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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
bingo; licenses; taxes.
(NOW: bingo; conduct; licenses; taxes)
Purpose
Increases the permissible gross receipts of bingo games and the maximum cash bingo prize amounts.
Background
The Arizona Department of Revenue (ADOR) regulates the conduct of bingo games through class A, class B and class C licenses (A.R.S. §§ 5-502 and 5-504). A bingo licensee must pay outlined license fees, governing body fees and taxes in an amount or at a rate depending on the license classification. Any person or group may apply for a class A license, which is generally obtained for recreational or social purposes. A class B or class C license may be issued to qualified organizations dedicated to raising funds for the sponsoring charitable organization. A qualified organization is a homeowners' association or bona fide charitable, fraternal, religious, social, veterans' or volunteer firefighter organization, nonprofit ambulance service or nonprofit national or state organization that has been in existence for two years before applying for a bingo license (A.R.S. § 5-401).
A class A licensee's gross receipts are capped at $15,600 per year and the licensee's adjusted gross receipts are taxed at 2.5 percent. A class B licensee's gross receipts are capped at $300,000 per year and taxed at a rate of 1.5 percent. A class C licensee's gross receipts are capped at $300,000 per year and taxed at a rate of 2 percent. A class A licensee must pay all bingo game prizes, and a class B or class C licensee must pay all bingo game expenses, by check, except for cash prizes under $150 (A.R.S. §§ 5-413 and 5-414).
If H.B. 2522 results in a change in bingo tax collection, there may be a fiscal impact to the state General Fund.
Provisions
1. Raises, from $15,600 to $75,000, the gross receipts cap for bingo games conducted under a class A license.
2. Raises, from $300,000 to $500,000, the gross receipts cap for bingo games conducted under a class B or class C license.
3. Raises, from $150 to $1,100, the maximum bingo cash prize amount for bingo games conducted under class A, class B and class C licenses.
4. Removes the prohibition on conducting a lottery or raffle within 12 hours before or after a bingo occasion or game on a premises used for bingo games or within 1000 feet of the bingo game.
5. Makes conforming changes.
6. Becomes effective on the general effective date.
House Action
COM 2/18/20 DPA/SE 9-0-0-0
3rd Read 3/5/20 54-5-1
Prepared by Senate Research
March 10, 2020
LB/gs