No skill required for bingo (unless you’re an accountant)
August 29, 2008 by Shane BorerPosted in: "They're saying WHAT is exempt??", In this week's e-newsletter, Latest news & views, Sales and use tax missteps
It’s not just a game of chance — bingo comes with some surprising tax complications.
In Louisiana, every game of bingo, if it’s played correctly, comes with serious tax implications. Many churches and non-profit organizations rent their game equipment and materials from a distributor. Game cards, numbered balls, that giant rotating cage — they’ve got to come from somewhere.
And those bingo card dabbers (either the electronic or old-fashioned versions) that mark off when you’ve got the right number? That’s where sales and use tax comes in. The bingo materials distributor leases these devices to a charitable organization, which in turn takes over partial ownership of the dabbers.
The charity releases the dabbers to players and pays the distributor for every dabber used in a game session. Because giving the dabber to a player is considered a separate leasing of tangible personal property, the transaction between the charity and each player is taxable.
And you thought it was as simple as pulling out numbered balls.
Tags: Bingo, Charity, Tax complications
