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SF3130 (Legislative Session 94 (2025-2026))

Combined net receipts tax rates reduction and brackets expansion

Related bill: HF797

AI Generated Summary

Purpose of the Bill

This bill seeks to modify the tax rates associated with lawful gambling in Minnesota. It specifically aims to reduce the combined net receipts tax rates and expand the brackets for taxation.

Main Provisions

  • Tax Reduction on Combined Net Receipts: The bill proposes a reduction in the tax rates for the combined net receipts from lawful gambling activities. The reduction focuses on specific fiscal thresholds:

    • For receipts not over $100,000, the tax rate is reduced from 8% to 3%.
    • For receipts over $100,000 but not over $200,000, the tax is reduced from a base of $7,000 plus 17% to $3,000 plus 10% of the amount over $100,000.
    • For receipts over $200,000 but not over $300,000, the tax will decrease from a base of $12,950 plus 25% to $13,000 plus 18%.
    • For receipts over $300,000, the tax changes from a base of $21,700 plus 33.5% to $31,000 plus 26% of the amount over $300,000.

  • Exemption for Sports-Themed Tipboards: The bill exempts gross receipts derived from sports-themed tipboards from taxation. A sports-themed tipboard is defined by the outcome determined by a professional sporting event.

Significant Changes to Existing Law

  • Expands the existing tax brackets to accommodate different levels of receipts and imposes lower tax rates, aiming to reduce the tax burden on organizations involved in lawful gambling.
  • Introduces a specific exemption for sports-themed gambling activities, offering a targeted relief for gross receipts earned through these activities.

Relevant Terms

  • Tax reduction
  • Lawful gambling
  • Combined net receipts
  • Tax brackets
  • Sports-themed tipboards
  • Tax exemption

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025SenateFloorActionIntroduction and first reading
March 31, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [
        ""
      ],
      "summary": "The bill modifies the tax rates and thresholds for combined net receipts from lawful gambling under section 297E.02, subdivision 6.",
      "modified": [
        "Reduces tax rates for various brackets and expands the thresholds for each bracket in the combined net receipts tax schedule."
      ]
    },
    "citation": "297E.02",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references the definition of terms relevant to lawful gambling found under section 297E.01, subdivision 8.",
      "modified": []
    },
    "citation": "297E.01",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references the definition of sportsthemed tipboards as given in section 349.12, subdivision 34.",
      "modified": []
    },
    "citation": "349.12",
    "subdivision": "subdivision 34"
  }
]

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