Gambling on gambling tax revenues

Under the State House Dome, Tom Fahey looks at the difficulties the Department of Revenue Administration has in collecting the newly passed tax on gambling winnings:

Last Sunday, Revenue Administration Commissioner Kevin Clougherty downplayed worries that a gambling tax will be tough to administer. It's hooked to the federal system, and will be collected and audited as such, he said.

But his office has asked the Attorney General's Office for its opinion on some aspects of the tax law. High on the list is whether the law requires taxes on gambling winnings for the entire year, back to Jan. 1.

Assistant Commissioner Margaret Fulton said the issue is that the tax law states, "Taxable income is income that is received from gambling winnings during the calendar year."

Another question involved those lucky folks who win big lottery prizes and take their winnings as annuities over 20 years. Does the jackpot count as a one-time gain, or is each annual payment a separate gambling win? (more)

This is what happens when lawmakers slap half-crafted taxes into a budget just before deadline. All of these questions could have been answered during a public hearing and public debate on the new tax. But the Conference Committee needed the money to pay for their spending increases.