Relative to exemptions for small charities for tax upon raffle proceeds
Impact
If enacted, this bill would modify Section 7A of Chapter 271 of the General Laws, which currently imposes taxes on proceeds from raffles. The proposed amendment introduces a threshold, meaning only proceeds over $12,000 would be taxable. This change could significantly benefit small charities that often operate with limited resources and may struggle to cover the costs imposed by existing tax laws on their fundraising income. It is expected to enhance their capacity to fund community initiatives and support various charitable outreach efforts.
Summary
House Bill 3023 seeks to amend existing tax laws concerning small charities in Massachusetts by providing an exemption for tax on raffle proceeds that exceed $12,000. The bill is presented by Representative Bruce J. Ayers and aims to alleviate financial burdens on smaller charitable organizations that rely on fundraising activities like raffles to support their missions. By allowing these entities to retain more of their proceeds, the bill promotes charitable activities within communities and aims to strengthen local charity efforts.
Contention
While the bill has the potential to positively impact small charities, there may be discussions around the implications of setting a tax-free threshold. Critics may argue that defining the exemption threshold could create disparities in fundraising capabilities between larger and smaller organizations. Additionally, considerations regarding the potential loss of tax revenue for the state could also be a point of contention during legislative discussions. Advocates for the bill will need to address these concerns to gain broader support.