- A 5% tax on gross proceeds of an event must be paid by all groups conducting these activities. This is an excise tax on gambling. Under the law, only non-profit organizations can legally run these events. The law governing these activities is Chapter 271, Section 7A of the Massachusetts General Laws.
- In Massachusetts, only non-profit groups can LEGALLY conduct these types of events. In order to do so, the Legislature determined that the groups engaging in these activities must pay this tax. It is an excise tax on gambling and applies to any group that conducts these types of activities.
- The Lottery charges 5% tax because in 1969, the Legislature determined that all groups wishing to raise money for their charitable causes through gambling must pay a tax. The law, Chapter 271, Section 7A, requires the Lottery Commission to collect this tax and turn it over to the Commonwealth. The Lottery Commission doesn’t keep any of this tax. We are simply charged with collecting it.
- If your group conducts a charitable dinner, silent auction, and a raffle and casino night you will only pay tax on the gross proceeds of gambling activities. Such as, the raffle and casino tables.
Is there additional information on the 5% tax? Print
Modified on: Mon, Oct 24, 2022 at 10:45 AM
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