Code of Massachusetts Regulations › 930 CMR - STATE ETHICS COMMISSION › Title 930 CMR 5.00 - Exemptions From M.g.l.c. 268a And M.g.l.c. 268b Related To Gifts › Section 5.05 - Substantial Value; How Determined

Current through Register 1525, July 5, 2024
Substantial value is $50 or more. The value of a gift is its fair market value at the time of the gift, cost, or face value, whichever is greater. In determining substantial value, the Commission may aggregate all gifts offered or given by a person as defined in 930 CMR 5.04 to a public employee within any 365 day period. If a gift is given to multiple recipients, the value to each public employee shall be the total value of the gift divided by the number of recipients. To determine the value of attendance at an event, the Commission will consider the admission fee, or ticket price, or per person cost to the sponsor, or will divide the actual cost of the event by the number of attendees. The actual cost of an event includes the per person cost of refreshments, entertainment, taxes, service charges, and tips. The actual cost of an event also includes overhead charges for the room and service when these are part of a set fee per person for the event, but does not include any extra fee or charge paid by the host to rent the event venue. Where the Commission has determined the value to a public employee of attendance at an event by dividing the actual cost by the number of attendees, the presumption that an attendee received a gift with a value that is a proportional share of the actual cost of an event may be rebutted as to a particular individual by evidence that the cost of the items ordered or consumed by that individual and any guests, plus tip, was less than $50.
Example
: The face value of a ticket to a sporting event is $30 but the giver paid $100. The value of the ticket is $100, and it is a gift of substantial value.
Example
: The face value of a ticket to a concert is $40, but due to the scarcity of such tickets, the fair market value is $500 at the time of the gift. The value of the ticket is $500, and it is a gift of substantial value. A person who is given the opportunity to purchase, and does purchase, the ticket at face value has received a gift of $460, which is of substantial value.
Example
: The fair market value of meals and entertainment at a charitable event is $40, but the face value or cost of a ticket to the event is $150. The value of the ticket is $150, and it is a gift of substantial value.
Example
: The total cost, including tax and tip, for a dinner for ten people is $750. Each public employee attending the dinner is presumed to have received a $75 dinner, which is of substantial value. This presumption may be rebutted as to a particular individual by evidence that the cost of the items ordered or consumed by that individual and any guests, plus tip, was less than $50.
Example
: There is no admission charge to an event but the estimated per person cost of food and drink is $90. The presumed value of the admission is $90, and of substantial value. This presumption may be rebutted as to a particular individual by evidence that the cost of the items ordered or consumed by that individual and any guests, plus tip, was less than $50.
Example
: The host of an event pays a set fee of $75 per person for a catered event. The $75 per person cost includes all refreshments, taxes, service charges, and the rental of the banquet hall. The value of attendance to each attendee is $75, and it is a gift of substantial value.
Example
: A company plans a training event to which public employees will be invited. The company pays a fee to rent an auditorium where the training will be held, and separately pays for refreshments to be served during the day. The value of attendance to the public employees who attend is determined by dividing the cost of the refreshments by the number of attendees. The auditorium rental fee is not included.