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.
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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