SF2692

Purpose of the Bill

The bill proposes changes to tax rates applied to the net receipts of organizations conducting charitable gambling in Minnesota. It specifically aims to modify the existing tax rates and exemptions for certain activities related to charitable gambling.

Main Provisions

• The bill amends tax rates for the combined net receipts organizations earn from lawful gambling activities, not including paper bingo, raffles, and paddlewheels.
• The tax rates are organized in tiers based on the amount of net receipts:
  • For receipts not over $87,500, the tax rate is set at 4%.
  • For receipts over $87,500 but not over $122,500, the initial tax is $3,500 plus 8.5% on the amount over $87,500.
  • For receipts over $122,500 but not over $157,500, the tax is $6,475 plus 12.5% on the amount over $122,500.
  • For receipts over $157,500, the tax is $10,850 plus 16.75% on the amount exceeding $157,500.
• Types of gambling receipts exempt from this tax include those derived from sports-themed tipboards, which are defined as having winning numbers determined by the outcomes of professional sports events.

Significant Changes

• The bill revises the existing tax rates and thresholds for charitable gambling receipts, effectively lowering the percentage rates in each tier, which previously were higher.
• It clarifies and exempts sports-themed tipboards from the combined net receipts tax.

Relevant Terms

charitable gambling, tax rates, combined net receipts, paper bingo, raffles, paddlewheels, sports-themed tipboards, professional sporting events, gross receipts, Minnesota statutes, exemptions.