Ord 02-422
ORDINANCE NO. 02-422
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, AMENDING FEDERAL
WAY CITY CODE CHAPTER 14, SECTION 14-144,
REGARDING THE TAX RATE ON BINGO AND RAFFLES
(AMENDS ORDINANCES 90-15, 90-44, 91-101, 96-268, 96-279,
97-286, 97-301 and 98-329)
WHEREAS, the State Legislature modified Chapter 9.46.110 ofthe Revised Code of
Washington to reduce thè percentage amount of local taxation on bingo and raffles; and
WHEREAS, the City Council has determined that the taxation rate for bingo and
raffles should be reduced in order to comply with RCW 9.46.110 and as hereinafter amended.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
Section I. Chapter 14, Article IV, Section 14-144 is hereby amended as follows:
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.j..()~ percent of the gross receipts from I
a bingo game or raffle less the amount awarded as cash or merchandise prizes;
(2) An amusement game shall be taxed only at a rate sufficient to pay the actual eosts of
enforcement ofthe provisions of this division 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;
ORD # 02-422
,PAGEl
t@[p>1f
(3) Anypunchboard or pull-tab activity for bona fide charitable ornonprofit organizations shall
be at a rate of 1 0 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 five percent on gross receipts from the operation of the games;
(4) Any social card game at a rate of20 percent of the annual gross receipts;
(5) Fund-rasing activities at the applieable 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 amount 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.
(b) The city clerk is instructed and authorized toadopt appropriate reporting requirements, to ensure
the effective administration of license holders exempt from the payment of sueh 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 ofthis
ordinance or the invalidity of the application thereofto 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.
ORD # 02-422
,PAGE 2
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 five (5)
days fTom and after its passage and publication, as provided by law.
~ED by:;5ity Council of the City of Federal Way this
,20 .
I -
Flz¿ day of
CITY OF FEDERAL WAY
ATTEST:
~/~/~
CIT. CLERK, N. CHRIST GRE , C
~~
APPROVED AS TO FORM:
&-0 ~/ ~
~,.., CITY ATTORNEY,£OB C. 31'ERBAJIIK fl<fr¡,ì" 11. Rí{~ç...¿.J""
FILED WITH THE CITY CLERK: 8/13/02
PASSED BY THE CITY COUNCIL: 9/17/02
PUBLISHED: 9/25/02
EFFECTIVE DATE: 9/30/02
ORDINANCE NO. 02-422
KIORDIN\G,mbli"g"" bi"go ",,070102
R"",,d 2/5/02
ORD #07-471
, PAGE 3