Section 435.180  Imposition of Tax, Returns

a)         There shall be paid to the Department 3% of the gross proceeds of any charitable games event conducted in the State. "Gross Proceeds" means all money received from the sale of chips, and the entire fee or donation charged for admission or entry into a charitable games event.  (Section 9 of the Act) For purposes of this Section, "fee or donation charged for admission or entry into a charitable games event" includes the amount paid to a sponsoring organization for hosting a charitable games event which is not open to the public (e.g., a "casino night" party which is hosted only for a corporation and its clients).  The entire amount of an entry fee or donation is considered to be "gross proceeds" even when payment does not entitle the person paying to receive any chips, and even though part or all of the fee represents payment for food or beverages.

b)         Each payment of tax shall be made by money order or certified check payable to the Illinois Department of Revenue (Section 9 of the Act). Payments shall be made within 30 days after the completion of the charitable games events.  On successive days, the payment for all such events shall be made within 30 days after the completion of the last such event.

c)         Every organization licensed to conduct charitable games must submit a report along with each payment of tax, on a form provided by the Department, which must contain the following information:  A list of the types of charitable games conducted, and the number of stations of each; the number of persons purchasing chips; the amount of the entry fee, if any; gross proceeds; the amount of cash prizes and the cost to the licensee of noncash prizes; the names of all persons and organizations providing security either for persons or property at the event; a listing, on a form provided by the Department, of all individuals participating in the management or operation of the games, containing a signed statement by all such individuals and the presiding officer of the organization that all provisions of the Act have been complied with; and any other information requested by the Department relating to books or records which the sponsoring organization is required to maintain.  In addition, the licensee shall file a list of all noncash prizes awarded, stating whether the prizes were purchased by the licensee or donated, and, if donated, by whom.

d)         If a sponsoring organization intends to cancel a charitable games event, it must notify the Department in writing prior to the event.  If it notifies the Department after the event date, it must file a return within 30 days after the scheduled date of the cancelled event.

e)         The sale of tangible personal property at charitable games events is subject to all State and local taxes and obligations (Section 8 of the Act).

(Source:  Amended at 21 Ill. Reg. 3978, effective March 14, 1997)