H. B. 2496
(By Delegates J. Martin, Mezzatesta and Michael)
(Introduced February 15, 1995; referred to the
Committee on Finance.)
A BILL to amend and reenact section twenty-four, article twenty;
section twenty-two, article twenty-one; and section two,
article twenty-three, all of chapter forty-seven of the Code
of West Virginia, one thousand nine hundred thirty-one, as
amended, all relating to licensure and reporting
requirements relating to charitable bingo, raffles, raffle
boards or games; permitting nonprofit entities receiving
state or federal funds to elect annual reporting periods
which coincide with the licensee's fiscal year; permitting
licensed public accountants to compile and review or audit
records of licensed entities; deleting requirement for
audited financial reports in accordance with certain
standards; providing that persons donating raffle or game
items or services without compensation are not required to
be licensed as a wholesaler or distributor.
Be it enacted by the Legislature of West Virginia:
That section twenty-four, article twenty; section twenty-
two, article twenty-one; and section two, article twenty-three,
all of chapter forty-seven of the Code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended and
reenacted, all to read as follows:
ARTICLE 20. CHARITABLE BINGO.
§47-20-24. Filing of reports.
Each licensee holding an annual license shall file with the
tax commissioner a quarterly and an annual financial report
summarizing its bingo operations for the time period covered by
the report. Each quarterly report shall be filed within twenty
days after the end of the quarter which it covers. The annual
report shall be filed within thirty days after the expiration of
the license under which the operations covered by the report were
held. The time period covered by the annual report is the full
license year or, at the election of a licensee receiving state or
federal funding, the most recently ended state or federal fiscal
year.
Each licensee holding a limited occasion license or state
fair license shall file with the tax commissioner a financial
report summarizing its bingo operations for the license period
within thirty days after the expiration of the license under which the operations covered by the report are held. The report
shall contain the name, address and social security number of any
individual who receives during the course of a bingo occasion
prizes the aggregate value of which exceeds one hundred dollars,
and other information required by the commissioner: Provided,
That any licensee failing to file such report when due shall be
liable for a penalty of twenty-five dollars for each month or
fraction thereof during which the failure continues, such penalty
not to exceed one hundred dollars: Provided, however, That
annual financial reports for license years ending after the first
day of July, one thousand nine hundred ninety-three, must be
audited financial reports as defined by the American institute of
certified public accountants if a licensee's gross receipts
exceed one hundred thousand dollars: Provided further, That
annual financial reports for license years ending after the first
day of July, one thousand nine hundred ninety-three, must contain
a compilation and review of such financial report by a certified
or licensed public accountant, or may be audited by a certified
or licensed public accountant, as defined by the American
institute of certified public accountants, if a licensee's gross
receipts exceed fifty thousand dollars but are less than one
hundred thousand dollars.
ARTICLE 21. CHARITABLE RAFFLES.
§47-21-22. Filing of reports.
Each licensee holding an annual, limited or state fair
license shall file with the commissioner a financial report
summarizing its raffle operations within thirty days after the
expiration date of such license. The time period covered by an
annual report is the full license year or, at the election of a
licensee receiving state or federal funding, the most recently
ended state or federal fiscal year.
The reports required by this section shall contain the name,
address and social security number of any individual who received
during the course of a raffle occasion prizes the aggregate value
of which exceeded one hundred dollars, and other information
required by the commissioner: Provided, That any licensee
failing to file such report when due shall be liable for a
penalty of twenty-five dollars for each month or fraction thereof
during which the failure continues, such penalty not to exceed
one hundred dollars: Provided, however, That annual financial
reports for license years ending after the first day of July,
one thousand nine hundred ninety-three, must be audited financial
reports as defined by the American institute of certified public
accountants if a licensee's gross receipts exceed one hundred
thousand dollars: Provided further, That annual financial reports for license years ending after the first day of July,
one thousand nine hundred ninety-three, must contain a
compilation and review of such financial report by a certified or
licensed public accountant, or may be audited by a certified or
licensed public accountant, as defined by the American institute
of certified public accountants, if a licensee's gross receipts
exceed fifty thousand dollars but are less than one hundred
thousand dollars.
ARTICLE 23. CHARITABLE RAFFLE BOARDS AND GAMES.
§47-23-2. Definitions.
For purposes of this article, unless specified otherwise:
(a) "Commissioner" means tax commissioner of the state of
West Virginia, or his delegate.
(b) "Retail value" means the actual consideration paid to
the wholesaler by the retailer for any raffle boards or games.
(c) "Person" means any individual, association, society,
incorporated or unincorporated organization, firm partnership or
other nongovernmental entity or institution.
(d) "Retailer" means every person engaged in the business of
making retail sales of raffle chances except a charitable or
public service organization authorized to conduct raffles
pursuant to section three, article twenty-one of this chapter.
(e) "Charitable raffle board" or "charitable raffle game" means: (1) A board or other device that has many folded printed
slips to be pulled from the board or otherwise distributed
without a board on payment of a nominal sum in an effort to
obtain a slip or chance that entitles the player to a designated
prize; (2) a series of paper cards with perforated break-open
tabs, a face value of which is covered or otherwise hidden from
view to conceal one or more numbers, letters or symbols, which,
on payment of a nominal sum, entitles the player to obtain a
chance to a designated prize; or (3) such other similar game
which may be defined by the state tax commissioner by legislative
rule.
(f) "Sale" means the transfer of the ownership of tangible
personal property for a consideration.
(g) "Verification" means a unique manufacture identifiable
serial number which is required to be printed on each ticket in
a charitable raffle board or charitable raffle game or such other
form of identification as may be prescribed by the tax
commissioner upon a showing of undue hardship by the taxpayer:
Provided, That such other form of identification shall be
prescribed by rule in accordance with the provisions of article
three, chapter twenty-nine-a of this code.
(h) "Wholesaler" or "distributor" means any person or entity engaged in the wholesale distribution of charitable raffle boards
or games or similar boards or devices, as defined by the
commissioner, and licensed under the provisions of this article,
to distribute said devices to charitable raffle boards or games
retailers as defined in this article. It also includes anyone
who is engaged in the manufacturing, packaging, preparing or
repackaging of charitable raffle boards or games for distribution
in this state, except for a person who is not regularly engaged
in the business of manufacturing, packaging, preparing or
repackaging charitable raffle boards or games and who is donating
items or services to a nonprofit entity without compensation.
NOTE: The purpose of this bill is to allow nonprofit entities
receiving federal or state funds to elect a fiscal year other
than the license year for tax department reports on charitable
bingo or raffles; to permit public accountants to compile and
review records of licensed entities and to delete a requirement
for audited financial reports by a certified public accountant in
accordance with certain standards; and to provide that persons
donating raffle or game items or services without compensation
are not required to be licensed as a wholesaler or distributor.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.