Licensing and regulating tip jars makes sense for everyone, non-profit clubs included
We saw the news story about Allegany County’s non-profit clubs voting unanimously that they would not support a tax on tip jars. And we’re right there with them - we don’t want to pay taxes, either. But the reality is we have to. And local clubs might want to re-think their stand on the tax and regulation of tip jars, most notably because that lack of control has led to rampant illegal gambling activities throughout the county. The clubs and civic organizations that run tip jars do so to subsidize their non-profit activities. The numerous privately owned restaurants and bars that offer tip jars do so to pad their pockets. This difference alone should give people pause. If the process were controlled, it would be much easier to stem the tide of illegal gambling that goes on, while increasing the take at organizations where the gaming is legitimate. It’s working in other counties, and it could work here. Washington County is a perfect example. Not only does regulation help those organizations legitimately offering tip jar gaming, it also helps fill out county coffers. The average $2.4 million Washington County collects through its tip jar regulations every year is used to fund its fire and rescue squads, as well as other non-profit charitable operations. It works this way: 50% of the funds collected go into the fire and rescue association fund, while the other %50 goes into a fund overseen by the county’s Gaming Commission. Twice each year, non-profit charitable organizations may apply for money for specific projects. That $2.4 million is a real boon to Washington County residents. A similar regulatory program in Allegany County would do much for our county and municipal budgets as well. Consider, if you will, what that money could do for our fire and rescue squads, or what it could mean to our schools. In Washington County, anyone who holds a liquor license can operate tip jars, though for profit restaurants and bars pay much higher rates on the amounts they take in (non-profit organizations pay 14% on their take; privately owned bars and restaurants 50%). However, to give Allegany County’s non-profit clubs a boost, and to limit the amount of gambling that goes on here, perhaps Allegany County could consider limiting tip jars to non-profit clubs. Or it could simply apply Washington County’s system here, and charge a much higher rate to privately owned entities wishing to operate tip jars. How a system is set up is open to discussion. But what we need to acknowledge is that this process needs to be regulated and controlled. That would be good for everybody.
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