All federal, state, and local taxes, laws and regulations apply, and the winner shall bear sole responsibility for paying any applicable taxes, tariffs, fees and miscellaneous costs related to the prize which he/she owes at the time of receipt. Because the prize exceeds $5,000 and the fair market value is $12,739, the tax on the fair market value of the prize is $3,159.75 [($12,739 minus the $100 ticket cost) x 25%)]. The supporter must pay $3,159.75 to CKMC to remit to the IRS on his/her behalf at the time of motorcycle delivery. CKMC will indicate the fair market value of the prize ($12,739) in box 1 and the amount of the withholding tax paid ($3,159.75) in box 2 on Form W-2G.  Please consult your tax advisor for more information.