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SUBSTITUTE
SENATE BILL 5745
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Passed
Legislature - 1999 Regular Session
State of Washington 56th
Legislature 1999 Regular Session
By
Read first time 03/03/1999.
Reducing
the tax on bingo and raffles.
AN
ACT Relating to reducing the tax on bingo and raffles; amending RCW 9.46.110;
and providing an effective date.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
9.46.110 and 1997 c 394 s 4 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 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 activity. Any
such tax imposed by a county alone shall not apply to any gambling activity
within a city or town located 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.
(2)
The operation of punch boards and pull-tabs are subject to the following
conditions:
(a)
Chances may only be sold to adults;
(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;
(d)
All prizes 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
in which any such punch board or pull-tab is located. Upon a winning number or
symbol being drawn, a merchandise prize must be immediately removed 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
(e)
When any person wins money or merchandise from any punch board or pull-tab over
an amount determined by the commission, every licensee shall keep a public
record of the award for at least ninety days containing such information as the
commission shall deem necessary.
(3)(a)
Taxation of bingo and raffles shall never be in an amount greater than ((ten))
five percent of the gross receipts from a bingo game or raffle less the
amount 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 receipts from the amusement game less the amount awarded
as prizes.
(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 receipts from bingo or amusement games, or a combination thereof, not
exceeding five thousand dollars per year, less the amount awarded as cash or
merchandise prizes.
(d)
No tax shall be imposed on the first ten thousand dollars of 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 for bona fide charitable or nonprofit
organizations is based on gross receipts from the operation of the games less
the amount awarded as cash or merchandise prizes, and shall not exceed a rate
of ten percent. At the option of the county, city-county, city, or town, the
taxation of punch boards and pull-tabs for commercial stimulant operators may
be based on gross receipts from the operation of the games, and may not exceed
a rate of five percent, or may be based on gross receipts from the operation of
the games less the amount awarded as cash or merchandise prizes, and may not
exceed a rate of ten percent.
(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.
NEW SECTION. Sec. 2. This
act takes effect January 1, 2000.
