1.1 A bill for an act
1.2 relating to taxation; lawful gambling; expanding the flat rate tax and eliminating
1.3 the combined net receipts tax; amending Minnesota Statutes 2022, section 297E.02,
1.4 subdivision 1; repealing Minnesota Statutes 2022, section 297E.02, subdivision
1.5 6.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2022, section 297E.02, subdivision 1, is amended to read:
1.8 Subdivision 1.Imposition.A tax is imposed on all lawful gambling other than (1) paper
1.9or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic linked
1.10bingo; and (4) items listed in section 297E.01, subdivision 8, clauses (4) and (5), at the rate
1.11of 8.5 percent on the gross receipts as defined in section 297E.01, subdivision 8, less prizes
1.12actually paid. The tax imposed by this subdivision is in lieu of the tax imposed by section
1.13297A.62 and all local taxes and license fees except a fee authorized under section 349.16,
1.14subdivision 8, or a tax authorized under section 349.213, subdivision 3.
1.15 The tax imposed under this subdivision is payable by the organization or party conducting,
1.16directly or indirectly, the gambling.
1.17 EFFECTIVE DATE.This section is effective July 1, 2023.
1.18 Sec. 2. REPEALER.
1.19 Minnesota Statutes 2022, section 297E.02, subdivision 6, is repealed.
1.20 EFFECTIVE DATE.This section is effective July 1, 2023.
1Sec. 2.
REVISOR EAP/AD 23-0231101/13/23
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 838
NINETY-THIRD SESSION
Authored by Garofalo01/25/2023
The bill was read for the first time and referred to the Committee on Taxes 297E.02 TAX IMPOSED.
Subd. 6.Combined net receipts tax.(a) In addition to the taxes imposed under subdivision 1,
a tax is imposed on the combined net receipts of the organization. As used in this section, "combined
net receipts" is the sum of the organization's gross receipts from lawful gambling less gross receipts
directly derived from the conduct of paper bingo, raffles, and paddlewheels, as defined in section
297E.01, subdivision 8, and less the net prizes actually paid, other than prizes actually paid for
paper bingo, raffles, and paddlewheels, for the fiscal year. The combined net receipts of an
organization are subject to a tax computed according to the following schedule:
The tax is:If the combined net receipts
for the fiscal year are:
nine percentNot over $87,500
$7,875 plus 18 percent of the amount over
$87,500, but not over $122,500
Over $87,500, but not over
$122,500
$14,175 plus 27 percent of the amount
over $122,500, but not over $157,500
Over $122,500, but not over
$157,500
$23,625 plus 36 percent of the amount
over $157,500
Over $157,500
(b) Gross receipts derived from sports-themed tipboards are exempt from taxation under this
section. For purposes of this paragraph, a sports-themed tipboard means a sports-themed tipboard
as defined in section 349.12, subdivision 34, under which the winning numbers are determined by
the numerical outcome of a professional sporting event.
1R
APPENDIX
Repealed Minnesota Statutes: 23-02311