Ariz. Admin. Code § R15-7-228 - Conditions for Deducting Mortgage Payments

A. A licensee may deduct mortgage payments from adjusted gross receipts for only one premises if the mortgage payments are a reasonable and bona fide expense under A.R.S. § 5-107(G). If there are multiple owners conducting games on the same premises, the owners shall prorate the mortgage payment deduction among themselves, based on the owners' percentage of use of the premises.

B. If no mortgage exists, taxes and insurance are considered on-going expenses of the organization and the licensee shall not deduct taxes and insurance from bingo adjusted gross receipts. The licensee may deduct taxes and insurance from bingo net proceeds.

C. A licensee shall purchase any premises on which the licensee intends to conduct bingo for a commercially reasonable purchase price. If the Department questions the reasonableness of the purchase price, the Department shall obtain an appraisal of the premises. The licensee may obtain and submit an independent appraisal by a certified appraiser that the Department shall consider in conjunction with the Department's appraisal.

Notes

Ariz. Admin. Code § R15-7-228

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).