§ 1001.5. Administration and distribution of moneys held by licensed gaming entities, certificate holders and the Commonwealth.
(a) Application of section. This section applies to the collection of tax, the collection of other assessments and all transfers of moneys to and from the General Fund, State Gaming Fund, Pennsylvania Gaming Economic Development and Tourism Fund, Pennsylvania Race Horse Development Fund and any other fund as specified in this chapter.
(b) Deposits and transfers of gross table game revenue to Treasury by certificate holders.
(1) Certificate holders shall make computations of table game revenue in accordance with section 13A62 of the act (relating to table game taxes), on a daily basis and report the computed amount to the Department on a weekly basis on the form and in the manner prescribed by the Department.
(2) A deposit is required to be made at the time the report is submitted to the Department into the Department’s collection account established to collect the taxes and assessments.
(c) Deposits and transfers to Treasury by licensed gaming entities.
(1) The Department will notify each licensed gaming entity, Treasury and Office of the Budget of the actual amount each licensed gaming entity shall be required to deposit with Treasury as calculated by the CCS in accordance with sections 1323, 1403 and 1405—1407 of the act. A licensed gaming entity shall make deposits with Treasury after receipt of the Department’s notice to the licensed gaming entity and by the date and times specified by the Department.
(2) Payments shall be electronically transferred by the licensed gaming entities and available to the Commonwealth by the deadline established by the Department. Moneys shall be deposited in the Department’s Collection Account.
(3) System problems or failures, such as power outages and states of emergency, will not excuse the licensed gaming entity from making the required deposits in a timely manner. The licensed gaming entity shall immediately notify the Department and the Board of any of these problems.
(4) The Department will maintain records of deposits to the Department’s Collection Account under this chapter and will share information, as practicable, to assist Treasury in its reconciliation of deposits into its Concentration Account.
(5) The administration of assessments will be as follows:
(i) Proration of assessment. Upon imposition of the annual minimum distribution amount, as specified in section 1403(c)(3) of the act (relating to establishment of State Gaming Fund and net slot machine revenue distribution), regardless of whether the minimum is subject to the budgetary limitations of section 1403 of the act, the required minimum shall be prorated for that portion of the municipality’s fiscal year that the Board determines that the licensed gaming entity was actually in operation.
(ii) Limitation of assessment. Upon imposition of the minimum distribution upon the licensed gaming entity, the required minimum shall be paid in accordance with the administrative procedures of this section.
(6) The Department reserves the right, upon notice served upon the licensed gaming entity and the Board, to temporarily disable the licensed gaming entity’s slot machines through the CCS until the Department receives verification that the required deposit has been made.
(d) Distributions of local share assessments.
(1) Distributions of local share assessments to municipalities. If a licensed gaming entity and certificate holder fails to reach the requisite annual minimum distribution as required under the act within 15 days following the end of the municipality’s fiscal year, the Department will notify the licensed gaming entity and certificate holder of the shortfall and the amount to be remitted. A licensed gaming entity and certificate holder shall remit the difference required to meet the requisite annual minimum distribution as required under the act within 15 days following the end of the municipality’s fiscal year. The licensed gaming entity and certificate holder shall remit the required payment to the Department for distribution in accordance with sections 1403(c)(3) and 13A63(c) of the act (relating to establishment of state gaming fund and net slot machine revenue distribution; and local share assessment). Distributions specified in this chapter shall be made by the licensed gaming entity and certificate holder to the Department, no later than 15 days from the Department’s notice of the shortfall.
(2) Distributions of local share assessments to counties. The Department will make distributions in accordance with sections 1403(c)(2) and 13A63(b) of the act. If the minimum distribution exceeds the applicable annual municipal allocation cap in section 1403(c)(3) of the act, the amount in excess of the municipal allocation cap shall be distributed by the Department in accordance with section 1403(c)(2) of the act.
Source The provisions of this § 1001.5 corrected July 14, 2006, effective July 1, 2006, 36 Pa.B. 3450; amended July 20, 2007, effective July 21, 2007, 37 Pa.B. 3410; amended December 31, 2010, effective January 1, 2011, 41 Pa.B. 41. Immediately preceding text appears at serial pages (328800) and (341505).
Notes of Decision Pre-enforcement Challenge
Commonwealth court lacked original jurisdiction to consider pre-enforcement challenge to tax assessment and there was adequate administrative remedy to consider assessment regulations. Sands Bethworks Gaming v. Dep’t of Revenue, 958 A.2d 125, 131-132 (Pa. Cmwlth. 2008)
Cross References This section cited in 61 Pa. Code § 1001.6 (relating to administration of amounts deposited by licensed gaming entities and certificate holders with Treasury to pay Commonwealth gaming related costs and expenses); and 61 Pa. Code § 1001.8 (relating to State Gaming Fund transfer).
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