H-0745.2  _______________________________________________

 

                          HOUSE BILL 1404

          _______________________________________________

 

State of Washington      55th Legislature     1997 Regular Session

 

By Representatives McMorris, Honeyford, Robertson, Ballasiotes, Conway, Wood, Cole, Boldt and Delvin

 

Read first time 01/24/97.  Referred to Committee on Commerce & Labor.

 

Revising provisions for punch boards and pull-tabs.



    AN ACT Relating to punch boards and pull-tabs; 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:

    (1) 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)) adopted under this chapter, 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)) activity.  Any such tax imposed by a county alone shall not apply to any gambling activity within a city or town located ((therein)) in the county 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)).

    (2) The operation of punch boards and pull-tabs are subject to the following conditions:

    (a) Chances may only be sold to adults((, which shall have a fifty cent limit on a single chance thereon, shall be taxed on a basis which shall reflect only the gross receipts from such punch boards and pull-tabs; and (2)));

    (b) The price of a single chance may not exceed one dollar;

    (c) No punch board or pull-tab license 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)))

    (d) All prizes ((for punch boards and pull-tabs)) available to be won must be described on an information flare.  All merchandise prizes must be on display within the immediate area of the premises ((wherein)) in which any such punch board or pull-tab is located ((and)).  Upon a winning number or symbol being drawn, ((such)) a merchandise prize must be immediately removed ((therefrom)) from the display and awarded to the winner.  All references to cash or merchandise prizes, with a value over twenty dollars, must be removed immediately from the information flare when won, or such omission shall be deemed a fraud for the purposes of this chapter; and (((4)))

    (e) When any person ((shall win over twenty dollars in)) wins money or merchandise from any punch board or pull-tab over an amount determined by the commission, every licensee ((hereunder)) shall keep a public record ((thereof)) of the award for at least ninety days ((thereafter)) containing such information as the commission shall deem necessary((:  AND PROVIDED FURTHER, That)).

    (3)(a) Taxation of bingo and raffles shall never be in an amount greater than ten percent of the gross ((revenue received therefrom)) receipts from a bingo game or raffle less the amount ((paid for or)) awarded as cash or merchandise prizes.

    (b) 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)) receipts from the amusement game less the amount ((paid for)) awarded as prizes((:  PROVIDED FURTHER, That)).

    (c) 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)) receipts from bingo or amusement games, or a combination thereof, not exceeding five thousand dollars per year, less the amount ((paid for)) awarded as cash or merchandise prizes.

    (d) No tax shall be imposed on the first ten thousand dollars of ((net proceeds)) gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by any bona fide charitable or nonprofit organization as defined in this chapter.

    (e) Taxation of punch boards and pull-tabs is based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes, and shall not exceed ((five)) a rate of ten percent ((of gross receipts, nor shall)) for bona fide charitable or nonprofit organizations, nor fifteen percent for commercial stimulant operators.

    (f) Taxation of social card games may not exceed twenty percent of the gross revenue from such games.

    (4) 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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