1 | 1 | | 1.1 A bill for an act |
---|
2 | 2 | | 1.2 relating to taxation; lawful gambling; expanding the flat rate tax and eliminating |
---|
3 | 3 | | 1.3 the combined net receipts tax; amending Minnesota Statutes 2022, section 297E.02, |
---|
4 | 4 | | 1.4 subdivision 1; repealing Minnesota Statutes 2022, section 297E.02, subdivision |
---|
5 | 5 | | 1.5 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 percent on the gross receipts as defined in section 297E.01, subdivision 8, less prizes |
---|
12 | 12 | | 1.12actually paid. The tax imposed by this subdivision is in lieu of the tax imposed by section |
---|
13 | 13 | | 1.13297A.62 and all local taxes and license fees except a fee authorized under section 349.16, |
---|
14 | 14 | | 1.14subdivision 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19 | 19 | | 1.19 Minnesota Statutes 2022, section 297E.02, subdivision 6, is repealed.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/AD 23-0231101/13/23 |
---|
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. 838 |
---|
28 | 28 | | NINETY-THIRD SESSION |
---|
29 | 29 | | Authored by Garofalo01/25/2023 |
---|
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: 23-02311 |
---|