SF1386

SF1386 (Legislative Session 94 (2025-2026))

Amusement device gross receipts tax establishment

Related bill: HF171

AI Generated Summary

The bill introduces a new tax specifically targeting amusement devices in Minnesota. These devices include things like video games, pinball machines, and bowling alleys but exclude vending machines, lottery devices, or gaming devices regulated under other chapters. The proposed tax rate is 6.875% on the gross receipts generated by these amusement devices when they are paid for and played.

Under this bill, the revenue collected from the new tax would be divided, with the majority (6.5%) going to the general fund of the state, and a smaller part (0.375%) allocated as specified by the Minnesota Constitution.

Owners of amusement devices are responsible for filing tax returns, paying the tax, and handling any applicable administration like audits or refunds following existing tax law procedures. Finally, the bill outlines that the tax, along with any interest and penalties, constitutes a personal debt of the person responsible for the device from the time the tax obligation arises.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 12, 2025	Senate	Floor	Action	Introduction and first reading
February 12, 2025	Senate	Floor	Action	Referred to	Taxes
February 19, 2025	Senate	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends the definition of sale and purchase under section 297A.61 to exclude amusement devices.",
      "modified": [
        "Excludes amusement devices from the definition of sale and purchase for the purposes of sales and use tax."
      ]
    },
    "citation": "297A.61"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Makes technical amendments to sections 297A.68 subdivisions 3a and 45.",
      "modified": [
        "Technical changes to existing tax exemptions under section 297A.68."
      ]
    },
    "citation": "297A.68"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Provides the filing cycle and due dates for tax returns under section 289A.20 subdivision 4.",
      "modified": [
        "Aligns new amusement device tax return filing with the existing schedule in section 289A.20."
      ]
    },
    "citation": "289A.20"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The amusement device tax is imposed in lieu of other taxes in chapter 297A.",
      "modified": [
        "Replaces relevant tax obligations in chapter 297A with the amusement device tax."
      ]
    },
    "citation": "297A"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Administrative provisions of chapter 270C apply to the new amusement device tax.",
      "modified": [
        "Applies chapter 270C provisions for audit, assessment, and enforcement to the amusement device tax."
      ]
    },
    "citation": "270C"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to the deposit of certain tax revenues into funds as outlined in the Minnesota Constitution.",
      "modified": [
        "Requires deposit of a portion of tax revenues in accordance with constitutional mandates."
      ]
    },
    "citation": "Minnesota Constitution article XI section 15"
  }
]