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Gambling and Admission Tax FAQs

How is Cabaret tax reported? 

Step 1 - The total gross receipts during entertainment periods are reported under the Cabaret tax classification.  The entertainment period gross receipts include sales of liquor, beer, wine, and food but does not include cover charges.  The deduction will be 80% of the gross.  The taxable amount is 20% of the gross.

Step 2 - Report the taxable cabaret amount under the B&O Service and Other tax classification.  There is a deduction for the Cabaret tax paid.  The remainder amount will be the taxable amount.

Tax shall not be levied upon establishments holding a Class B or C Entertainment and Dancing License.

What is Admissions?

Admissions is a fee or charge to enter a facility and/or engage in any activity.  Examples include cover charges, admission fee, golf and driving ranges, swimming pools, archery, billiards, shuffleboard, pool table, jukebox, picture machines, amusement rides, automatic baseball, table bowling, and all other ball operating games, electronic games, and darts.  Ticket purchase examples include theaters, dance hall, amphitheater, auditorium, stadium, athletic pavilions, fields, sporting events, automobile parking, and the circus

How is Admissions tax reported?

Step 1 - Start with the Supplemental Admission Tax Reporting form and schedule of tax per ticket and/or play.  If you do not have a form or schedule and need assistance contact TaxInfo.

Step 2 - The Admission tax is 5% of the admission fee, not the ticket price.  Multiply the number of tickets sold by the tax per ticket to arrive at the Admission tax due.

Step 3 - The total receipts from ticket sales less the Admission tax calculated in step 2 is then reported under the B & O Service and Other tax classification.

If the organization is exempt from taxation, pursuant to the RCW 82.04.3651, does it pay Service and Other tax on the net Admissions?

No.  The organization must report admission tax, however, no service and other tax will be due.  The organization must also provide proof of its non-profit status.

How are commissions from games and other machines reported?

Commissions from machines that you do not own such as music and amusement games, cigarette, ATM, pay phone, pool table, vending, and etc. including machines that are located on your premises where you do not have control of the coin box are reported under the Service and Other tax classification.

Are legitimate charitable or nonprofit organizations conducing gambling activities subject to the Gambling Tax?

No, they are exempt from tax on amusement games, bingo games, raffles, punchboard, pull tabs and social card games.

What is reported under amusement games?

Games that give a prize.  For example, a claw game.

How are amusement games reported?

Step 1 - Report the gross revenue under the Amusement Games tax classification.  Deduct out the cost of prizes, whether cash or merchandise awarded.

Step 2 - Report under the Service & Other tax classification the gross revenue minus the gambling tax paid.

How are merchandise-only boards reported?

Step 1 - Report the gross revenue under the appropriate Gambling tax classification with no deduction for prizes

Step 2 - Report under the Retailing tax classification the gross revenue minus the gambling tax paid.  There is no deductions for cost of prizes.

How are the combination boards reported?

Step 1 - Report the gross revenue under the appropriate Gambling tax classification with no deduction for prizes.

Step 2 - Report under the Service and Other tax classification the gross revenue minus the gambling tax paid.  The deduction for cash & merchandise prizes are allowable.

How are cash boards reported?

Step 1 - Report the gross revenue under the appropriate Gambling tax classification with no deduction for prizes.  

Step 2 - Report under the Service and Other tax classification the gross revenue minus the gambling tax paid.  The deduction for cash prizes is allowable. 

A copy of the Washington State Monthly Pull-Tab and Punchboard Summary is required along with your tax return.