WAC 131

Tax on selected business services, financial businesses, or other business or service activities.

Exemptions--Agricultural fairs.

Definitions.

Tax imposed--Retail sales--Retail car rental.

Gambling activities. Effective 01/29/07.

Games of chance.Effective 5/7/99.

AGRICULTURAL FAIR ASSOCIATION EXEMPTION Revised 2/2/09 See ETA 3039.2009

Agricultural fair association exemption

Contests of Chance RCW 82.04.285 imposes a B&O tax on the gross income from “contests of chance.” The Washington State Gambling Commission regulates the operations of “contests of chance” under chapter 9.46 RCW. The Department has issued ETA 3172 to explain that the Department applies RCW 82.04.285’s definition of “contests of chance” consistent with the Gambling Commission’s regulation of contests of chance.

B&O Tax Reporting Requirement Continues After Business Activity Stops

Registered Out-of-State Businesses Currently Not Reporting Income from Service Activities - New Apportionment for Certain Income

Gambling Business and Occupation Tax

Tax Attorneys and CPAs - New "Economic Nexus" in Washington State May Impact Your Clients

New Apportionment Method

Temporary B&O Tax Rate Increase Small Business Credit Increase Active Non-Reporting Change

Temporary B&O Tax Rate Increase Small Business Credit Increase Active Non-Reporting Change

New "Economic Nexus" in Washington State May Impact "Foreign Corporations"

B&O AND RETAIL SALES TAX -- CARD ROOM FEES.An hourly fee that is charged to players for using a "public card room" is taxable under the Service and Other Business Activities Tax classification.

PARKING -- GAMBLING.Gaming receipts designated "parking fees" were found in fact to be for card playing, taxable as services.

SERVICE B&O TAX -- RETAILING B&O TAX -- AMUSEMENT DEVICE -- MERCHANDISING GAME -- COIN-OPERATED CRANE GAME MACHINE.A coin-operated crane game machine meets Rule 187's definition of an "amusement device", rather than being similar to Rule 131's merchandising game of a punchboard that offers prizes of merchandise.The crane game is coin operated and is a game of chance, skill, and amusement with no assurance that a prize will be won.The receipts from the crane game are subject to the B&O tax.The punchboard is specifically designated by Rule 131 to be a merchandising game.The gross

SERVICE B&O TAX -- GAME OF CHANGE -- PULLTAB GAME -- TAXABLE INCOME MEASURED BY INCREASES -- DEDUCTIONS -- PAY OUTS -- COST OF GAME NOT DEDUCTIBLE.The business activity of operating nonmerchandising pulltab games, a game of chance, is subject to the Service B&O tax.The taxable income is measured by the "increases" defined as "the winnings, gains, or accumulations accruing from any one game over and above the amount put into the game by the operator."Deductions from the increases are allowed only for pay outs to winners."The amount put into the game" does not include the cost of the

GAMBLING -- PULL TABS -- GAINS AND LOSSES -- OFFSETS -- TYPE OF GAME.Rule 131 does not prohibit a taxpayer from offsetting gains and losses by aggregating the total income from one type of game and subtracting from it the total losses from the same type of game.The phrase "type of game" refers to all games of chance commonly conceived of and operated as a particular kind of game; e.g., pull tabs are one "type of game," punchboards are another "type of game," bingo is another "type of game."

B&O TAX - SALES TAX - MERCHANDISE PUNCHBOARDS.Prior to the amendment of Rule 131, effective April 1, 1999, the gross proceeds from merchandise punchboards were subject to Retailing B&O tax and retail sales tax.