The Little Rock Legislative Council in Arkansas has endorsed requests for a study into a state tax on charitable bingo games, which many consider to be unfair.
The study was sponsored by Tracy Pennartz, D. Smith, Shirley Walters, and R. Greenwood, who say that they have received dozens of complaints about the tax from bingo operators.
Currently, the state applies a 1 cent tax per bingo game card. This tax, according to the organisers of the games, is cutting into proceeds that should be going to charity.
The tax generated $1.1 million during the last financial year, but the State Department of Finance and Administration used $600,000 to fund the five man divisions that monitored bingo operations in the state.
Pennartz said: "That money could have been spent in our communities.”
The meeting to discuss the tax issue is scheduled for September 24th. Shirley Waters has made a propsosal to study more than just ways to eliminate the tax. Her proposal includes a look at the licensing procedures, and the possibility of eliminating the requirement that charities and other organisations purchase the bingo cards used in their games from a licensed Arkansas distributor. She added that this requirement is costing smaller operators too much money.
David Dunn, who supports the proposal, has urged the committee to approve the measure before the start of the new academic year.
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