What bingo-paper standards did South Carolina Revenue Ruling 99-13 require beginning January 1, 2000?

Plain-English summary

South Carolina Revenue Ruling 99-13 established the Department of Revenue's bingo-paper controls beginning January 1, 2000. The Department explained that bingo paper was evidence that bingo tax had been paid, so its face value, serial numbers, sales path, and state identification had to be controlled.

The ruling replaced the color-coded-paper system in RR 97-11. Existing color-coded supplies bought before January 1, 2000 could be used only until they were depleted or March 31, 2000, whichever came first. After March 31, using or selling that paper for a South Carolina nonprofit bingo operation was treated as unauthorized and exposed the parties to applicable Bingo Act and Title 12, Chapter 54 penalties.

RR 14-3 later expressly superseded RR 99-13 effective July 1, 2014. The requirements below describe the historical 2000 standard, not the current rule.

Required face value and serial controls

Each card on a bingo sheet had to state the sheet's dollar face value. The ruling's example was “3 on $1” for a sheet containing three cards and selling for one dollar.

All sheets in a prepackaged package needed a common serial number, and all paper in a manufacturer's box had to carry the same serial number. Manufacturers had to use consecutive serial numbers and could not duplicate a number until all available serial numbers had been used.

Complete-set sales

A distributor had to sell paper in sets of 9,000, or another set size approved by the Department. The entire set had to be sold at one time, on one invoice, to the same licensed organization. A distributor could not split a set among organizations or spread a set's sale over multiple invoices or periods.

South Carolina emblem and licensed sales chain

Paper sold to licensed South Carolina bingo operators had to carry an approved outline of South Carolina in the free space on each sheet. Licensed South Carolina manufacturers could sell emblem-bearing paper only to licensed South Carolina distributors, and those distributors could sell it only to licensed South Carolina bingo organizations or promoters.

The ruling allowed licensed manufacturers and distributors to sell old color-coded paper after March 31, 2000 only to out-of-state bingo operations for use outside South Carolina, if the other jurisdiction permitted it.

Common questions

Q: Could a distributor divide one approved set among several bingo organizations?

A: No. The complete set had to go to one licensed organization at the same time and on the same invoice.

Q: Could South Carolina operators keep using old color-coded bingo paper?

A: Only temporarily. Supplies purchased before January 1, 2000 could be used until depleted or March 31, 2000, whichever came first. In-state use after March 31 was treated as unauthorized.

Q: Could an organization obtain a refund for unused color-coded paper?

A: The ruling said licensed nonprofit organizations could return unused color-coded bingo paper to the Department for a refund under Section 12-21-4210.

Q: Are these still South Carolina's current bingo-paper standards?

A: No. RR 14-3 expressly superseded RR 99-13 effective July 1, 2014. Businesses and nonprofit organizations should consult the later ruling and current Department requirements.

Citations and references

• S.C. Code Ann. § 12-21-4220 (Department authority to set bingo-paper standards)
• S.C. Code Ann. § 12-21-4210 (refund for returned unused bingo paper)
• SC Revenue Ruling #97-11 (the color-coded-paper guidance superseded by RR 99-13)
• SC Revenue Ruling #14-3 (expressly superseded RR 99-13 effective July 1, 2014)

Subject

Bingo Paper Standards

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR99-13.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.dor.state.sc.us

SC REVENUE RULING #99-13

SUBJECT:

Bingo Paper Standards
(Bingo)

EFFECTIVE DATE:

January 1, 2000

SUPERSEDES:

SC Revenue Ruling #97-11 and all previous documents and
any oral directives in conflict herewith.

REFERENCES:

S. C. Code Ann. Section 12-21-4220 (Supp. 1998)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (Supp. 1998)
SC Revenue Procedure #97-8

SCOPE:

A Revenue Ruling is the Department of Revenue’s official
advisory opinion of how laws administered by the
Department are to be applied to a specific issue or a specific
set of facts, and is provided as guidance for all persons or a
particular group. It is valid and remains in effect until
superseded or modified by a change in the statute or
regulations or a subsequent court decision, Revenue Ruling or
Revenue Procedure.

Bingo Paper Standards
The Bingo Act of 1996 (Code Section 12-21-4220) requires the Department of Revenue
to set bingo paper standards. The bingo paper is critical to the administration of the
Bingo Act, as the bingo paper will be evidence of the payment of bingo tax.
Therefore, the department will accept bingo paper meeting the following standards for
use in South Carolina.

Bingo Paper Standards:
!

The dollar face value of a bingo sheet must be printed on each card of the sheet.
For example, if a sheet contains 3 cards and the sheet is sold for $1, then each card
on the sheet must state the dollar face value as “3 on $1.” This means that the card
is one of three cards contained on the sheet and that the sheet sells for $1.

!

Any prepackaged paper must have a common serial number for all the sheets in the
package.

!

All paper in a box from the manufacturer to distributor must have the same serial
number. A distributor must sell paper in sets of 9,000 or any other sets approved
by the department. A distributor must sell an entire set at the same time, on the
same invoice, to the same individual licensed organization. The distributor can not
sell partial sets to different organizations, nor can they sell a set over several
invoices or periods of time.

!

Serial numbers used by the manufacturer must be consecutively numbered, and the
numbers can not be duplicated until all available serial numbers are used. All
paper sold to licensed South Carolina bingo operators will have a state emblem, as
shown below, printed on the face of each sheet. This emblem will be the outline
of the state of South Carolina and will be placed in the free space. The design and
placement of this emblem will be approved by the department. Licensed South
Carolina manufacturers are allowed only to sell paper with our emblem to licensed
South Carolina distributors. These distributors may only sell this paper to licensed
South Carolina bingo organizations or promoters.
Distributors, promoters and nonprofit organizations may continue to sell or use the

!

color coded bingo paper (as authorized by SC Revenue Ruling #97-11) that was
purchased prior to January 1, 2000 until the earlier of the depletion of such
supplies or March 31, 2000.

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!

After March 31, 2000, color coded bingo paper cannot be used by any bingo
operation in South Carolina. The sale of color coded bingo paper to, or use of
color coded bingo paper by, any nonprofit bingo operation in South Carolina after
March 31, 2000 will be considered the sale or use of unauthorized bingo paper and
subject to the applicable penalties provided in the Bingo Act of 1996 and Chapter
54 of Title 12.

!

After March 31, 2000, licensed manufacturers and licensed distributors may sell
color coded bingo paper to bingo operations located outside the state of South
Carolina for use solely outside South Carolina if the sale of such bingo paper is
permitted in that jurisdiction.

!

In accordance with the provisions of Section 12-21-4210, licensed nonprofit
organizations may return any unused color code bingo paper to the department for
a refund.

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Elizabeth A. Carpentier
Elizabeth A. Carpentier, Director
Columbia, South Carolina
December 6
, 1999

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