S-1134               _______________________________________________

                                                   SENATE BILL NO. 5527

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Senators Vognild, Nelson, Moore and Warnke

Read first time 2/3/87 and referred to Committee on Commerce & Labor.

AN ACT Relating to taxation of gambling activities; amending RCW 9.46.113; and reenacting and amending RCW 9.46.110.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 11, chapter 218, Laws of 1973 1st ex. sess. as last amended by section 1, chapter 172, Laws of 1985 and by section 2, chapter 468, Laws of 1985 and RCW 9.46.110 are each reenacted and 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 in RCW 9.46.030 as now or hereafter amended 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 limit on a single chance thereon, shall be taxed on a basis which shall reflect only the net gross receipts 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)) seven and one-half 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, raffles or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in RCW 9.46.020(3), which organization has no paid operating or management personnel and has gross income from bingo, raffles or amusement games, or any combination thereof, not exceeding five thousand dollars per year less the amount paid for as prizes.  Taxation of punch boards and pull-tabs shall not exceed ((five)) seven and one-half percent of gross receipts less the cost of prizes or cash awarded, nor shall taxation of social card games exceed ((twenty percent)) seven and one-half of the net gross revenue from such games.

        Sec. 2.  Section 11, chapter 166, Laws of 1975 1st ex. sess. and RCW 9.46.113 are each amended to read as follows:

          Any county, city or town which collects a tax on gambling activities authorized pursuant to RCW 9.46.110 shall use the revenue from such tax ((primarily)) for the purpose of ((enforcement of the provisions of this chapter by)) the county, city or town law enforcement agency.