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P&R for the Center, then it appears that there is inurement of
petitioner’s net earnings to Zeve and Popovic.13
The record includes practically no evidence as to the
reasonableness of the $250 rental for the Center. Petitioner
directs our attention to only two items, as follows:
1) Under Section 2915.09(A)(3) of the Ohio Revised
Code, a rental rate of $250.00 per session is a reasonable
rate for a bingo hall (tr.12-13); and 2) in the decision of
the Lorain County Court of Common Pleas in the civil action
(Ex. AW, at p.5), the court expressly allowed a deduction of
$250.00 per session for the rental of Petitioner’s bingo
hall [the Elyria Hall].
(A) Ohio Statute. The cited Ohio statute, section
2915.09(A)(3), Ohio Revised Code,14 does not provide that $250
13 Petitioner contends that the $250 rent is reasonable;
petitioner does not contend that the existence of P&R as a
corporation, or the fact that Zeve and Popovic together have only
a minority interest in P&R, affects the determination of whether
there is an inurement of petitioner’s net earnings to Zeve and
Popovic.
14 Sec. 2915.09, Ohio Revised Code, provided in pertinent
part as follows for the years in issue:
Sec. 2915.09.(A) A charitable organization that
conducts a bingo game shall:
* * * * * * *
(3) Conduct the bingo game on premises owned by the
charitable organization, premises owned by another
charitable organization and leased from that charitable
organization for a rental rate not in excess of two hundred
fifty dollars per bingo session, or premises leased from a
person other than a charitable organization for a rental
rate that is not more than is customary and reasonable for
premises that are similar in location, size, and quality but
not in excess of two hundred fifty dollars per bingo
session. * * *
(continued...)
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