Bulletin: WA000049

Dear Associates:

Revised Code of Washington RCW 9.46.110 allows any county, city-county, city, or town by local law and ordinance to impose a tax on the receipt of proceeds for pull-tabs and punch boards. Taxes imposed under the chapter become a lien upon personal and real property used in the gambling activity in the manner provided for under RCW 84.60.010. The lien shall attach on the date the tax becomes due and shall relate back and have priority against real and personal property to the same as ad valorem taxes. RCW 84.60.010 Priority of tax lien states: The said lien shall have priority to and shall be fully paid and satisfied before any recognizance, mortgage, judgment, debt, obligation or responsibility to or with said real and personal property may become charged or liable.

You should be aware of the statutes and determine if the locality which you are insuring a tavern, card room, restaurant, etc. has implemented such an ordinance to impose the tax. You may wish to take exception to "Any gambling tax and/or lien imposed thereby pursuant to RCW 9.46.110" until you can determine if a tax exists and has been paid.

(The original attachment to this bulletin is available through the Washington District Office.)