Minneslate Logo

SF1941 (Legislative Session 94 (2025-2026))

All lawful gambling receipts flat rate tax enactment

Related bill: HF169

AI Generated Summary

This Minnesota Senate bill (S.F. No. 1941) proposes changes to the taxation of lawful gambling. Specifically, it seeks to:

  1. Implement a Flat Tax Rate – The bill subjects all lawful gambling receipts to a flat tax rate of 8.5% on gross receipts, after deducting prizes paid.

  2. Repeal the Combined Net Receipts Tax – It eliminates the existing combined net receipts tax, which previously applied different tax rates based on the level of gambling receipts.

  3. Amend Existing Tax Code – The bill modifies Minnesota Statutes 2024, section 297E.02, subdivision 1, to reflect the new flat tax structure.

  4. Preserve Exceptions – The tax does not apply to:

    • Paper or electronic pull-tab deals or games
    • Tipboard deals or games
    • Electronic linked bingo
    • Certain items listed under existing statutes.

  5. Maintain Other Local Fees – While local taxes and license fees are eliminated under this bill, it allows for the continuation of certain fees authorized under section 349.16, subdivision 8, and specific taxes allowed under section 349.213, subdivision 3.

  6. Tax Payment Responsibility – The bill clarifies that the organization or party conducting the gambling is responsible for paying the tax.

The overall goal of the bill is to simplify gambling taxation by replacing the combined net receipts tax with a single flat rate tax, potentially making compliance and administration easier for gambling organizations.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2025SenateFloorActionIntroduction and first reading
February 26, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [
        "Repealing the combined net receipts tax under subdivision 6."
      ],
      "summary": "This bill subjects lawful gambling receipts to a flat rate tax under Minnesota Statutes, section 297E.02.",
      "modified": [
        "Amending the method of tax imposition on certain lawful gambling activities in subdivision 1."
      ]
    },
    "citation": "297E.02"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references definitions provided in section 297E.01 regarding lawful gambling.",
      "modified": [
        "Defines gross receipts relevant to the taxation changes."
      ]
    },
    "citation": "297E.01"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill indicates that the new gambling tax under section 297E.02 is in lieu of the tax imposed by section 297A.62.",
      "modified": []
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 349.16, subdivision 8, is referenced regarding fees exempt from the new tax regulations.",
      "modified": []
    },
    "citation": "349.16"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 349.213, subdivision 3, about tax authorizations.",
      "modified": []
    },
    "citation": "349.213"
  }
]

Sponsors