OpinionJanuary 5, 1994
The state excise tax on bingo game sales has more than doubled this year -- an act that has bingo sponsors crying foul. The tax may appear innocent enough on the surface -- it's a kind of "sin" tax that benefits state veterans homes and carries a five-year sunset clause...

The state excise tax on bingo game sales has more than doubled this year -- an act that has bingo sponsors crying foul.

The tax may appear innocent enough on the surface -- it's a kind of "sin" tax that benefits state veterans homes and carries a five-year sunset clause.

But the plain fact is this tax will penalize many worthy local charities across the state. House Bill No. 112 is bad legislation that ought to be repealed this session.

Lawmakers may have thought they were passing on this tax to bingo players. But in actuality, this tax will reduce donations to local charities -- groups that can ill-afford reduced incomes.

Studies show that the typical bingo player is 50 years or older and lives on a fixed income. Many are retired. Organizations say that if they raise bingo prices fewer cards will be sold. To make up for this more than doubled tax, organizations must dip into bingo proceeds. And it's these proceeds that civic and fraternal organizations typically pour back into our local communities.

The new bingo tax of 3 percent is expected to generate an additional $5.7 million. Before Jan. 1, the state levied a 2.5 percent tax on bingo game receipts plus $10 per box on pull-tab cards. In other words, the legislature more than doubled this tax in a single year.

Receive Daily Headlines FREESign up today!

It's no secret who's running the games and where the money is now going. Under Missouri law, games can only be conducted by licensed charitable, fraternal, religious, service and veterans organizations. And that law further mandates that net receipts be devoted to charitable, religious to philanthropic purposes.

These are not commercial operations that are stuffing dollars into their own pockets. The games are typically staffed by dedicated volunteers who in turn boost local charities with badly-needed dollars. Ironically, about 30 percent of the games are sponsored by veterans organizations and their auxiliaries -- many of whom already donate proceeds to state veterans homes.

The loss of dollars in Cape Girardeau alone will be considerable. The local Kiwanis Club -- which runs one of the largest weekly bingo games -- will see its bingo tax increase from less than $10,000 to nearly $25,000. VFW Post 3838 says the tax may cost it an additional $700 to $1,000 a month.

Thousands of charitable dollars will be lost in our local region alone.

Bingo may have been seen as an easy target since this may have been considered a "volunteer tax." But that's because lawmakers thought only about the players and not the host organizations. Many of these host groups say bingo is one of the few ways they can make as much money to benefit local charities, scholarships, and youth programs.

We have no doubt that finances are tight in the state. But it just makes no sense to benefit one group at the detriment of thousands of local charities across the state. Yes, veterans homes deserve proper upkeep, but it should remain a responsibility of the state.

Charities have enough trouble keeping their doors open with various changes in state and federal tax laws. They can ill-afford this forced charity to the state of Missouri.

Story Tags

Connect with the Southeast Missourian Newsroom:

For corrections to this story or other insights for the editor, click here. To submit a letter to the editor, click here. To learn about the Southeast Missourian’s AI Policy, click here.

Advertisement
Receive Daily Headlines FREESign up today!