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Emailed PA Dept. of Revenue and got an answer for PA residents - It's 100% legal to win the prize. The federal tax money would be included as income tax on the total prize worth (3.07% of $147,180 or $4518.43) and the sales tax would be calculated on the fair market value of the vehicle (6% of $103,000 or $6180). ***I am no tax person so don't rely on my numbers*** you'd still pay around $5,698 but depending on your tax situation you could get a refund to cover all or most with the $7500 federal tax credit and last time I checked we still had the state EV incentive, which is a check for $2000 so if you don't break even, you'll be pretty darn close AND you get a kick ass car out of it.
I emailed the Dept. of Revenue yesterday afternoon with my question and a link to the raffle and surprisingly got an answer before noon today. If anyone is curious about their state it seems the Dept. of Revenue is the place to ask.
I emailed the Dept. of Revenue yesterday afternoon with my question and a link to the raffle and surprisingly got an answer before noon today. If anyone is curious about their state it seems the Dept. of Revenue is the place to ask.
What @wdolson said. 
There are a lot of rules (apparently in most? all?) states about who can set up a raffle *based* in that state. In MA, not only are there state laws that apply, there are further regulations developed by the MA Attorney General. *And* you must apply for a permit from the *town* where the organization is holding the raffle. A lot of care is taken by to make sure that anyone setting up a raffle is known, will be tracked, and is made aware of all the rules and regs that apply.
Purchasing and/or winning a raffle ticket: not so much.
For example, in MA, the law does not appear to require the ticket purchaser to be an adult. However, for our raffle, we insist on a minimum of 18 years of age for purchase (although we allow a purchaser to buy a ticket on behalf of a minor). We also require the purchaser to be a US resident or citizen, not out of a requirement in MA or US law, but because the complications of awarding the Prizes to people who live elsewhere are just too great. Especially the Grand Prize's "No Pain" feature where we pay a ton o' taxes!
And while I, too, have never heard of anyone getting into trouble from winning a raffle, either in-state or out-of-state, neither do I wish for our raffle or our Winners to be the first to do so. So while I think we're behaving responsibly and that purchasers so far are not at risk, at the end of the day, if you're really worried about this, either (a) don't buy or (b) consult an attorney licensed in your state or (c) if you've already bought a ticket and get cold feet, I'll fully refund it for you including transaction fees (as I already did earlier today for @ItsNotTheMoney).
Alan
There are a lot of rules (apparently in most? all?) states about who can set up a raffle *based* in that state. In MA, not only are there state laws that apply, there are further regulations developed by the MA Attorney General. *And* you must apply for a permit from the *town* where the organization is holding the raffle. A lot of care is taken by to make sure that anyone setting up a raffle is known, will be tracked, and is made aware of all the rules and regs that apply.
Purchasing and/or winning a raffle ticket: not so much.
For example, in MA, the law does not appear to require the ticket purchaser to be an adult. However, for our raffle, we insist on a minimum of 18 years of age for purchase (although we allow a purchaser to buy a ticket on behalf of a minor). We also require the purchaser to be a US resident or citizen, not out of a requirement in MA or US law, but because the complications of awarding the Prizes to people who live elsewhere are just too great. Especially the Grand Prize's "No Pain" feature where we pay a ton o' taxes!
And while I, too, have never heard of anyone getting into trouble from winning a raffle, either in-state or out-of-state, neither do I wish for our raffle or our Winners to be the first to do so.
So while I think we're behaving responsibly and that purchasers so far are not at risk, at the end of the day, if you're really worried about this, either (a) don't buy or (b) consult an attorney licensed in your state or (c) if you've already bought a ticket and get cold feet, I'll fully refund it for you including transaction fees (as I already did earlier today for @ItsNotTheMoney).Alan
Interestingly, if you add a link in facebook [because if you aren't gonna win it might as well be a friend, right?] the thumbnail options that pop up do not include the Model S. I'm sure this has something to do with how the images are displayed on the website and how facebook picks 'em up, but I'm a baseline end-user type, so... Look! A suite of battery operated lawn care equipment! Not a bad third prize at all.
@ajay,
Thank you for reporting this! We'll follow up and fix. OK, the over-worked web designer will follow up and fix.
Thanks,
Alan
Thank you for reporting this! We'll follow up and fix. OK, the over-worked web designer will follow up and fix.
Thanks,
Alan
Half Dollar Bill
Traveller, teacher, poet, accountant, innkeeper
Alan,
Are you going to post when you've sold more than the 867 tickets to award the grand prize? Or put a counter on the raffle site?
If you sell the 2,000 tickets before 12/31, are you going to draw early or do you have to wait until 12/31?
Are you going to post when you've sold more than the 867 tickets to award the grand prize? Or put a counter on the raffle site?
If you sell the 2,000 tickets before 12/31, are you going to draw early or do you have to wait until 12/31?
It can be legal, but even for non-profit organizations large raffles have to be approved, the licensing only mentions dollar amount up to $75,000, and the statutes specifically mention that out-of-state games of chance are not made legal in Maine by virtue of being legal Federally or in another state, and the statutes define unlawful as not allowed by statute. Maybe it's legal, but the laws seem to point the other way.
Maybe next time I'll have to attend Alan's party in person and buy a raffle ticket there.
Hi, @HalfDollarBill,
I literally don't know what we might do with the raffle sales info. You can imagine that it's an active topic of conversation. Purchasing is happening from MA as well as many other states. My current favorite is one from Alaska -- no one I know, but if that person wins, I'm awful tempted to buy an air ticket and go out for the delivery. I'll even personally go to Maine if anyone wins there.
As for ending the drawing early due to selling out... while we reserve the right to do so, and suspect that we may sell out early, I think we're inclined to wait for the drawing until 12/31. The plan is that the drawing will be held during an event at our home, just as we launched the raffle at an event at our home. Unlike the launch, which happened in conveniently beautiful weather, we may have to figure out a different way for the drawing. An indoor/outdoor event at our Boston-area home on December 31 seems unwise... indoor only seems a much better bet. We're thinking (a) live-streaming the drawing and (b) taking a poll of ticket holders to see who would want to come to the event. If that's less than roughly 120, I think we're all set. If >120, we would have to see who is really serious about attending. The rules of the raffle make it clear that all ticket holders are entitled to attend, although attendance is NOT a prerequisite for winning. If >120 were serious about attending, we might have to find a different venue within the geographical confines of Wellesley.
Thanks,
Alan
I literally don't know what we might do with the raffle sales info. You can imagine that it's an active topic of conversation.
Purchasing is happening from MA as well as many other states. My current favorite is one from Alaska -- no one I know, but if that person wins, I'm awful tempted to buy an air ticket and go out for the delivery. I'll even personally go to Maine if anyone wins there. As for ending the drawing early due to selling out... while we reserve the right to do so, and suspect that we may sell out early, I think we're inclined to wait for the drawing until 12/31. The plan is that the drawing will be held during an event at our home, just as we launched the raffle at an event at our home. Unlike the launch, which happened in conveniently beautiful weather, we may have to figure out a different way for the drawing. An indoor/outdoor event at our Boston-area home on December 31 seems unwise... indoor only seems a much better bet. We're thinking (a) live-streaming the drawing and (b) taking a poll of ticket holders to see who would want to come to the event. If that's less than roughly 120, I think we're all set. If >120, we would have to see who is really serious about attending. The rules of the raffle make it clear that all ticket holders are entitled to attend, although attendance is NOT a prerequisite for winning. If >120 were serious about attending, we might have to find a different venue within the geographical confines of Wellesley.
Thanks,
Alan
JenniferQ
Active Member
This is one of the many things I'm enjoying about becoming an EV and especially Tesla owner. I'm in for 4. My struggling sister really needs a new car, but my hubby may fight her for it after driving my new P90D!
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Oh, and is the raffle price tax ded since ClimateXChange is a 501c? Assuming I don't win!
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Oh, and is the raffle price tax ded since ClimateXChange is a 501c? Assuming I don't win!
Nope. You "get something" in exchange. The 250 isn't deductible. (Alan spelled it all out)
Jennifer! J'adore!(*) Thank you!!
Raffle is NOT sadly NOT repeat NOT tax deductible! Oh how I wish it were. But this is not even close to debatable. There's an IRS regulation, bolstered by some rulings, that a raffle ticket purchase is not a gift and therefore not deductible. You are purchasing something of value, i.e., the chance at a prize (in this raffle, 6 prizes). So even though CXC is eligible under 501c3 rules (currently via its fiscal sponsor, MEVEF, and one day soon through its own IRS approval), a raffle ticket is still not tax deductible. A *donation* to CXC counts, though, as tax deductible.
Alan
(*)I'm really torn between whether I "j'adore" you for your ticket purchases or for your new P90D/Ludicrous... what a car!! Can't wait to upgrade my P85+ in the fall of '16.
Thank you!!Raffle is NOT sadly NOT repeat NOT tax deductible! Oh how I wish it were. But this is not even close to debatable. There's an IRS regulation, bolstered by some rulings, that a raffle ticket purchase is not a gift and therefore not deductible. You are purchasing something of value, i.e., the chance at a prize (in this raffle, 6 prizes). So even though CXC is eligible under 501c3 rules (currently via its fiscal sponsor, MEVEF, and one day soon through its own IRS approval), a raffle ticket is still not tax deductible. A *donation* to CXC counts, though, as tax deductible.
Alan
(*)I'm really torn between whether I "j'adore" you for your ticket purchases or for your new P90D/Ludicrous... what a car!! Can't wait to upgrade my P85+ in the fall of '16.
JenniferQ
Active Member
Jennifer! J'adore!(*)
(*)I'm really torn between whether I "j'adore" you for your ticket purchases or for your new P90D/Ludicrous... what a car!! Can't wait to upgrade my P85+ in the fall of '16.
I'll take both! A great cause and a great car. Thanks to you and your wife for your commitment to our earth. I also shared to my Facebook page so who knows how far it will go.
Thanks, @JenniferQ... and thanks for sharing it on your FB page! I confess that we are mostly social media neophytes, although I am soon to have a crash course from someone savvy in that arena. Any help you can give us is gratefully accepted!
Alan
P.S. How's that P90D/Ludicrous treating you?! Love your license plate.
Alan
P.S. How's that P90D/Ludicrous treating you?! Love your license plate.
JenniferQ
Active Member
Still being built. Anxiously watching MyTesla for updates. Should be here in about 7-10 days or so I'm told. Ready!
Joules Verne
Member
I got my ticket at Alan's most awesome event. It was quite the build-up to the raffle grand prize announcement. Nicely done my friend. Bravo!
It was great to meet Senator Mike Barrett and hear him share his thoughts on climate change and his carbon tax proposal.
Highlight though was getting my wife and son in the Model S for a test ride, experiencing the launch, the grin, and all the chatting about and excitement around the car. There were what, 50 Teslas there? Anyway, she now "gets it". Conversation has become one of color choice. Love it!
Thanks for the great event Alan.
Good luck with the fund raiser.
Looking forward to the drawing. I'm thinking pearl white.
It was great to meet Senator Mike Barrett and hear him share his thoughts on climate change and his carbon tax proposal.
Highlight though was getting my wife and son in the Model S for a test ride, experiencing the launch, the grin, and all the chatting about and excitement around the car. There were what, 50 Teslas there? Anyway, she now "gets it". Conversation has become one of color choice. Love it!
Thanks for the great event Alan.
Good luck with the fund raiser.
Looking forward to the drawing. I'm thinking pearl white.
One thing I didn't see in the legalese, if the winner wants to order something more than the $103K allocated, I assume they would just pay the difference themselves? Just wanted to clarify.
@Joules,
Thank you for the kind words!
I'm really glad you got a chance to take a test ride... that's why there were two cars at the event last Saturday. One for poking at in the driveway and one circulating on a loop throughout the neighborhood, taking people for rides. Didn't let anyone test drive, though... too much alcohol.
And extra thanks for buying a raffle ticket!!
Alan
Thank you for the kind words!
I'm really glad you got a chance to take a test ride... that's why there were two cars at the event last Saturday. One for poking at in the driveway and one circulating on a loop throughout the neighborhood, taking people for rides. Didn't let anyone test drive, though... too much alcohol.
And extra thanks for buying a raffle ticket!!
Alan
