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Can I offer contests that involve non-cash prizes in Rhode Island? What are the requirements?
Based on the documents provided, it appears that contests involving non-cash prizes are allowed in Rhode Island, but there may be certain requirements that must be met.
Requirements for Contests with Non-Cash Prizes
According to [4.2]" >RIGL 11-19-13, door prizes are exempt from certain regulations as long as they are distributed “purely incidental” to an event or if the entire net proceeds of the event are devoted to charity. However, the club, society, lodge, or association must obtain written permission for the distribution from the appropriate authority.
Additionally, [4.1]" >RIGL 11-19-1.1 allows certain committees and credit unions to conduct lotteries or raffles, respectively, with certain limitations.
It is important to note that while non-cash prizes may be exempt from state sales or use tax according to [1.1]" >RIGL 42-61-17 and [2.1]" >RIGL 42-61.2-10, they may still be subject to personal income tax laws.
Conclusion
Based on the documents provided, it appears that contests involving non-cash prizes are allowed in Rhode Island, but there may be certain requirements that must be met. It is recommended that you consult with a legal professional to ensure that your contest complies with all applicable laws and regulations.
Source(s):
- [1.1] Prizes exempt from taxation.
- [2.1] Prizes exempt from taxation.
- [4.1] Lotteries permitted.
- [4.2] Door prizes exempt.
Jurisdiction
Rhode Island