Taxing Charity Bingo

Reported by: Phillip Ohnemus
Updated: 6/03/2009 6:12 pm
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There's been a rush this week to pass new electronic bingo ordinances within the CBS 42 viewing area.

Etowah County, the Town of Argo, and the City of Birmingham have each embraced the game.

The idea is to capitalize on the incredible revenue that facilities like Wind Creek in Atmore have generated.

But on Tuesday Jefferson County D.A. Brandon Falls warned Birmingham City Council members that taxing charity bingo may not be legal.

Birmingham plans to tax each machine, while Argo wants a flat bingo tax collected each year.

Cumberland School of Law professor Michael Floyd says this is an issue that may need clarification through the courts.

"If a charity goes into a profit making business, that activity can be taxed even though the fundamental charitable activity or the charity can't be taxed under this exemption. There's a very complicated body of law that governs what charitable activities are exempt from tax and what are subject to tax."

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anonymous59 - 6/4/2009 6:57 AM
Is Argo corrupt? Argo's Mayor Paul Jennings and city councilmen Bill Leake, Bill Rutledge and Herschel Phillips refused to answer one simple question asked by their fellow councilman Steve Medori. Would the Mayor and all the councilmen be willing to swear and sign documents stating they have not received (in the past or future) any monetary, non-monetary or gifts from John McLeod, Roadhouse Gaming Systems LLC or any associates? If there’s nothing to hide, why did they refuse to answer councilman Steve Medori’s question?

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