Chapter 3.98
GAMBLING TAX CODE1
Sections:
3.98.010 Exercise of revenue license power.
3.98.020 General administrative provisions apply.
3.98.040 Persons subject to tax – Tax rates.
3.98.070 Rules and regulations.
3.98.010 Exercise of revenue license power.
The provisions of this chapter constitute an exercise of the power of the city to license for revenue and to tax certain gambling activities pursuant to Chapter 9.46 RCW. (Ord. 17-06 § 1, 2006; Ord. 02-05 § 1, 2005).
3.98.020 General administrative provisions apply.
The provisions of Chapter 3.10 BMC, the tax administration code, shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 17-06 § 1, 2006; Ord. 02-05 § 1, 2005).
3.98.030 Definitions.
The definitions set forth in Chapter 3.10 BMC shall apply throughout this chapter, unless expressly provided otherwise herein. The following additional definitions shall apply throughout this chapter:
(1) “Amusement game” means a game played for entertainment in which the contestant actively participates, the outcome depends in a material degree upon the skill of the contestant and meets the requirements of Chapter 9.46 RCW, as it may be amended or replaced from time to time.
(2) “Bingo” means a game in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random and which meets the requirements of RCW 9.46.0205, as it may be amended or replaced from time to time.
(3) “Bona fide charitable or nonprofit organization” shall have the meaning set forth in RCW 9.46.0209, as it may be amended or replaced from time to time.
(4) “Chapter” means this chapter, as it may be amended or replaced from time to time.
(5) “Commercial stimulant,” as used in this chapter, means an activity operated as a commercial stimulant, for the purposes of this chapter, only when it is an activity operated in connection with an established business, with the purpose of increasing the volume of sales of food or drink for consumption on that business premises. (RCW 9.46.02017.)
(6) “Director” means the finance director of the city of Buckley or his/her duly authorized designee.
(7) “Gross gambling receipts” means the monetary value, stated in U.S. currency, due to any operator of a gambling activity for purchase of a chance to play a punchboard or pull-tab series; purchase of a chance to enter a raffle; fees or purchase of cards to participate in bingo games; fees for participation in an amusement game, including rent or lease payments paid to licensees or franchisers for allowing operation of an amusement game on their premises; and any fee to participate in, or net win from, any card games or fundraising events as defined in WAC 230-02-109. The value shall be before any deductions for prizes or other expenses.
Fees from players for entry into a player-supported jackpot held in conjunction with card games are not gross gambling receipts; provided, that any portion of wagers deducted for any purpose other than increasing current prizes or repayment of amounts used to seed such prizes shall be treated as gross gambling receipts.
(8) “Net gambling receipts” means all gross gambling receipts from any gambling activity, less the monetary value or, in the case of merchandise, the actual cost of any prizes that were awarded.
(9) “Net win” means gross wagers received by a licensee from the operation of house-banked card games or fundraising events, less the amount paid to players for winning wagers, accrual of prizes for progressive jackpot contests, and repayment of amounts used to seed guaranteed progressive jackpot prizes.
(10) “Public card room” is that area of the premises of a profit-seeking retail business which has been specifically set aside or designated by the licensee and approved by the commission for the playing of cards by members of the public as a commercial stimulant to that business in accordance with state law and the rules of the commission.
(11) “Punchboard” means a board with many holes filled with rolled-up printed slips to be punched out on payment of a nominal sum in an effort to obtain a slip that entitles the player to a designated prize or meets the requirements of RCW 9.46.0273, as it may be amended or replaced from time to time.
(12) “Pull-tabs” means a game in which the participant, on payment of a nominal sum, receives a paper tab from a dispenser which is pulled apart to reveal a designated prize or meets the requirements of RCW 9.46.0273, as it may be amended or replaced from time to time.
(13) “Raffle” means a game in which tickets bearing an individual number are sold for not more than $5.00 each and in which a prize or prizes are awarded on the basis of a drawing from the tickets and which meets the requirements of RCW 9.46.0277, as it may be amended or replaced from time to time.
(14) “Social card game” as used in this chapter means a card game that constitutes gambling and is authorized under RCW 9.46.070. Authorized card games may include a house-banked or a player-funded banked card game. No one may participate in the card game or have an interest in the proceeds of the card game who is not a player or a person licensed by the commission to participate in social card games. There shall be two or more participants in the card game who are players or persons licensed by the commission. The card game must be played in accordance with the rules under RCW 9.46.070, which shall include but not be limited to rules for the collection of fees, limitation of wagers, and management of player funds. The number of tables authorized shall be set by the gambling commission but shall not exceed a total of 15 separate tables per establishment. (Ord. 17-06 § 1, 2006; Ord. 02-05 § 1, 2005).
3.98.040 Persons subject to tax – Tax rates.
There is levied upon all persons, associations, and organizations conducting or operating within this jurisdiction any of the activities listed below, a tax in the following amount to be paid to the city:
(1) Bingo, in the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise which are actually awarded as prizes during the taxable period, multiplied by the rate of five percent;
(2) Raffles, in the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise which are actually awarded as prizes during the taxable period, multiplied by the rate of five percent;
(3) Amusement games, in the amount sufficient to pay the actual costs of enforcement of the provisions of this chapter, which shall not exceed the amount of the gross receipts therefrom, less the amount of money paid in cash and amounts paid for merchandise which are actually awarded as prizes during the taxable period, multiplied by the rate of two percent;
(4) Charitable Organizations.
(a) No tax shall be imposed under the authority of this chapter on bingo, raffles or amusement games when such activities or any combination thereof is conducted by any bona fide charitable or nonprofit organization, as defined in Chapter 9.46 RCW, which organization has not paid operating or management personnel and has gross income from bingo, raffles or amusement games, or any combination thereof, not exceeding $5,000 per year less the amount awarded as cash or merchandise prizes;
(b) No tax shall be imposed on the first $10,000 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 Chapter 9.46 RCW;
(5) Any punchboards or pull-tabs, any organization qualifying as a bona fide charitable or nonprofit organization pursuant to the provisions of Chapter 9.46 RCW and any person, association or organization who desires to utilize punchboards or pull-tabs as a commercial stimulant pursuant to Chapter 9.46 RCW shall make such intention known to the director;
(a) Any organization pursuant to the provisions of Chapter 9.46 RCW and any person, association or organization who desires to utilize punchboards or pull-tabs as a commercial stimulant pursuant to Chapter 9.46 RCW shall remit to the city of Buckley and there is hereby levied an excise or tax computed at the rate of five percent based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes. Gross income received in the conduct of such activity is computed by multiplying the number of chances played on said board or pull-tab times the price or value of each individual chance or play. Cash or merchandise awarded is computed by the amount of cash paid or cost of merchandise awarded;
(b) Any organization qualifying as a bona fide charitable or nonprofit organization pursuant to the provisions of Chapter 9.46 RCW, who desires to utilize punchboards or pull-tabs pursuant to Chapter 9.46 RCW, shall remit to the city of Buckley and there is hereby levied an excise or tax computed at the rate of five percent based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes. Gross income received in the conduct of such activity is computed by multiplying the number of chances played on said board or pull-tab times the price or value of each individual chance or play. Cash or merchandise awarded is computed by the amount of cash paid or cost of merchandise awarded;
(6)(a) Social card games (player funded), in the amount of 20 percent of the gross receipts received as fees charged persons for the privilege of playing in card games;
(b) Social card games (house banked) in the amount of 20 percent of the gross receipts received by the house from such social card games. (Ord. 13-10 § 1, 2010; Ord. 17-06 § 1, 2006; Ord. 02-05 § 1, 2005).
3.98.050 Exemptions.
The tax levied pursuant to this chapter is in lieu of any excise privilege or occupational tax based on gross revenue under any other chapter of BMC Title 3 with respect to activities taxed under this chapter. Nothing herein shall be construed to exempt persons taxable under the provisions of this chapter from any tax imposed under any other chapter of BMC Title 3 with respect to activities other than those expressly taxed under this chapter.
The following shall be exempt from any tax imposed under this chapter:
(1) Any bona fide charitable or nonprofit organization as defined in BMC 3.98.030(3) conducting or operating bingo, raffles or amusement games, or any combination thereof whose gross revenue from such activities, less applicable deductions, is less than $5,000 per tax year shall be exempt from the tax imposed under BMC 3.98.040. (Ord. 17-06 § 1, 2006; Ord. 02-05 § 1, 2005).
3.98.060 Deductions.
In computing the tax imposed by this chapter, the following items may be deducted from the gross revenue otherwise subject to the tax:
Amounts derived from business which the city is prohibited from taxing under the Constitution or laws of this state or of the United States. (Ord. 13-10 § 2, 2010; Ord. 17-06 § 1, 2006; Ord. 02-05 § 1, 2005).
3.98.070 Rules and regulations.
The director may establish administrative rules and regulations as deemed appropriate, consistent with this chapter for the purpose of enforcing and carrying out its provisions. (Ord. 17-06 § 1, 2006; Ord. 02-05 § 1, 2005).
3.98.080 Savings.
Notwithstanding the adoption of this chapter, any conduct occurring before its effective date may be cited or charged under the preexisting chapter, and all citations and charges arising under the predecessor chapter remain in full force and effect, and all pleas, sentences and convictions arising under the predecessor chapter remain in full force and effect, and all penalties, fines, and assessments arising under the predecessor chapter remain in full force and effect. (Ord. 17-06 § 1, 2006; Ord. 02-05 § 1, 2005).
3.98.090 Severability clause.
If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. (Ord. 17-06 § 1, 2006; Ord. 02-05 § 1, 2005).
Prior legislation: Ords. 866, 888, 961, 966, 28-86, 9‑92, 44-97 and 53-97.