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HF172 (Legislative Session 94 (2025-2026))

Charitable gambling; rates reduced and corresponding changes made to brackets for the combined net receipts tax.

Related bill: SF937

AI Generated Summary

The proposed legislative bill, H.F. No., aims to adjust the taxation related to charitable gambling in Minnesota. It seeks to reduce the tax rates and adjust the tax brackets for the combined net receipts from such gambling activities. Specifically, it modifies the existing tax structure as follows:

  1. For annual combined net receipts up to $87,500, the tax rate is reduced from 8.7% to 7%.
  2. For receipts over $87,500 but not over $122,500, the tax changes from a fixed amount of $7,000 plus 17% of the excess over $87,500 to $6,125 plus 15% of the excess.
  3. For receipts over $122,500 but not over $157,500, the tax is adjusted from $12,950 plus 25% of the excess over $122,500 to $11,375 plus 22%.
  4. For receipts over $157,500, it changes from $21,700 plus 33.5% of the excess to $19,075 plus 30%.

Moreover, the bill exempts gross receipts from sports-themed tipboards from these taxes. A sports-themed tipboard is defined as a game where winning numbers depend on the scores of a professional sporting event.

This bill has been referred to the Committee on Taxes for further consideration.

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends section 297E.02 related to the taxation of combined net receipts from charitable gambling activities.",
      "modified": [
        "Tax rates and brackets for combined net receipts tax have been adjusted."
      ]
    },
    "citation": "297E.02"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to the definition used for calculating the combined net receipts tax.",
      "modified": []
    },
    "citation": "297E.01"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines the term 'sportsthemed tipboard' which is exempt from the taxation under section 297E.02.",
      "modified": []
    },
    "citation": "349.12"
  }
]

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