House Speaker Gene Chandler's has recently admitted he's received nearly 64 thousand dollars from annual fundraisers over the last four years.
Chandler says he's used the proceeds to pay for gas, new tires, and possibly his mortgage.
The Speaker says he considers the contributions gifts.
But New Hampshire Public Radio's Dan Gorenstein looks at whether these donations are gifts, or something else entirely.
About three weeks ago, The Friends of Gene Chandler Committee held its most recent Corn Roast Gala Fundraiser.
And when it was over, House Speaker Gene Chandler was about $19 thousand dollars richer.
State election law requires an elected official eport a all gifts above $50 dollars.
And just last week, the Speaker, admitted to having not reported the contributions from these corn roasts for the past seven years.
Since 2001 alone, the reports show Chandler raised nearly 64 thousand dollars.
He says this money wasn't given to him as part of his political campaign, or even his race for Speaker of the House.
He says the contributions from friends, neighbors, prominent lobbyists, political action committees and corporations are gifts.
But since the speaker spent some of the money on personal items, shouldn't he report it as taxable income?
T.12
:57 ... that is another issue that is going to come up. I spoke to my accountant, and he said it wasn't necessary.
Chandler says the reason it's not necessary is because the contributions are gifts.
A number of tax attorneys in the state agree.
The way to determine whether the Speaker must pay taxes on these funds depends on the intentions of the giver.
Attorney Steve Burke of the McLane Law Firm says IRS tax law is clear, if the money is a gift it's not taxable.
1:21 there is one seminal case called Duberstein and that case the US Supreme Court, for something to be a gift it must be made out of in the words of the court, detached and disinterested generosity, really out of affection, respect, or like impulses...but if it is in return for any services, than it's taxable.
People affiliated with the Corn Roasts say many who contribute are Chandler's friends and neighbors, making a nominal donation.
Tickets to the Corn Roast went for $10 dollars a head.
It's possible some contributors would meet the disinterested generosity standard set out by the IRS.
But what about corporations or political action committees that cut $500 and $1000 checks to the Speaker.
Palmer Jones is the Executive Vice President of the New Hampshire Medical Society.
His group donated $1000 to the Corn Roast in 2004.
6:04 I always thought of it as a donation that would basically be used for that office, I did not see it any other way. I would not use the term gift at all.
And Paul Worsowitz, who heads up the Aggregate the Vote PAC, concedes its $1000 dollar contribution isn't detached, disinterested generosity.
13:13 we look at individuals who understand our issues, and we hope they would be reelected to office...G.C. we appreciate that he comes back as a speaker. (you want that) yes...We would like Gene Chandler to come back to Concord, that's correct. And has the capacity to come back to Concord, b/c he understands the transportation issues, the highway issues.
But Gerry Little, who is President of the New Hampshire Bankers Association says his PAC just wrote Chandler a $300 dollar check as a thank you.
3:13 I am not sure I am comfortable wading into the parsing of the word gift for tax purposes. All I can tell you, is my sense has always been to the purpose was to generate a source of funds to help the speaker defray the costs of being the speaker.
When presented with the fact that a significant amount of the contributions are coming from corporations, PACs and lobbyists, Speaker Chandler's accountant Frank Seek says that's news to him.
1:28 ... he was telling me he was getting these gifts that were being given to him for his personal expenses. Now you are bringing up another point, and I am not 100% sure, if they are giving him a gift for his personal stuff, is it really a gift, or is it taxable? Not sure. I just took it as these were gifts from people down there, that were giving it to him. I didn't realize there are beer people in there, and there are tobacco people in there. I didn't realize that.
Based on the new information, Seek says he's not sure if Chandler has to file an amended tax return.
He says he will look into the matter in the coming weeks.
Tax Attorney Steve Burke sympathizes with trying to sort out whether a political contribution is a gift or not.
He says that's why the IRS does use a second standard.
3:45 they also look at the use of the money. And if it is used for a politacl or campaign purposes, it's non-taxable income. If it's used for personal purposes, then the IRS has deemed there wasn't just a detached and disinterested generosity, and it becomes taxable income.
Speaker Chandler by law does not have to disclose how he spent the money he raised at the Corn Roasts.
He has said he's used the money for a variety of purposes.
Everything from paying for gas to drive between the North Country and Concord, to his mortgage.
More than one tax attorney recommended Speaker Chandler review his records to figure out how he did spend the money.
But more than one tax attorney also agreed, if the Speaker does owe federal income taxes, it's an easy matter to clear up with an amended return.
For NHPR News, I'm DG.
