ORD 10-663ORDINANCE NO. 10-663
AN ORDINANCE of the City of Federal Way, Washington, relating to
the gambling tax rate for pull tabs; amending FWRC 3.40.040.
(Amending Ordinance No. 90-15)
WHEREAS, RCW 9.46.110 authorizes the City Council to establish gambling tax rates on
any punchboard or pull tab activity and on social card games; and
WHEREAS, the City Council established the maximum gambling tax rate of five percent
(5%} on any punchboard or pull tab activity in 1990; and
WHEREAS, the City Council finds that it is in the interest of the citizens to promote
economic development by encouraging businesses to remain in Federal Way; and
WHEREAS, current economic downturn is adversely affecting businesses; and
WHEREAS, the City Council has the authority under State Law to reduce the tax rate on
punchboard or pull tab activity and on social card game activity; and
WHEREAS, the City Council finds it is in the best interest of the City to reduce the gambling
tax rate on punchboard or pull tab activity for commercial stimulant operators, and on social card
game activity.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Chapter 3.40.040 of the Federal Way Revised Code is hereby amended to read as
follows:
3.40.040 Tax on gambling activities.
(1) In accordance with RCW 9.46.110, there is levied upon all persons a tax on every
gambling activity permitted by this chapter at the following rates:
(a) Any bingo or raffle activity shall be taxed at a rate of five percent of the gross receipts
from a bingo game or raffle less the amount awarded as cash or merchandise prizes;
Ordinance No. 10-663 Page 1 of 3
(b) An amusement game shall be taxed only at a rate sufficient to pay the actual costs of
enforcement of the provisions of this chapter and Chapter 9.46 RCW and such taxation shall not
exceed two percent of the sum of the gross receipts from the amusement game less the amount
awarded as prizes;
(c) Any punchboard or pull-tab activity for bona fide charitable or nonprofit organizations
shall be at a rate of 10 percent on gross receipts from the operation of the games less the
amount awarded as cash or merchandise prizes. Taxation of punchboards or pull-tabs for
commercial stimulant operators shall be at a rate of #+vethree percent on gross receipts from the
operation of the games;
(d) Any social card game at a rate of ten percent of the annual gross receipts;
(e) Fund-raising activities at the applicable rates specified above.
Provided, no tax shall be imposed pursuant to this section on bingo, amusement games or
fund-raising activities when such activities or any combination thereof are conducted by a bona
fide charitable or nonprofit organization as defined in RCW 9.46.0209, which organization has
not paid operating or management personnel and has gross receipts from bingo, amusement
games, or fund-raising activities or any combination thereof not exceeding $5,000 per year less
the amounf awarded as cash or merchandise prizes. 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 or charitable organization.
(2) The city clerk is instructed and authorized to adopt appropriate reporting requirements, to
ensure the effective administration of license holders exempt from the payment of such tax.
Section 2. Severability. Should any section, subsection, paragraph, sentence, clause, or
phrase of this chapter, or its application to any person or situation, be declared unconstitutional or
invalid for any reason, such decision shall not affect the validity of the remaining portions of this
chapter or its application to any other person or situation. The City Council of the City of Federal
Way hereby declares that it would have adopted this chapter and each section, subsection,
sentence, clauses, phrase, or portion thereof, irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
Section 3. Corrections. The City Clerk and the codifiers of this ordinance are authorized
to make necessary corrections to this ordinance including, but not limited to, the correction of
scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any
references thereto.
Orciinance No. 10-663 Page 2 of 3
Section 4. Ratification. Any act consistent with the authority and prior to the effective
date of this ordinance is hereby ratified and affirmed.
Section 5. Effective Date. This ordinance shall take effect and be in force August 1, 2010,
as provided by law.
PASSED by the City Council of the City of Federal Way this 15th day of June, 2010.
CITY OF FEDERAL WAY
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M OR, L1NDA KO HMAR
ATTEST:
CITY CLERK, CAR MC ILLY, CMC
APPROVED AS TO FORM:
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CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK: 5/25/10
COUNCIL BILL NO.: 541 B
PASSED BY THE CITY COiTNCIL: 6/15/10
PUBLISHED: 6/ 19/2010
EFFECTNE DATE: 8/1/2010
ORDINANCE NO.: 10-663
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