Limitation on Deductions from Gross Revenue

Limitation on Deductions from Gross Revenue. No deduction shall be allowed from gross revenues for the unpaid balance of any obligation or credit extended for gambling or gaming. Source: PL 21-26, § 2 (May 18, 2020), modified. Commission Comment: In addition to severability and savings clause provisions, PL 21-26 included the following Findings section: Section 1. Findings. Although gambling is allowed in the Commonwealth, gambling can have an adverse effect on the community. Further, making loans or extending credit for the purpose of gambling can foster problem gambling. This Act discourages lending for the purpose of gambling by providing that unpaid balances on loans extended for gambling shall not be deducted from gross revenues in determining the tax on gross revenues. Public Law 21-26 intends to add Section 1310 to Title 4, Division 1, Chapter 3 of the Commonwealth Code. Because Section 1310 already exists as “Tax on Marijuana Retailer,” in codifying PL 21-26, the Commission renumbered this section to 4 CMC § 1311 pursuant to 1 CMC 3806(a), (b).