West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-16 - Bingo
Section 110-16-16 - Payment of Reasonable Expenses: Disbursements and Net Proceeds

Universal Citation: 110 WV Code of State Rules 110-16-16

Current through Register Vol. XLI, No. 38, September 20, 2024

16.1. The licensee may pay reasonable, necessary and actual expenses incurred in connection with the conduct of bingo occasions from the proceeds of the conduct of bingo, but the payments cannot exceed twenty-five percent (25%) of the gross receipts collected during a license period measured at the end of that license period and not at the end of any single bingo occasion or at the end of any applicable quarterly reporting period: Provided, That so long as the licensee's records can provide sufficient supporting information, the percentage limitations may be applied separately with respect to each separate bingo license a given licensee organization holds. These payments may be made for:

16.1.1. rent paid for the use of any premises that does not exceed the fair market value for the premises, prorated for the days on which bingo occasions are conducted, but only if a copy of the rental agreement was filed with the application for license and any changes to the agreement were filed within ten (10) days of being made;

16.1.2. custodial services;

16.1.3. costs to the licensee for equipment and supplies used to hold the bingo occasion;

16.1.4. costs to the licensee for advertising the bingo occasion, but only to the extent the advertising is authorized in W. Va. Code '47-20-17 and Section 18 of this rule;

16.1.5. hiring security personnel but only if the personnel are licensed in accordance with W. Va. Code '30-18-1 et seq;

16.1.6. the cost of providing child care services to bingo patrons: Provided, That any proceeds received from the provision of child care services shall be handled in the same manner as bingo proceeds;

16.1.7. the actual cost to the licensee for prizes; and

16.1.8. other reasonable, necessary and actual expenses such as the reasonable legal fees incurred to obtain bingo licensing, accounting fees incurred to provide reports required by virtue of holding bingo licenses, license fees, authorized salaries paid to bingo operators and the prorata cost of utilities.

16.2. The cost of refreshments, souvenirs or any other items sold or provided through any concession may not be paid for out of the gross proceeds from bingo.

16.3. The net bingo proceeds, including any interest earned thereon, shall be expended for the charitable or public service purpose stated in the application within one (1) year after the expiration of the license.

16.4. None of the bingo proceeds may be used for construction or acquisition, of real or personal property unless the property is used exclusively for charitable or public service purposes.

16.4.1. Example 1. - Bingo proceeds may not be used to build a clubhouse for X charitable organization.

16.4.2. Example 2. - Bingo proceeds may be used to build a camp for the underprivileged.

16.4.3. Example 3. - Bingo proceeds may be used to maintain X club's barbecue pit.

16.4.4. Example 4. - Bingo proceeds may be used to repair a bus that transports children from the inner city to a church day camp.

16.5. If a licensee, in good faith, finds that it cannot meet or comply with any of the above requirements or wishes to use the proceeds of bingo games for a long range charitable or public service purpose, such as, for example, building a fire hall, then application must be made to tax commissioner for permission to:

16.5.1. spend the net proceeds for charitable or public service purpose not listed in the application, or

16.5.2. spend the net proceeds later than the one (1) year time period. If this permission is granted, the licensee must file quarterly reports with the tax commissioner until the proceeds are spent. This application must be filed no later than sixty (60) days prior to the end of the one (1) year time period.

Disclaimer: These regulations may not be the most recent version. West Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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