Section 99-01.3-05-06 - Reporting gross proceeds and prizes1. When the sales price of a raffle ticket relates partly to admission for a meal or other nongaming activity, an organization shall deposit the total receipts into its gaming account and allocate the amount between gaming and nongaming activity in this order: a. An amount is allocated to raffle gross proceeds equal to the cost of the prize.b. An amount is allocated to nongaming activity to recover its cost. This amount must be documented and is not reported on a tax return.c. The remaining amount is allocated to raffle gross proceeds.2. If an organization conducts a raffle in which the prize drawing is in one quarter, the gaming activity must be reported in the quarter in which the prize drawing is held. If an organization conducts a calendar raffle in which prizes are awarded in more than one quarter, the gross proceeds and prizes must be reported in the quarter in which the final prize is awarded. Actual drawings for a calendar raffle may be conducted at one time with the awarding of prizes at a later date.N.D. Admin Code 99-01.3-05-06
Effective May 1, 1998; amended effective July 1, 2002; July 1, 2004; October 1, 2006.Amended by Administrative Rules Supplement 2016-360, April 2016, effective 4/1/2016.General Authority: NDCC 53-06.1-01.1
Law Implemented: NDCC 53-06.1-01.1