HF 2443

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; imposing a gross receipts tax on card club operations;
reducing the combined receipts tax on gambling; amending Minnesota Statutes
2006, sections 240.30, by adding a subdivision; 297E.02, subdivision 6.

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

Section 1.

Minnesota Statutes 2006, section 240.30, is amended by adding a
subdivision to read:

new text begin Subd. 11. new text end

new text begin Gross receipts tax. new text end

new text begin As a condition of operating a card club under this
section, the licensee must pay a gross receipts tax to the commission equal to 6.5 percent
of the gross receipts, less any refunds, for charges imposed under subdivision 4. Payment,
collection, and administration of the tax must be made in the same manner and under the
terms provided under section 240.15 for the tax on pari-mutuel pools. The commission
shall deposit all of the revenues from the tax in the state treasury and amounts deposited
must be credited to the general fund. The amount of the tax does not reduce the obligation
to set aside revenues from the card club under section 240.135.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross receipts received after
June 30, 2007.
new text end

Sec. 2.

Minnesota Statutes 2006, section 297E.02, subdivision 6, is amended to read:

Subd. 6.

Combined receipts tax.

In addition to the taxes imposed under
subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As
used in this section, "combined receipts" is the sum of the organization's gross receipts
from lawful gambling less gross receipts directly derived from the conduct of bingo,
raffles, and paddlewheels, as defined in section 297E.01, subdivision 8, for the fiscal year.
The combined receipts of an organization are subject to a tax computed according to
the following schedule:

	If the combined receipts for the fiscal year are:		The tax is:
	Not over $500,000		zero
	Over $500,000, but not
	over $700,000		1.7 percent of the amount over $500,000, but not over $700,000
	Over $700,000, but not
	over $900,000		$3,400 plus 3.4 percent of the amount over $700,000, but not over $900,000
	Over $900,000		$10,200 plus deleted text begin 5.1 deleted text end new text begin ... new text end percent of the amount over $900,000

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end