Owned premises—If an organization owns the permitted premises, the percentage of utilities that is directly related to gambling may be paid as an allowable expense. Utilities may include heating, cooling, lighting, water, and telephone services.
Licensed veterans and fraternal organizations that wholly own or wholly lease a building as their primary headquarters may qualify to report certain utility costs for that building as a lawful purpose expenditure under code A16.
Leased premises—If an organization leases the premises, rent is all-inclusive and no utilities may be paid for that site.
Square footage
A. Calculate the square footage specifically used for
gambling. Do a separate calculation for each type of
gambling activity not conducted in the same area,
and add all amounts. ............................................................... A. _______sq. ft.
B. Calculate the total area of the premises. If the
premises has multiple levels, include the total square
footage for all levels. ............................................................... B. _______sq. ft.
Hours used
C. Calculate the hours the area is used for gambling each
week. Do a separate calculation for each type of
gambling activity not conducted in the same area, and
add all amounts. ...................................................................... C. _______hours
D. Calculate the hours the entire premises is open for
business each week. ............................................................... D. _______hours
Percentage allowed
E. Divide figure A by figure B ........................................................ _____________
F. Divide figure C by figure D ........................................................ _____________
G. Multiple figure E by figure F. This is your allowable
percentage .................................................................................... _____________
Example
A = 3,000
Result
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Check—The percentage of the allowed utility cost directly related to gambling may be paid from the gambling bank account by check made payable directly to the utility vendor, such as the electric association or gas company. The check may not be issued to a third party.
—OR—
Electronic transaction—Or, it may be paid by an electronic transaction from the gambling bank account directly to a bank account specified by the utility company. For each electronic transaction, the monthly gambling bank statement must provide the date, amount, payee’s name, and transaction number or payee’s account number.