- Report Published -
|Fair Market Rental Value Study|
|Charitable Gaming Commission|
|HB 811 (Regular Session, 2000)|
|The Executive Secretary been directed by the Commission to report to the Governor and General Assembly on or before January 10, 2001 on its findings and recommendations relating to House Bill 811 (See. Appendix 1).|
The contents of this report may not reflect the views of the Commissioner's in whole or in part, but is believed to present an accurate statistical view of a very complex and controversial subject. Based upon the results of this report, it is recommended that consideration be given to conduct an in-depth analysis of the "Fair Market Rental Value" practices within the Tidewater area.
The Commission has been asked to evaluate three issues associated with charitable gaming activities relating to licensed charitable gaming organizations. First, the Commission was asked to evaluate fair market rental value for real and personal property utilized by licensed charitable gaming organizations. Secondly, the Commission was asked to evaluate methods licensed charitable gaming organizations should utilize in reporting information relating to rents associated with real and personal property. Thirdly, to evaluate the relationship between rents paid by licensed charitable gaming organizations and their ability to meet the use of proceeds requirement defined under § 18.2-340.16.
Evaluation of Fair Market Rental Value
In reviewing the statutes and regulations (See. Appendix 2 and 3, respectively) of the Charitable Gaming Commission, it is evident that the principle goal of the Commission is to ensure that licensed charitable organizations meet their charitable obligations which they accept as a precondition to licensing, that games be conducted reasonably, and that the playing field for all organizations is equal and that all organizations have an opportunity to use charitable gaming defined under the statutes and regulations as a means of raising revenue funds.
Statutory and regulatory law relating to the Charitable Gaming Commission does not specifically define "fair market rental value", and the Commission does not have the authority to devise standards to protect against abuses in appraising fair market rental value. Currently, there is no way of insuring that the methods used by the landlords in appraising the fair market rental value is a fair price and not an excessive price on the property, based upon the property's original or constructed purpose. For your information and review, we have included a report summarizing the rental charges per region. (See. Appendix 5 - Total Rent Per Region)