| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; lawful gambling; subjecting all lawful gambling receipts to a |
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| 3 | 3 | | 1.3 flat rate tax; repealing the combined net receipts tax; amending Minnesota Statutes |
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| 4 | 4 | | 1.4 2024, section 297E.02, subdivision 1; repealing Minnesota Statutes 2024, section |
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| 5 | 5 | | 1.5 297E.02, subdivision 6. |
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| 6 | 6 | | 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 7 | 7 | | 1.7 Section 1. Minnesota Statutes 2024, section 297E.02, subdivision 1, is amended to read: |
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| 8 | 8 | | 1.8 Subdivision 1.Imposition.A tax is imposed on all lawful gambling other than (1) paper |
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| 9 | 9 | | 1.9or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic linked |
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| 10 | 10 | | 1.10bingo; and (4) items listed in section 297E.01, subdivision 8, clauses (4) and (5), at the rate |
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| 11 | 11 | | 1.11of 8.5 five percent on the gross receipts as defined in section 297E.01, subdivision 8, less |
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| 12 | 12 | | 1.12prizes actually paid. The tax imposed by this subdivision is in lieu of the tax imposed by |
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| 13 | 13 | | 1.13section 297A.62 and all local taxes and license fees except a fee authorized under section |
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| 14 | 14 | | 1.14349.16, subdivision 8, or a tax authorized under section 349.213, subdivision 3. |
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| 15 | 15 | | 1.15 The tax imposed under this subdivision is payable by the organization or party conducting, |
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| 16 | 16 | | 1.16directly or indirectly, the gambling. |
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| 17 | 17 | | 1.17 EFFECTIVE DATE.This section is effective July 1, 2025. |
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| 18 | 18 | | 1.18 Sec. 2. REPEALER. |
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| 19 | 19 | | 1.19 Minnesota Statutes 2024, section 297E.02, subdivision 6, is repealed. |
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| 20 | 20 | | 1.20 EFFECTIVE DATE.This section is effective July 1, 2025. |
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| 21 | 21 | | 1Sec. 2. |
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| 22 | 22 | | 25-01431 as introduced01/15/25 REVISOR EAP/LJ |
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| 23 | 23 | | SENATE |
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| 24 | 24 | | STATE OF MINNESOTA |
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| 25 | 25 | | S.F. No. 1941NINETY-FOURTH SESSION |
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| 26 | 26 | | (SENATE AUTHORS: NELSON and Weber) |
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| 27 | 27 | | OFFICIAL STATUSD-PGDATE |
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| 28 | 28 | | Introduction and first reading02/27/2025 |
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| 29 | 29 | | Referred to Taxes 297E.02 TAX IMPOSED. |
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| 30 | 30 | | Subd. 6.Combined net receipts tax.(a) In addition to the taxes imposed under subdivision 1, |
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| 31 | 31 | | a tax is imposed on the combined net receipts of the organization. As used in this section, "combined |
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| 32 | 32 | | net receipts" is the sum of the organization's gross receipts from lawful gambling less gross receipts |
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| 33 | 33 | | directly derived from the conduct of paper bingo, raffles, and paddlewheels, as defined in section |
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| 34 | 34 | | 297E.01, subdivision 8, and less the net prizes actually paid, other than prizes actually paid for |
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| 35 | 35 | | paper bingo, raffles, and paddlewheels, for the fiscal year. The combined net receipts of an |
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| 36 | 36 | | organization are subject to a tax computed according to the following schedule: |
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| 37 | 37 | | The tax is:If the combined net receipts |
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| 38 | 38 | | for the fiscal year are: |
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| 39 | 39 | | eight percentNot over $87,500 |
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| 40 | 40 | | $7,000 plus 17 percent of the amount over |
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| 41 | 41 | | $87,500, but not over $122,500 |
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| 42 | 42 | | Over $87,500, but not over |
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| 43 | 43 | | $122,500 |
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| 44 | 44 | | $12,950 plus 25 percent of the amount |
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| 45 | 45 | | over $122,500, but not over $157,500 |
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| 46 | 46 | | Over $122,500, but not over |
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| 47 | 47 | | $157,500 |
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| 48 | 48 | | $21,700 plus 33.5 percent of the amount |
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| 49 | 49 | | over $157,500 |
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| 50 | 50 | | Over $157,500 |
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| 51 | 51 | | (b) Gross receipts derived from sports-themed tipboards are exempt from taxation under this |
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| 52 | 52 | | section. For purposes of this paragraph, a sports-themed tipboard means a sports-themed tipboard |
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| 53 | 53 | | as defined in section 349.12, subdivision 34, under which the winning numbers are determined by |
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| 54 | 54 | | the numerical outcome of a professional sporting event. |
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| 55 | 55 | | 1R |
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| 56 | 56 | | APPENDIX |
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| 57 | 57 | | Repealed Minnesota Statutes: 25-01431 |
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