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Commission reviews lawful-gambling exemptions; linked bingo is largest item at ~$2.7M
Summary
The commission reviewed six lawful-gambling tax exemptions and a related credit, which LBO estimates reduce revenue by about $2.7 million annually; LBO said exemptions aim to simplify compliance for small organizations and reduce administrative burdens that would arise from full licensing.
Commissioners reviewed six lawful-gambling tax exemptions and a credit on Aug. 16, 2024, with LBO staff explaining these measures let small or infrequent charitable activities avoid full licensing and taxation.
Joel Enders told the commission that exemptions include bingo conducted in nursing homes or senior facilities when prizes per game are small, intermittent bingo at county or state fairs, limited raffles where annual prizes do not exceed $1,500, and a broader rule exempting organizations that run gambling five days or less per year and award no more than $50,000 in prizes. LBO estimated the combined fiscal impact of these exemptions at about $2.7 million annually.
Enders said the objective of the Raffle credit is to encourage net proceeds to be used to relieve poverty, homelessness or disability for individuals or families. LBO recommended conferring with the Gambling Control Board and the Department of Revenue to assess whether the exemptions are simplifying compliance as intended and whether technical updates are warranted.
Members discussed committee jurisdiction for gambling regulations (state government/commerce) versus tax policy (tax committees); Nora Pollock, nonpartisan Senate counsel, explained tax policy issues generally land with taxes committees while regulatory matters sit with state government or commerce committees.
