Ord 97-301
, {<ill
ORDINANCE NO.
97-30l
AN ORDINANCE OF THE CITY OF FEDERAL WAY, WASHINGTON,
AMENDING FEDERAL WAY CITY CODE CHAPTER 14, SECTION 14-
143 REGARDING THE MAXIMUM LIMIT OF THE COST OF
PUNCHBOARDS AND PULL-TABS, AND SECTION 14°-144
REGARDING THE TAX RATE OF PUNCHBOARDS AND PULL-TABS
(AMENDS ORDINANCES 90-15,90-44, AND 96-279)
WHEREAS, The Legislature of the State of Washington has
enacted Chapter 394, Washington Laws,
signed into law by the Governor; and
1997,
which was duly
WHEREAS, Chapter 294, Washington Laws, 1997, section 4,
requires local jurisdictions to increase the cost of a single
chance for punchboards and pull-tabs from 50 cents to one
dollar; and
WHEREAS, Chapter 294, Washington Laws, 1997, section 4,
requires local jurisdictions to tax punchboards and pull-tabs
operated by charitable or nonprofit groups; and
WHEREAS, Chapter 294, Washington Laws, 1997, section 4,
makes other grammatical changes; and
WHEREAS, after due deliberation and consideration, the City
Council has determined that the changes permitted by Chapter
294, Washington Laws, 1997, section 4 are in the best interests
of the citizens of the City of Federal Way;
NOW, THEREFORE :
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON,
DOES ORDAIN AS FOLLOWS:
ORD # 97-30l
, PAGE 1
CC(Ö)\Plf
m
section 1.
Amendment.
The Federal Way City Code
("FWCC") shall be amended as follows:
A. Tax imposed and limit set.
FWCC Section 14-143 shall
be amended as follows:
Sec. 14-143. Same - Tax imposed.
The
city
imposes
a
tax
on
punchboard
and
pull-tab
activities «at., lat.. of fh.. t-o!<l"o!<lIL» as sDeci fied in Section
~ with the receipts therefrom going to the city; provided
that the qperation of punchboard and Dull-tabs are sub;ect to
the following conditions:
(1) « P11tlÙn:....a:rJb a"d ~1111 L.,Lo,» .chances maL « 01. ..1.1(.1.
shaH» only be sold to adults « wid. 01..,11 I.ave a $8.38
IÜ..':'L vI. ., oll.~le "I..",.:;.. U...:r..vl., sl..,ll 1:... Lð.~..d 01. ð. L.,s':'s
whi"h
sl..,ll
.L..fl..c.L
vnl.l
Ll...
~.LOoS
:r.....e':'~to
f.LvII.
0""'1.
puhGhl:.oa:..ds ahJ pLoll taLs»;
(2\
The price of a single chance mav not exceed one
dollar;
131-No punchboard 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 punchboard or pull-tab;
.Lil All prizes «fo1. ~tI1....I.l:.oalJs .,IIJ. ~l1ll LaLs» 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 «1Ihol!..Leill» in which any such punchboard or
pull-tab is located «and) )~on a winning number or symbol
being drawn, «SttCh» a merchandise prize must be immediately
ORD #
q7-<nl
, PAGE 2
removed «(tl..a..ðf..Ow»,
from the disnlay and awarded to the
winner.
All references to cash or merchandise nrizes. with a
value over twen~ dollars. must be removed from the information
flare when won.
or such omission shall be deemed a fraud for
the purposes of this division; And
(.2) When any person «5i'.ð.11 wi¡. o.~.. $26.66 iu» nna money
or merchandise from any punchboard or pull-tab over an amount
determined by the commission, every licensee under this section
shall keep a public record «tl.~~~o£» of the award for at least
90 days «tl.ðL~4£ter» containing such information as the state
gambling commission deems necessary.
B. Tax on gamblina activities.
FWCC section 14-144 shall
be amended as follows:
Sec. 14-144. Tax on gambling activities.
(a) In accordance with RCW 9.46.110, there is levied upon all
persons a tax on every gambling activity permitted by this
division at the following rates:
('1)
Any bingo or raffle activity shall be taxed at a rate of
ten
percent
of
the
gross
( (rð.ehu~..
..e':;ðiv~J.
tl.~..~f..om) )
receipts from a bingo aame or raffle less the amount «pa-id
for» awarded as cash or merchandise prizes;
(2)
An amusement game shall be taxed only at a rate sufficient
to pay the actual costs of enforcement of the provisions of this
division and RCW ch. 9.46 and such taxation shall not exceed two
percent
of
the
sum
of
the
gross
( (r e . ðhl1~..
rew~';'.",d
the1- ~£r om) ) receipts from the amusement game less the amount
ORD #
q7-~0l
, PAGE 3
«paid for» awarded as prizes;
(3)
Any
punchboard
or
pull-tab
activity
for
bona
fide
charitable or nonprofit oraanizations shall be at a rate of ten
percent on qross receints from the oneration of the aames less
the amount awarded as cash or merchandise prizes. Taxation of
punchboards or pull-tabs for commercial
stimulant onerators
shall be at a rate of five percent on gross receipts from the
oneration of the games;
(4)
Any social card game at a rate of 11 percent of the annual
gross receipts exceeding $10,000.00;
(5)
Fund-rasing activities at the applicable rates specified
above.
Provided, no tax shall be imposed pursuant to this section on
bingo,« rafflcD,» 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
( (i:ncome) )
receipts from
bingo,
amusement
games,
or
fund-raising
activities
or
any
combination thereof not exceeding $5,000.00 per year less the
amount «paid fv~» awarded as cash or merchandise prizes~ «or
has» No tax shall be imposed on the first ten thousand dollars
2f. «hðt iI,come» aross receints less the amount awarded as cash
or merchandise prizes from raffles «hot cxcee,dil"" $16,666.66
pel.
.lc4r »
conducted
by
anv
bona
fide
or
charitable
organization.
ORD # 97-301
, PAGE 4
(b)
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.
The provisions of this
ordinance are declared separate and severable.
The invalidity
of any clause, sentence, paragraph, subdivision, section, or
portion of this ordinance or the invalidity of the application
thereof to any person or circumstance, shall not affect the
validity of the remainder of the ordinance, or the validity of
its application to other persons or circumstances.
section 3.
Ratification.
Any act consistent with the
authority and prior to the effective date of ,this ordinance is
hereby ratified and affirmed.
section 4.
Effective Date.
This ordinance shall take
effect and be in force thirty (30) days from the time of its
final passage, as provided by law.
PASSED by the city council of the city of Federal Way
2lst
day of
October
, 1997.
this
CITY OF FEDERAL WAY
,~dd~ í\!p/
MAYOR, MARLON S. PRIEST
ATTEST:
, CMC
ORD #
97-301
, PAGE 5
APPROVED AS TO FORM:
-I!J5 ~. ~, ~ ~~.,k¡ :
CITY ATTORNEY, LON I K. LINDELL
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO. 97-301
09-30-97
lO-2l-97
lO-25-97
11-20-97
K' \ORDIN\GAMBLE2. TAX
ORD #
97-30l
, PAGE 6