| 1 | 1 | | 1.1 A bill for an act |
|---|
| 2 | 2 | | 1.2 relating to taxation; lawful gambling; subjecting all lawful gambling receipts to a |
|---|
| 3 | 3 | | 1.3 flat rate tax; repealing the combined net receipts tax; amending Minnesota Statutes |
|---|
| 4 | 4 | | 1.4 2022, section 297E.02, subdivision 1; repealing Minnesota Statutes 2022, section |
|---|
| 5 | 5 | | 1.5 297E.02, subdivision 6. |
|---|
| 6 | 6 | | 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
|---|
| 7 | 7 | | 1.7 Section 1. Minnesota Statutes 2022, section 297E.02, subdivision 1, is amended to read: |
|---|
| 8 | 8 | | 1.8 Subdivision 1.Imposition.A tax is imposed on all lawful gambling other than (1) paper |
|---|
| 9 | 9 | | 1.9or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic linked |
|---|
| 10 | 10 | | 1.10bingo; and (4) items listed in section 297E.01, subdivision 8, clauses (4) and (5), at the rate |
|---|
| 11 | 11 | | 1.11of 8.5 five percent on the gross receipts as defined in section 297E.01, subdivision 8, less |
|---|
| 12 | 12 | | 1.12prizes actually paid. The tax imposed by this subdivision is in lieu of the tax imposed by |
|---|
| 13 | 13 | | 1.13section 297A.62 and all local taxes and license fees except a fee authorized under section |
|---|
| 14 | 14 | | 1.14349.16, subdivision 8, or a tax authorized under section 349.213, subdivision 3. |
|---|
| 15 | 15 | | 1.15 The tax imposed under this subdivision is payable by the organization or party conducting, |
|---|
| 16 | 16 | | 1.16directly or indirectly, the gambling. |
|---|
| 17 | 17 | | 1.17 EFFECTIVE DATE.This section is effective July 1, 2023. |
|---|
| 18 | 18 | | 1.18 Sec. 2. REPEALER. |
|---|
| 19 | 19 | | 1.19 Minnesota Statutes 2022, section 297E.02, subdivision 6, is repealed. |
|---|
| 20 | 20 | | 1.20 EFFECTIVE DATE.This section is effective July 1, 2023. |
|---|
| 21 | 21 | | 1Sec. 2. |
|---|
| 22 | 22 | | REVISOR EAP/CH 23-0140101/04/23 |
|---|
| 23 | 23 | | State of Minnesota |
|---|
| 24 | 24 | | This Document can be made available |
|---|
| 25 | 25 | | in alternative formats upon request |
|---|
| 26 | 26 | | HOUSE OF REPRESENTATIVES |
|---|
| 27 | 27 | | H. F. No. 163 |
|---|
| 28 | 28 | | NINETY-THIRD SESSION |
|---|
| 29 | 29 | | Authored by Robbins and Davids01/09/2023 |
|---|
| 30 | 30 | | The bill was read for the first time and referred to the Committee on Taxes 297E.02 TAX IMPOSED. |
|---|
| 31 | 31 | | Subd. 6.Combined net receipts tax.(a) In addition to the taxes imposed under subdivision 1, |
|---|
| 32 | 32 | | a tax is imposed on the combined net receipts of the organization. As used in this section, "combined |
|---|
| 33 | 33 | | net receipts" is the sum of the organization's gross receipts from lawful gambling less gross receipts |
|---|
| 34 | 34 | | directly derived from the conduct of paper bingo, raffles, and paddlewheels, as defined in section |
|---|
| 35 | 35 | | 297E.01, subdivision 8, and less the net prizes actually paid, other than prizes actually paid for |
|---|
| 36 | 36 | | paper bingo, raffles, and paddlewheels, for the fiscal year. The combined net receipts of an |
|---|
| 37 | 37 | | organization are subject to a tax computed according to the following schedule: |
|---|
| 38 | 38 | | The tax is:If the combined net receipts |
|---|
| 39 | 39 | | for the fiscal year are: |
|---|
| 40 | 40 | | nine percentNot over $87,500 |
|---|
| 41 | 41 | | $7,875 plus 18 percent of the amount over |
|---|
| 42 | 42 | | $87,500, but not over $122,500 |
|---|
| 43 | 43 | | Over $87,500, but not over |
|---|
| 44 | 44 | | $122,500 |
|---|
| 45 | 45 | | $14,175 plus 27 percent of the amount |
|---|
| 46 | 46 | | over $122,500, but not over $157,500 |
|---|
| 47 | 47 | | Over $122,500, but not over |
|---|
| 48 | 48 | | $157,500 |
|---|
| 49 | 49 | | $23,625 plus 36 percent of the amount |
|---|
| 50 | 50 | | over $157,500 |
|---|
| 51 | 51 | | Over $157,500 |
|---|
| 52 | 52 | | (b) Gross receipts derived from sports-themed tipboards are exempt from taxation under this |
|---|
| 53 | 53 | | section. For purposes of this paragraph, a sports-themed tipboard means a sports-themed tipboard |
|---|
| 54 | 54 | | as defined in section 349.12, subdivision 34, under which the winning numbers are determined by |
|---|
| 55 | 55 | | the numerical outcome of a professional sporting event. |
|---|
| 56 | 56 | | 1R |
|---|
| 57 | 57 | | APPENDIX |
|---|
| 58 | 58 | | Repealed Minnesota Statutes: 23-01401 |
|---|