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HF171 (Legislative Session 94 (2025-2026))

Amusement device gross receipts tax created, amusement devices removed from the definition of sale and purchase for the sales and use tax, and technical changes made.

Related bill: SF1386

AI Generated Summary

The bill proposes the introduction of a new tax specifically targeting amusement devices in Minnesota. These devices include things like video games, pinball machines, pool tables, and arcade games, among others. The key points of the bill are:

  1. Definition and Scope: Amusement devices are defined as electronic or mechanical devices used for entertainment that are operated by payment. This does not include vending machines, lottery devices, or gaming devices regulated under different laws.

  2. Tax Rate: An amusement device gross receipts tax of 6.875% is to be imposed on the total earnings from these devices.

  3. Tax Management: This tax will replace the current taxes under chapter 297A for these devices, with specific administration, penalties, and refund processes akin to those applied to other state taxes.

  4. Payment and Returns: Owners of these amusement devices must file tax returns in a manner and form as prescribed by the commissioner of revenue, adhering to specified payment schedules.

  5. Revenue Utilization: The revenue collected from this tax will be divided, with the majority going to the state’s general fund and a smaller portion allocated as defined by the Minnesota Constitution.

  6. Personal Debt: The tax, including any related interest and penalties, will be considered a personal debt of the person responsible for filing the return.

This change aims to clearly regulate and tax amusement devices separately, ensuring organized collection and allocation of tax revenues while defining administrative and legal responsibilities for device owners in Minnesota.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 09, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new definition of amusement device."
      ],
      "removed": [
        "Amusement devices from existing definition of sales and purchases for sales tax purposes."
      ],
      "summary": "This bill proposes changes to the definition of sale and purchase in section 297A.61.",
      "modified": [
        "Technical language optimizations for clarity."
      ]
    },
    "citation": "297A.61"
  },
  {
    "analysis": {
      "added": [
        "Clarification for technical consistency."
      ],
      "removed": [
        "Outdated references no longer applicable with proposed changes."
      ],
      "summary": "Amendments to exemptions relating to sales tax under section 297A.68.",
      "modified": [
        "Subdivision updates to reflect changes in sale and purchase definitions."
      ]
    },
    "citation": "297A.68"
  },
  {
    "analysis": {
      "added": [
        "Specification that all enforcement measures apply to the new tax."
      ],
      "removed": [],
      "summary": "Application of existing administrative provisions for new amusement device tax.",
      "modified": [
        "Clarification aligning new tax procedures with current regulations."
      ]
    },
    "citation": "270C"
  },
  {
    "analysis": {
      "added": [
        "Inclusion of new tax in standard payment cycles."
      ],
      "removed": [],
      "summary": "Integrating new tax into current tax payment systems under chapter 289A.",
      "modified": [
        "Payment process alignment for new amusement device tax."
      ]
    },
    "citation": "289A"
  }
]

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