Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I offer contests that involve merchandise prizes in West Virginia? What are the requirements?

Offering Contests with Merchandise Prizes in West Virginia

Yes, you can offer contests that involve merchandise prizes in West Virginia. However, there are certain requirements that you must follow.

According to West Virginia Code §47-21-1, a raffle is defined as “the selling of tickets or chances to win a prize awarded through a random drawing.” To conduct a raffle in West Virginia, you must possess a valid raffle license at the time of the raffle occasion, and the license must be present throughout the duration of any and all occasions that the licensee sponsors [2.2].

Valuation of Prizes

Prizes must be valued at fair market value at the time of acquisition for the raffle or at the time of purchase [1.1][2.1]. Prizes may be money, real or personal property, or merchandise other than beer, wine, spirits, or alcoholic liquor [2.1].

Raffle License

To obtain a raffle license, you must file an application with the West Virginia State Tax Department and pay a license fee of $25 [2.2]. If you plan to hold a raffle at the West Virginia State Fair, you must first obtain a charitable raffle license from the State Fair Board and pay a license fee of $500 [2.3].

Raffle Equipment

A licensee may only use raffle equipment that it owns, which it borrows without compensation from another licensee, or which it leases from another licensee for a reasonable and customary amount. The rental or purchase of raffle equipment shall be considered a reasonable and necessary expense [2.4].

Transporting Raffle Boards or Games

If you transport charitable raffle boards or games upon the public highways, waterways, airways, roads, or streets of West Virginia, you must have in your actual possession invoices or delivery tickets for such charitable raffle boards or games [4.1].

State Fair Raffle License

The West Virginia State Fair Board may apply annually to the Tax Commissioner for a state fair raffle license to provide for the conduct of raffle occasions at the state fair. The provisions of sections eleven, twelve, fourteen, fifteen, and twenty-six of this article do not apply to a state fair raffle license [1.3].

Summary

To offer contests that involve merchandise prizes in West Virginia, you must possess a valid raffle license, assign fair market value to the prizes, and follow the rules and regulations governing the holding of raffle occasions in West Virginia.

Source(s):
Jurisdiction

West Virginia