HF 169

01/15/25   REVISOR  EAP/LJ  25-01431
This Document can be made available
in alternative formats upon request  State of Minnesota
  HOUSE OF REPRESENTATIVES
  NINETY-FOURTH SESSION
  H. F. No.   169
02/10/2025     Authored by Robbins, Harder, Warwas, Burkel, Schwartz and others
  The bill was read for the first time and referred to the Committee on Taxes
1.1A bill for an act
1.2relating to taxation; lawful gambling; subjecting all lawful gambling receipts to a
1.3flat rate tax; repealing the combined net receipts tax; amending Minnesota Statutes
1.42024, section 297E.02, subdivision 1; repealing Minnesota Statutes 2024, section
1.5297E.02, subdivision 6.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7Section 1. Minnesota Statutes 2024, section 297E.02, subdivision 1, is amended to read:
1.8Subdivision 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 five percent on the gross receipts as defined in section 297E.01, subdivision 8, less
1.12prizes actually paid. The tax imposed by this subdivision is in lieu of the tax imposed by
1.13section 297A.62 and all local taxes and license fees except a fee authorized under section
1.14349.16, subdivision 8, or a tax authorized under section 349.213, subdivision 3.
1.15The tax imposed under this subdivision is payable by the organization or party conducting,
1.16directly or indirectly, the gambling.
1.17EFFECTIVE DATE. This section is effective July 1, 2025.
1.18Sec. 2. REPEALER.
1.19Minnesota Statutes 2024, section 297E.02, subdivision 6, is repealed.
1.20EFFECTIVE DATE. This section is effective July 1, 2025.
Sec. 2.  1
  APPENDIX
  Repealed Minnesota Statutes: 25-01431
   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:
 If the combined net receipts  The tax is:
 for the fiscal year are:
 Not over $87,500  eight percent
 Over $87,500, but not over  $7,000 plus 17 percent of the amount over
 $122,500  $87,500, but not over $122,500
 Over $122,500, but not over  $12,950 plus 25 percent of the amount
 $157,500  over $122,500, but not over $157,500
 Over $157,500  $21,700 plus 33.5 percent of the amount
  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.
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