HF 296

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 02/05/2015 03:59pm

A bill for an act
relating to lawful gambling; providing a separate rate of tax for paper pull tabs
sold at bingo halls; exempting paper pull tabs sold at bingo halls from the
combined net receipts tax; subjecting electronic linked bingo to the gross receipts
tax; amending Minnesota Statutes 2014, sections 297E.02, subdivisions 1, 6;
349.12, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 297E.02, subdivision 1, is amended to read:

Subdivision 1.

Imposition.

new text begin (a) new text end A tax is imposed on all lawful gambling other than
(1) paper or electronic pull-tab deals or games; (2) tipboard deals or games; new text begin and new text end (3)
deleted text begin electronic linked bingo; and (4) deleted text end items listed in section 297E.01, subdivision 8, clauses
(4) and (5), at the rate of 8.5 percent on the gross receipts as defined in section 297E.01,
subdivision 8, less prizes actually paid.

new text begin (b) A tax is imposed on the conduct of paper pull-tabs, at the rate of 1.7 percent of
the ideal gross of the pull-tab deal. However, the tax imposed under this paragraph applies
only to a bingo hall as defined in section 349.12, subdivision 4a.
new text end

new text begin (c) new text end The tax imposed by this subdivision is in lieu of the tax imposed by section
297A.62 and all local taxes and license fees except a fee authorized under section 349.16,
subdivision 8, or a tax authorized under subdivision 5.

new text begin (d) new text end The tax imposed under this subdivision is payable by the organization or party
conducting, directly or indirectly, the gambling.

Sec. 2.

Minnesota Statutes 2014, section 297E.02, subdivision 6, is amended to read:

Subd. 6.

Combined net receipts tax.

(a) In addition to the taxes imposed under
subdivision 1, a tax is imposed on the combined receipts of the organization. As used
in this section, "combined net receipts" is the sum of the organization's gross receipts
from lawful gambling less gross receipts directly derived from the conduct of paper
bingo, raffles, and paddlewheels, as defined in section 297E.01, subdivision 8, and less
the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and
paddlewheels, for the fiscal year. The combined net receipts of an organization are subject
to a tax computed according to the following schedule:

	If the combined net receipts for the fiscal year are:		The tax is:
	Not over $87,500		nine percent
	Over $87,500, but not over $122,500		$7,875 plus 18 percent of the amount over $87,500, but not over $122,500
	Over $122,500, but not over $157,500		$14,175 plus 27 percent of the amount over $122,500, but not over $157,500
	Over $157,500		$23,625 plus 36 percent of the amount over $157,500

(b) On or before April 1, 2016, the commissioner shall estimate the total amount of
revenue, including interest and penalties, that will be collected for fiscal year 2016 from
taxes imposed under this chapter. If the amount estimated by the commissioner equals
or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the
rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a
notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the
rates under this section apply, the combined net receipts of an organization are subject to a
tax computed according to the following schedule:

	If the combined net receipts for the fiscal year are:		The tax is:
	Not over $87,500		8.5 percent
	Over $87,500, but not over $122,500		$7,438 plus 17 percent of the amount over $87,500, but not over $122,500
	Over $122,500, but not over $157,500		$13,388 plus 25.5 percent of the amount over $122,500, but not over $157,500
	Over $157,500		$22,313 plus 34 percent of the amount over $157,500

(c) Gross receipts derived from sports-themed tipboards are exempt from taxation
under this section. For purposes of this paragraph, a sports-themed tipboard means a
sports-themed tipboard as defined in section 349.12, subdivision 34, under which the
winning numbers are determined by the numerical outcome of a professional sporting event.

new text begin (d) A bingo hall as defined in section 349.12, subdivision 4a, is exempt from taxation
under this subdivision with respect to receipts from paper pull-tabs.
new text end

Sec. 3.

Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Bingo hall. new text end

new text begin "Bingo hall" means a premises where the primary business is
bingo conducted by a nonprofit organization licensed by the board.
new text end