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The Official Website of the City of Kent

 

Gambling Tax

(Kent City Code Chapter 3.21) 

 

Overview: 

Any person, corporation, association, organization or bona fide charitable or nonprofit organization intending to conduct any amusement games, bingo and raffles, punch boards and pull tabs, and social card games or any other gambling activity must register for gambling activity and obtain a City Business License prior to commencement of such activity.  You must also register with the Washington State Gambling Commission.

 

Section 3.21.010 of the Kent City Code establishes the definition of terms used on this website and certain related referenced documents, e.g. "social card game" and "punchboards".

 

Resources: 

Gambling Tax Return 

 

Who is subject to the gambling tax? 

All persons, associations, and organizations that have been duly licensed by the Washington State Gambling Commission to conduct or operate gambling activities

 

Section 3.21.010 of the Kent City Code establishes the following exemptions for bona fide charitable or nonprofit organizations as defined in Chapter 9.46 RCW provided that:

 

  • The organization has not paid operating or management personnel, AND
    • Combined gross receipts from bingo and amusement games less the amount awarded as cash or merchandise for prizes does not exceed $5,000 per year OR
    • Gross receipts from raffles less the amount awarded as cash or merchandise for prizes does not exceed $10,000

 

Social Card Games: 

The operation or conduct of social card games by any person, association, or organization as a commercial stimulant, as defined in Chapter 9.46 RCW, is prohibited with the City of Kent except as follows:

 

  • Bona fide charitable or nonprofit organizations, as defined in Chapter 9.46 RCW 
  • Organizations lawfully operating in an area as described in RCW 9.46.295 and annexed by the City of Kent

 

When is payment due? 

The gambling tax is due and payable on or before the end of the month immediately following the end of the tax reporting quarter, e.g. 1st Quarter - April 30th.  Taxpayers with City gambling taxes exceeding $50,000 during the previous calendar year must submit taxes on a monthly basis in which case the tax is due and payable on or before the end of the month immediately following the end of the tax reporting month, e.g. February - March 31st.

 

Penalties and interest for late payments are charged as follows:

 

Penalties 

One month past due                      10% ($5.00 minimum)

Two months past due                    15% ($10.00 minimum)

Over two months past due             20% ($20.00 minimum)

 

Interest is charged based on 1% of the amount past due (12% per annum) or $2.00, whichever is greater.  There is a "non-sufficient funds" (NSF) charge of $25.00 for all returned checks.

 

How do I file and pay gambling tax? 

Complete and sign the Gambling Tax Return 

 

Remit payment as follows:

 

City of Kent

Finance Customer Services

220 - 4th Avenue South

Kent, Washington  98032

 

The City is currently developing an online tax filing and payment option and will make an announcement when it becomes available. 

 

What are the gambling tax classifications and rates? 

 

Business Activity Tax Rate
Amusement Games   2.0% (.02)
Bingo and Raffles   5.0% (.05)
Punch Boards / Pull Tabs 10.0% (.10)
House-banked Social Card Games                11.0% (.11)
Social Card Games 11.0% (.11)
 

 

What tax deductions are available and how are they claimed? 

Section 3.21.010 of the Kent City Code establishes a deduction for the amount awarded as cash or prizes for the following gambling activities:

  • Amusement games
  • Bingo and Raffles
  • Punch boards/Pull Tabs

There are no deductions allowed for house-banked social card games or other social card games. 

 

Admissions Tax

Whenever a charge is collected for admission to any place or event for entertainment or recreation within the Kent city limits, an admissions tax is levied. 

READ MORE

B&O Tax

In general, all businesses subject to the State of Washington business and occupation tax and conducting business activities within Kent city limits are subject to the City's tax.

READ MORE

Utility Tax

All organizations (including the City of Kent) providing the following services are subject to the utility tax:

  • Water
  • Sewer
  • Drainage
  • Garbage collection and disposal
  • Electric and Natural Gas
  • Cable
  • Telephone and cellular

 

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