CARNAHAN LISTENS TO THE PEOPLE, REPEALS TAX ISSUE ON BINGO

Charities across the state, many of which depend upon bingo revenue to help finance their activities, were indirectly boosted last week as Gov. Mel Carnahan signed legislation repealing last year's tax increase on bingo games. The tax had more than doubled the state's share of gambling receipts, taking money mandated to charitable, religious and philanthropic purposes and shifting it to state purposes.

Gov. Carnahan and the state legislature deserve credit for listening to the protests and reversing themselves on this issue.

Bingo games are operated on thin margins by civic-minded citizens who funnel the net proceeds to charity. Under Missouri law, games can be conducted only by licensed charitable, fraternal, religious, service and veterans organizations. Many of these host organizations indicate their net proceeds -- money for local charities, scholarships and youth programs -- were drastically reduced by the now-repealed law.

"The law increased the taxes we paid every month on bingo games from about $800 to $2,000," said Ray Drury, a member of the Elk's Lodge, which hosts bingo games every Wednesday.

Multiply this typical monthly loss by the many not-for-profit organizations that sponsor bingo games in the area, and the tens of thousands of dollars lost from our region become apparent.

Gov. Carnahan and the legislature not only repealed the tax increase. They also changed the way the taxes will be collected. The new law, to take effect at the beginning of next year, will replace the current receipts tax with a tax on bingo cards to be paid by the supplier. This should make for better accounting.

In all, the tax repeal and new tax procedure indicate a state government that has, if belatedly, listened to the people.