This bill, proposed by Joy and Knudsen and referred to the Committee on Taxes, aims to adjust how taxes are applied to lawful gambling in Minnesota. Specifically, the bill proposes changes to the tax rates and brackets for combined net receipts from lawful gambling activities, as detailed in Minnesota Statutes 2024, section 297E.02, subdivision 6.

Key changes include: 1. Modifying the tax brackets and rates for combined net receipts from gambling. For instance: - For receipts up to $100,000 (formerly $87,500), the tax rate is reduced from 8.5% to 3%. - For receipts between $100,000 and $200,000 (formerly $122,500), the fixed tax is reduced from $7,000 to $3,000, and the percent charged on the amount over $100,000 but not exceeding $200,000 is reduced from 17% to 10%. - For receipts between $200,000 and $300,000 (formerly $157,500), the additional percent tax on the excess over $200,000 is reduced from 25% to 18%. - For receipts over $300,000, the initial fixed tax is increased from $21,700 to $31,000, while the percent charged on the excess over $300,000 is reduced from 33.5% to 26%.

1. Providing an exemption from taxation for gross receipts derived from sports-themed tipboards, which are games where winning numbers are determined by the outcome of a professional sporting event.

These changes aim to adjust the fiscal burden on organizations conducting lawful gambling, potentially encouraging more activities in this sector by reducing the tax load in certain brackets, while slightly increasing it for the highest earners in this category. Overall, the bill reflects adjustments that could impact revenue for both the organizations involved and the state.