Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 316 - NEBRASKA DEPARTMENT OF REVENUE › Chapter 35 - CHARITABLE GAMING; ART. 6 COUNTY/CITY LOTTERY › LOTTERY BY PICKLE CARD › Section 316-35-314 - EXPENSES

Current through June 17, 2024
314.01 A Class II
				  pickle card licensee may not allow more than 30 percent of the definite profit
				  from each pickle card unit sold as commission to the pickle card operator. The
				  pickle card operator's commission must be deducted from the definite profit of
				  each pickle card unit sold in determining the amount to be paid by the pickle
				  card operator to the licensed organization. That amount must be paid by check
				  by the operator in advance of or at the time of delivery of the pickle card
				  unit from the organization to the operator.
314.02 All licensed organizations conducting
				  a lottery by the sale of pickle cards may not spend more than 12 percent of the
				  definite profit from a pickle card unit to pay the allowable expenses of
				  operating the lottery by the sale of pickle cards. Pickle card operators'
				  commissions and unit cost are not included within the definition of allowable
				  expenses.
The following types of expenses are included within the 12
					 percent expense limitation:
314.02A
				  All costs associated with the purchasing, printing, or manufacturing of any
				  items to be used or distributed to participants in the lottery by the sale of
				  pickle cards, such as the cost of pickle card dispensing devices and racks if
				  used by the licensed organization and not rented to a pickle card operator for
				  fair market value;
314.02B Shipping
				  or delivery charges incurred by the organization for delivery of pickle card
				  units to licensed pickle card operators or any shipping or delivery costs on
				  pickle card units received from a distributor which were not billed by the
				  distributor as part of the unit cost;
314.02C All office expenses including, but
				  not limited to, the cost of office supplies and bookkeeping materials, sales
				  invoices, receipt books, postage costs, copying expenses, telephone costs,
				  office equipment, and any other related office expenses incurred which are
				  directly related to the operation of the lottery by pickle card
				  activity;
314.02D Promotional
				  expenses such as advertising; any federal gaming license for the organization,
				  any pickle card dispensing device registration fee for the organization, any
				  pickle card dispensing device repairs or maintenance paid by the organization,
				  and any other costs incurred which are directly related to the promotion of the
				  lottery by pickle card activity;
314.02E All salaries paid to persons to
				  operate the lottery by the sale of pickle cards, such as salaries, or wages
				  paid to individuals involved with the operation of the pickle card activity,
				  including bookkeepers and other office staff, utilization of funds members,
				  sales agents, whether commissioned or salaried, officers or managers of the
				  organization who are paid for their participation in the pickle card activity,
				  and any other related salaries or wages;
314.02F Any rental or lease expense for real
				  or personal property used and directly related to the operation of the pickle
				  card activity, such as office or storage space rental, office equipment rental,
				  car rental, and pickle card dispensing device rental; and
314.02G Any fee paid to any person associated
				  with the operation of any lottery by the sale of pickle cards, such as fees to
				  consultants, attorneys, fundraisers, and other professionals for services
				  performed which are directly related to the organization's pickle card
				  activities. This includes payments to an individual, firm, or corporation with
				  whom the licensed organization contracts for services relating to the operation
				  of the lottery by the sale of pickle cards. This also includes any commission
				  or fee paid to a sales agent and any reasonable and necessary expense for which
				  a sales agent is reimbursed.