MA: Mideast Contest Winnings Taxation Act (Statute)

[🐒Gods of Prosperity🔱🐲💸]

I would assume contest winnings are currently taxed as personal income.

Does the region have a lottery?

[🐒Gods of Prosperity🔱🐲💸]

An alternative to taxing the winnings would be to reduce the winnings and advertise it as tax free.  You might consider if you are setting up a lottery, determining what percentage of the sale goes to funding the government, and what percent will go to the prizes.

[🐒Gods of Prosperity🔱🐲💸]

Sorry for making the mess even bigger but I would propose an amendment to the amendment. Concretely, Section 1 should be amended to read:

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This clause clarifies how the regional government can spend the revenue should we decide to establish a regional lottery. Firstly, we have to make sure that all costs of the lottery are covered (i.e. the operating costs). Secondly, the rest of the money we collect from the lottery can be used to fund certain government programs or cut the deficit.

What do you mean by "primarily"?  Typically, the largest part of the revenue is used for prizes, the second largest is for government programs, and the third largest is for operational costs.
http://www.ncsl.org/issues-research/econ/lottery-payouts-and-state-revenue.aspx