PA SGOC Recording and Reporting Tip - The tax amount should be included in the cost of game

Welcome to October!

Today I wanted to direct this tip to Social and Fraternal organizations that are not tax exempt and sell Small Games of Chance. 

Tax amounts you are paying to purchase games and prizes should be included in the cost of game.

 If you currently  do not include the taxes you pay when you purchase your games from your SGOC Distributor in your 'cost of game', you will want to go back beginning with the games in play as of July 1st 2013.  You will want to recalculate your Schedule 5 forms and include the 6% tax amount that you paid for the cost of game. 

For example, a 6 % tax amount for a $50.00 game is $3.00.  So if you have $50.00 listed because that is what the SGOC distributor charged you and you also paid 6% tax, you will want to change the amount on your form from $50.00 to $53.00.

Raise the Jolly Roger!!

Lets Go Bucs!!

Kelly

~Think Out of the Jar