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Mr. Kilanowski states that a fee of $10,000/month is due from organizations which exceed the $900,000 level in a fiscal year. This is incorrect. The $10,000 is a one-time number. To see the calculation look at Mn Revenue Dept. Worksheet E- Lawful Gambling Combined Receipts Tax.
That said, the method and level of taxation on Charitable Gambling is horrendous and must be reduced or smaller organizations will continue to exit the industry and survivors have less and less to donate to...
I'm CEO of a club that does about $2.5 mil/ year. Last month we were at about $1.3 mil for the fiscal year. Our combined receipts tax was under $8000. The total YTD is about $31,000. The $10,200 gets paid the first month you cross the threshold. After that it is part of the running total of taxes already paid that gets deducted from the total to determine what's due in the current month.
The $10,200 represents the accumulated tax that is due from $0 to $900,000. After $900,000 the...