a basis which shall reflect only the gross receipts less the amount paid
for as prizes from such punch boards and pull-tabs; and (2) no punch board
or pull-tab may award as a prize upon a winning number or symbol being drawn
the opportunity of taking a chance upon any other punch board or pull-tab; and
(3) all prizes for punch boards and pull-tabs must be on display within the
immediate area of the premises wherein any such punch board or pull-tab is
located and upon a winning number or symbol being drawn, such prize must be
immediately removed therefrom, or such omission shall be deemed a fraud for the
purposes of this chapter; and (4) when any person shall win over twenty dollars
in money or merchandise from any punch board or pull-tab, every licensee
hereunder shall keep a public record thereof for at least ninety days
thereafter containing such information as the commission shall deem necessary:
AND PROVIDED FURTHER, That taxation of bingo and raffles shall never be in an
amount greater than ten percent of the gross revenue received therefrom less
the amount paid for or as prizes. Taxation of amusement games shall only be in
an amount sufficient to pay the actual costs of enforcement of the provisions
of this chapter by the county, city or town law enforcement agency and in no
event shall such taxation exceed two percent of the gross revenue therefrom
less the amount paid for as prizes: PROVIDED FURTHER, That no tax shall be
imposed under the authority of this chapter on bingo or amusement games when
such activities or any combination thereof are conducted by any bona fide
charitable or nonprofit organization as defined in this chapter, which
organization has no paid operating or management personnel and has gross income
from bingo or amusement games, or a combination thereof, not exceeding five
thousand dollars per year, less the amount paid for as prizes. No tax shall be
imposed on the first ten thousand dollars of net proceeds from raffles
conducted by any bona fide charitable or nonprofit organization as defined in
this chapter. Taxation of punch boards and pull-tabs shall not exceed ((five))
ten percent of gross receipts less the amount paid for as prizes,
nor shall taxation of social card games exceed ((twenty)) ten
percent of the gross revenue from such games less the amount paid for as
prizes, nor exceed ten percent of the gross revenue retained as winnings by the
licensed card room operator in the event they are authorized to participate as
the banker pursuant to RCW 9.46.0281.
Taxes imposed under this chapter become a lien upon personal and real property used in the gambling activity in the same manner as provided for under RCW 84.60.010. The lien shall attach on the date the tax becomes due and shall relate back and have priority against real and personal property to the same extent as ad valorem taxes.
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