SENATE BILL REPORT

                   SB 5581

                    As of February 10, 1997

Title:  An act relating to defining gross receipts from activities under chapter 9.46 RCW.

Brief Description:  Defining gross receipts for the purpose of chapter 9.46 RCW.

Sponsors:  Senators Schow and Heavey.

Brief History:

Committee Activity:  Commerce & Labor:  2/13/97.

SENATE COMMITTEE ON COMMERCE & LABOR

Staff:  Traci Ratzliff (786-7452)

Background:  Businesses that sell food and beverages and charitable and nonprofit organizations can be licensed to operate punch boards and pull-tabs.

Counties, cities, and towns are authorized to tax operators of punch boards and pull-tabs located within their jurisdictions.  Currently, a tax of up to 5 percent can be imposed on the gross receipts generated by such gambling activities.

Summary of Substitute Bill:  The practice of taxing punch boards and pull-tabs by local governments is modified.  Local governments may impose a tax of up to 5 percent on gross receipts less the amount awarded as prizes and the cost of the games.

Substitute Bill Compared to Original Bill:  The original bill was not considered.

Appropriation:  None.

Fiscal Note:  Requested on February 3, 1997.

Effective Date:  Ninety days after adjournment of session in which bill is passed.