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SF2692 (Legislative Session 94 (2025-2026))

Charitable gambling rates modification

AI Generated Summary

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.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "None"
      ],
      "removed": [
        "None"
      ],
      "summary": "This bill modifies tax rates related to combined net receipts of organizations involved in charitable gambling under section 297E.02.",
      "modified": [
        "Adjusts the tax rate percentages for specific tiers of combined net receipts."
      ]
    },
    "citation": "297E.02"
  },
  {
    "analysis": {
      "added": [
        "None"
      ],
      "removed": [
        "None"
      ],
      "summary": "Defines terms relevant to the taxation of gross receipts from lawful gambling.",
      "modified": [
        "None"
      ]
    },
    "citation": "297E.01"
  },
  {
    "analysis": {
      "added": [
        "None"
      ],
      "removed": [
        "None"
      ],
      "summary": "Defines a sportsthemed tipboard in the context of gambling activities.",
      "modified": [
        "None"
      ]
    },
    "citation": "349.12"
  }
]

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