Under M.G.L. c. 271, s. 7A, the organization must file a tax return with the Lottery Commission and pay a 5% tax on the gross proceeds (that is not the net amount after expenses, but the gross amount received) ten days after the raffle. The organization will receive the forms from the Lottery Commission after the permit is issued.
M.G.L. c. 271, s. 7A further requires that 30 days after the raffle/bazaar permit expires, the organization must file with the City or Town Clerk two copies of a financial report certified by the three members responsible for the event and an accountant. The Clerk will then send one copy to the Commissioner of Public Safety.
Under M.G.L. c. 271, s. 7A, the permitted organization must keep all records relating to the raffle for at least one year after the financial report is submitted. However, if the organization is a public charity reporting to the Attorney General, it must abide by the record retention requirements of M.G.L. c. 12, s. 8L and keep the records for three years after the filing of the Form PC.