Ala. Track Fights Tax on Revenue From Charity-Operated Bingo Machines

An Alabama dog track is fighting a $75-million state bill for taxes and interest on electronic-bingo proceeds, arguing in part that the bingo machines were licensed by charities, the Associated Press writes.

The state Revenue Department is seeking the money from Greenetrack for taxes not paid on bingo revenue from 2004 to 2008.

The rural track 85 miles from Birmingham no longer hosts live dog racing and bases its business on simulcasts and the bingo machines, which were seized last year in a raid by a state gambling committee that contended they were illegal slot machines.

Lawyers for the track argue that state law does not allow sales tax to be collected on electronic-bingo receipts and that Greenetrack is not liable because the machines were licensed to charities, which paid the track to operate them on its property.

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