ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.24. Bingo.
(1) A bingo parlor is defined as a place of amusement; therefore, the
gross receipts derived therefrom are subject to sales tax. State of
Alabama v. Roosevelt Crayton, d/b/a Jody's Sporting Goods, 344 So.
2d 771 (Ala. Civ. App.), cert. denied, 344 So. 2d 775 (Ala. 1977).
(2) Effective June 1, 1990, Section 40-23-4(a)(43), Code of Alabama
1975, exempts certain bingo games and operations from the sales tax levied
in Section 40-23- 2(2). This exemption, however, does not apply to any
gross receipts from sales of tangible personal property such as concessions,
novelties, food, or beverages.
(3) The exemption referenced in paragraph (2) above only applies in
those counties which have duly enacted constitutional amendments legalizing
bingo games and operations. Said exemption is further limited to bingo
games and operations conducted by organizations which have qualified for
exemption under the provisions of 26 USC Section 501(c)(3), (4), (7), (8),
(10), or (19) or which are defined in 26 USC Section 501(d).
(4) To qualify for the exemption contained in Section 40-23-4(a)(43)
an organization must comply with the distribution requirements of applicable
local laws including any threshold limits with respect to charitable donations
from bingo receipts.
(5) Organizations claiming to qualify for the exemption referenced in
paragraph (2) above must provide the Revenue Department with documented
evidence that they qualify for exemption with the Internal Revenue Service
and that they are in compliance with the distribution requirements of applicable
local laws. (Adopted June 12, 1978, readopted through APA effective October
1, 1982, amended December 6, 1990)
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