(a) All of the net proceeds of a bingo game shall be designated and expended for charitable or educational purposes. Provided, however, in no event shall less than 10 percent of the adjusted gross proceeds be designated for charitable or educational purposes. Adjusted gross proceeds shall be defined as gross proceeds less prize payouts. Net proceeds shall include gross proceeds less reasonable expenses incurred or paid in connection with the holding, operating, or conducting of bingo games, including all of the following bona fide expenses, in reasonable amounts:
(1) The purchase or rental of equipment necessary for conducting bingo games and payment of services reasonably necessary for the repair and maintenance of equipment.
(2) The payment of cash prizes or the purchase of prizes or merchandise.
(3) The actual rental or mortgage payment on the location at which bingo is conducted or a pro rata share if the building is used for other purposes in addition to the operation of bingo games. The rental or mortgage payment shall be reasonable as compared to the fair rental value or fair market value of similar property located in the area where the bingo games are conducted.
(4) Actual insurance or a pro rata share if the building is used for other purposes in addition to the operation of bingo games.
(5) Utilities or a pro rata share if the building is used for other purposes in addition to the operation of bingo games.
(6) Janitorial services or a pro rata share if the building is used for other purposes in addition to the operation of bingo games.
(7) The fee required for issuance or reissuance of a permit to conduct bingo, including the fee to be collected by the governing body and paid to the Calhoun County Bingo Regulatory Commission.
(8) Security personnel or a pro rata share if the building is used for other purposes in addition to the operation of bingo games.
(9) Accountant fees in connection with the preparing and filing of financial statements required by this article.
(10) A reserve for a cash operating account not to exceed fifteen thousand dollars ($15,000).
(11) Other reasonable expenses incurred by the permit holder, not inconsistent with this article.
(b) Each permit holder shall transfer the proceeds for charity or education to the charity or educational agency at the end of each calendar quarter or place the proceeds in a separate account for the benefit of charity or education in an interest bearing trust account at the end of each calendar quarter. If the proceeds are placed in a trust account they shall be transferred to the charity or educational agency at the end of the next calendar quarter preceding the transfer.
Last modified: May 3, 2021