5.20.060 Tax levied upon gambling activities – Exemptions – Use of revenues

5.20.060 Tax levied upon gambling activities – Exemptions – Use of revenues.

A. A tax at the rates specified in this section is levied on all persons, associations and organizations who engage in the following activities:

	Activity	Tax Rate
1	Conduct of any bingo game or raffle	Five percent of the gross revenue received after the amount paid for prizes or as prizes is deducted
2	Conduct or operation of any amusement game	Two percent of the gross revenue received after the amount paid as prizes is deducted
3	Operation of pull-tabs or punch boards as a commercial stimulant	Five percent of the gross revenue received
4	Operation of pull-tabs or punch boards by bona fide charitable or nonprofit organization	Ten percent of the gross revenue received after the amount paid for prizes or as prizes is deducted
5	Fundraising activities by bona fide charitable or nonprofit organization	Ten percent of the gross revenue received after the amount paid for prizes or as prizes is deducted

B. Provided, however, that the following exemptions shall apply to the tax levied by subsection A:

1. No tax shall be imposed on bingo or amusement games when such activities or any combination thereof are conducted by a bona fide charitable or nonprofit organization which organization has no paid operating or management personnel and has gross receipts from bingo or amusement games, or a combination thereof, not exceeding $5,000 per year, less the amount awarded as cash or merchandise prizes.

2. 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 a bona fide charitable or nonprofit organization.

3. An amount equal to 50 percent of the tax upon bingo and amusement games conducted by bona fide charitable or nonprofit organizations will be waived upon satisfactory proof submitted by the organization showing that the proceeds of such gambling activity are used entirely within the city for community or charitable purposes.

4. No tax shall be imposed upon lower volume licensees, as defined by WAC 230-04-065, conducting gambling activities under subsections (A)(1) and (A)(5) of this section. The license officer, as defined in BMC 5.04.040, is directed to adopt reporting requirements to ensure the effective administration of license holders exempt from payout of the taxes imposed by this section.

C. Pursuant to RCW 9.46.113, the city shall use the revenue collected from the taxes levied on the authorized gambling activities in this section primarily for the purpose of enforcement of the provisions of this chapter by the city police department. (Ord. 1807 § 1, 2000).