HF2926 (Legislative Session 94 (2025-2026))
Pull-tabs and electronic pull-tabs removed from the combined net receipts tax base and separate taxes imposed, and definition modified.
AI Generated Summary
Purpose of the Bill
The bill aims to change the taxation structure related to charitable gambling in Minnesota. Specifically, it seeks to modify how pulltabs and electronic pulltabs are taxed.
Main Provisions
- Separate Taxation: Pulltabs and electronic pulltabs will be removed from the combined net receipts tax base. Instead, they will be subject to separate taxation. This means that these games will have individual tax rates rather than being taxed as part of a group's cumulative receipts.
- Definition Modification: The bill amends the definition of "gross receipts" for lawful gambling. It clarifies what is included in gross receipts, such as sales from various gambling activities before deductions for prizes and expenses, and specifically details the inclusion of pulltab and electronic pulltab games.
Significant Changes to Existing Law
- The bill modifies Minnesota Statutes regarding the definition of gross receipts by specifying the handling of sales from pulltabs and electronic pulltabs.
- It requires the imposition of separate taxes on these gambling activities instead of including them in the net receipts framework, altering how revenue from these activities is processed for tax purposes.
Relevant Terms
- Charitable gambling
- Pulltabs
- Electronic pulltabs
- Gross receipts
- Tax base
- Lawful gambling
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 26, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill modifies the definition of gross receipts for lawful gambling activities under section 297E.01, subdivision 8.",
"modified": [
"Clarifies items included in gross receipts such as pulltabs and electronic pulltabs, and specifies exclusions such as rental proceeds."
]
},
"citation": "297E.01",
"subdivision": "subdivision 8"
}
]