Title 58—RECREATION PENNSYLVANIA GAMING CONTROL BOARD [ 58 PA. CODE CH. 521 ] Table Game Taxes and Gross Table Game Revenue; Temporary Regulations [40 Pa.B. 3509]
[Saturday, June 26, 2010]The Pennsylvania Gaming Control Board (Board), under its general authority in 4 Pa.C.S. § 1303A (relating to temporary table game regulations) enacted by the act of January 7, 2010 (P. L. 1, No. 1) (Act 1) and the specific authority in 4 Pa.C.S. §§ 1103 and 1362A (relating to definitions; and table game taxes), adopts a temporary regulation in § 521.10 (relating to table game taxes and gross table game revenue) to read as set forth in Annex A. The Board's temporary regulations will be added to Part VII (relating to Gaming Control Board) as part of Subpart K (relating to table games).
Purpose of the Temporary Rulemaking
This temporary rulemaking adds provisions regarding the weekly payment of the tax on table game revenues to the Department of Revenue (Department) and the calculation of gross table game revenue.
Explanation of Amendments to Chapter 521
Section 521.10 echoes the requirement in Act 1 which requires certificate holders to pay the tax on table game revenue to the Department on a weekly basis on forms prescribed by the Department.
In addition, it sets forth the procedures for calculating gross table game revenue for the following: all banking table games including electronic gaming tables which are not fully automated electronic table games; nonbanking table games (that is, Poker); fully automated electronic table games; and contests or tournaments.
It also repeats the items that a certificate holder may deduct from the calculation of gross table game revenue that are included in Act 1.
Affected Parties
Act 1 prescribes what taxes a certificate holder is required to pay on table game revenue. Because this temporary rulemaking is consistent with the requirements of Act 1, this temporary rulemaking will not have additional fiscal impact on certificate holders.
Fiscal Impact
Commonwealth
The Board expects that this temporary rulemaking will not have direct impact on the Board or other Commonwealth agencies.
Political subdivisions
This temporary rulemaking will not have direct fiscal impact on political subdivisions of this Commonwealth. Eventually, host municipalities and counties will benefit from the local share funding that is mandated by Act 1.
Private sector
Because this temporary rulemaking is consistent with the requirements of Act 1, it will not impose additional costs on certificate holders beyond those imposed by Act 1.
General public
This temporary rulemaking will not have direct fiscal impact on the general public.
Paperwork Requirements
This temporary rulemaking and Act 1 require certificate holders to submit supporting documentation on forms prescribed by the Department with their weekly remittance of the tax on table game revenue.
Effective Date
This temporary rulemaking will become effective upon publication in the Pennsylvania Bulletin.
Public Comments
While this temporary rulemaking will be effective upon publication, the Board is seeking comments from the public and affected parties as to how this temporary regulation might be improved. Interested persons are invited to submit written comments, suggestions or objections regarding this temporary rulemaking within 30 days after the date of publication in the Pennsylvania Bulletin to Richard Sandusky, Director of Regulatory Review, Pennsylvania Gaming Control Board, P. O. Box 69060, Harrisburg, PA 17106-9060, Attention: Public Comment on Regulation #125-125.
Contact Person
The contact person for questions about this rulemaking is Richard Sandusky, Director of Regulatory Review at (717) 214-8111.
Regulatory Review
Under 4 Pa.C.S. § 1303A, the Board is authorized to adopt temporary regulations which are not subject to sections 201—205 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201—1205), known as the Commonwealth Documents Law (CDL), the Regulatory Review Act (71 P. S. §§ 745.1—745.12); and sections 204(b) and 301(10) of the Commonwealth Attorneys Act (71 P. S. §§ 732-204(b) and 732-301(10)). These temporary regulations expire 2 years after publication in the Pennsylvania Bulletin.
Findings
The Board finds that:
(1) Under 4 Pa.C.S. § 1303A, temporary regulations are exempt from the requirements of the Regulatory Review Act, sections 201—205 of the CDL and sections 204(b) and 301(10) of the Commonwealth Attorneys Act.
(2) The adoption of the temporary regulations is necessary and appropriate for the administration and enforcement of 4 Pa.C.S. Part II (relating to gaming).
Order
The Board, acting under 4 Pa.C.S. Part II, orders that:
(1) The temporary regulations of the Board, 58 Pa. Code Chapter 521, are amended by adding § 521.10 to read as set forth in Annex A.
(2) The temporary regulation is effective June 26, 2010.
(3) The temporary regulation shall be posted on the Board's web site and published in the Pennsylvania Bulletin.
(4) The temporary regulation shall be subject to amendment as deemed necessary by the Board.
(5) The Chairperson of the Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
GREGORY C. FAJT,
ChairpersonFiscal Note: 125-125. No fiscal impact; (8) recommends adoption.
Annex A Title 58. RECREATION PART VII. GAMING CONTROL BOARD Subpart K. TABLE GAMES CHAPTER 521. GENERAL PROVISIONS § 521.10. Table game taxes and gross table game revenue.
(a) The tax on table game revenue shall be payable to the Department on a weekly basis and must be based upon the gross table game revenue derived during the previous week reported on forms and in the manner prescribed by the Department.
(b) Gross table game revenue includes the following:
(1) The net revenue from all banking table games including electronic gaming tables which are not fully automated electronic table games.
(2) The net revenue from nonbanking table games.
(3) The net revenue from fully automated electronic table games.
(4) The net revenue from contests or tournaments.
(c) Net revenue from banking table games, including electronic gaming tables which are not fully automated electronic table games, must be the sum of the net revenue determined for each banking table game, which is not a fully automated electronic table game, individually. The net revenue for an individual banking table game which is not a fully automated electronic table game must be equal to:
(1) The ending inventory of gaming chips at the gaming table as reported on the Table Inventory Slip prepared in accordance with § 525.13 (relating to procedures for drops at open table games) for a table game that remained open for gaming activity when the table was being dropped at the end of the gaming day or the Table Inventory Slip prepared in accordance with § 525.14 (relating to procedures for closing table games) for a table game that was closed prior to the end of the gaming day, plus.
(2) The sum of all Credit Slips for the gaming table for that gaming day, plus.
(3) The total of the currency and Counter Checks collected from the drop box for that gaming table, minus.
(4) The inventory of gaming chips at the gaming table as reported on the Table Inventory Slip prepared in accordance with § 525.13 for a table game that remained open for gaming activity when the table was being dropped at the end of the previous gaming day or the Table Inventory Slip prepared in accordance with § 525.8 (relating to procedures for opening table games) for a table game that was opened during the gaming day, minus.
(5) The sum of all Fill Slips for the gaming table for that gaming day.
(d) Net revenue from nonbanking table games must be the sum of the net revenue determined for each nonbanking table game individually. The net revenue for an individual nonbanking table game must be equal to the Poker rake recorded in accordance with § 525.19 or § 525.20 (relating to procedures for opening, counting and recording the contents of table game drop boxes; and alternate procedures for collecting, distributing, opening, counting and recording the contents of nonbanking table game drop boxes).
(e) Net revenue from fully automated electronic table games must be the sum of the net revenue determined for each fully automated electronic table game individually. The net revenue for an individual fully automated electronic table game must be equal to:
(1) The amount recorded on the bill in meter for that gaming day, plus.
(2) The amount recorded on the voucher in-cashable/value meter for that gaming day, minus.
(3) The amount recorded on the coin out meter for that gaming day, minus.
(4) The amount recorded on the fully automated electronic gaming table paid progressive payout meter for that gaming day, minus.
(5) The amount recorded on the attendant paid progressive payout meter for that gaming day, minus.
(6) The amount recorded on the attendant paid jackpots meter for that gaming day, minus.
(7) The amount recorded on the attendant paid cancelled credits meter for that gaming day, minus.
(8) The amount recorded on the voucher out-cashable/value meter for that gaming day.
(f) Net revenue from contests or tournaments must be the sum of the net revenue determined for each contest or tournament individually. The net revenue for an individual contest or tournament must be equal to:
(1) The sum of all entry fees, buy-ins, re-buy-ins and administrative fees imposed by the certificate holder on the contest or tournament participants, minus.
(2) The cash paid by the certificate holder to the contest or tournament winners as prizes, minus.
(3) The actual cost paid by the certificate holder for noncash prizes awarded to the contest or tournament winners.
(g) If the net revenue from a contest or tournament results in a loss, that loss may not be deducted from the calculation of gross table game revenue.
(h) Gross table game revenue may not include:
(1) Counterfeit cash or counterfeit value chips.
(2) Coins or currency of other countries that is not readily convertible to cash.
(3) Cash taken in a fraudulent act perpetrated against a certificate holder for which the certificate holder is not reimbursed.
[Pa.B. Doc. No. 10-1160. Filed for public inspection June 25, 2010, 9:00 a.m.]
