HF 2926

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/21/2025 01:47 p.m.

A bill for an act
relating to taxation; charitable gambling; removing pull-tabs and electronic pull-tabs
from the combined net receipts tax base and imposing separate taxes on pull-tabs
and electronic pull-tabs; modifying a definition; amending Minnesota Statutes
2024, sections 297E.01, subdivision 8; 297E.02, subdivision 6, by adding
subdivisions.

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

Section 1.

Minnesota Statutes 2024, section 297E.01, subdivision 8, is amended to read:

Subd. 8.

Gross receipts.

"Gross receipts" means all receipts derived from lawful gambling
activity including, but not limited to, the following items:

(1) gross sales of bingo hard cards, paper sheets, linked bingo paper sheets, and electronic
linked bingo games before reduction for prizes, expenses, shortages, free plays, or any other
charges or offsets;

(2) the ideal gross of pull-tab, electronic pull-tab games, and tipboard deals or games
less the value of unsold and defective tickets and before reduction for prizes, expenses,
shortages, free plays, or any other charges or offsets;

(3) gross sales of raffle tickets and paddle tickets before reduction for prizes, expenses,
shortages, free plays, or any other charges or offsets; new text begin and
new text end

(4) admission, commission, cover, or other charges imposed on participants in lawful
gambling activity as a condition for or cost of participation deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (5) interest, dividends, annuities, profit from transactions, or other income derived from
the accumulation or use of gambling proceeds.
deleted text end

Gross receipts does not include rental proceeds from premises owned by an organization
and leased to one or more other organizations for the purposes of conducting lawful gambling.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, 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 net 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, new text begin
pull-tabs, electronic pull-tabs, new text end 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, new text begin
pull-tabs, electronic pull-tabs, new text end 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		eight percent
	Over $87,500, but not over $122,500		$7,000 plus 17 percent of the amount over $87,500, but not over $122,500
	Over $122,500, but not over $157,500		$12,950 plus 25 percent of the amount over $122,500, but not over $157,500
	Over $157,500		$21,700 plus 33.5 percent of the amount over $157,500

(b) 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 EFFECTIVE DATE. new text end

new text begin This section is effective for games played after June 30, 2025.
new text end

Sec. 3.

Minnesota Statutes 2024, section 297E.02, is amended by adding a subdivision to
read:

new text begin Subd. 6b. new text end

new text begin Net receipts tax; pull-tabs. new text end

new text begin In addition to the taxes imposed under subdivisions
1, 6, and 6c, a tax is imposed on the receipts of the organization directly derived from the
conduct of pull-tabs, less the net prizes actually paid from the conduct of pull-tabs, for the
fiscal year. The pull-tab net receipts of an organization are subject to a tax computed
according to the following schedule:
new text end

	new text begin If the pull-tab net receipts for the fiscal year are: new text end		new text begin The tax is: new text end
	new text begin Not over $87,500 new text end		new text begin eight percent new text end
	new text begin Over $87,500, but not over $122,500 new text end		new text begin $7,000 plus 17 percent of the amount over $87,500, but not over $122,500 new text end
	new text begin Over $122,500, but not over $157,500 new text end		new text begin $12,950 plus 25 percent of the amount over $122,500, but not over $157,500 new text end
	new text begin Over $157,500 new text end		new text begin $21,700 plus 33.5 percent of the amount over $157,500 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for games played after June 30, 2025.
new text end

Sec. 4.

Minnesota Statutes 2024, section 297E.02, is amended by adding a subdivision to
read:

new text begin Subd. 6c. new text end

new text begin Net receipts tax; electronic pull-tabs. new text end

new text begin In addition to the taxes imposed under
subdivisions 1, 6, and 6b, a tax is imposed on the receipts of the organization directly derived
from the conduct of electronic pull-tabs, less the net prizes actually paid from the conduct
of electronic pull-tabs, for the fiscal year. The electronic pull-tab net receipts of an
organization are subject to a tax computed according to the following schedule:
new text end

	new text begin If the electronic pull-tab net receipts for the fiscal year are: new text end		new text begin The tax is: new text end
	new text begin Not over $87,500 new text end		new text begin eight percent new text end
	new text begin Over $87,500, but not over $122,500 new text end		new text begin $7,000 plus 17 percent of the amount over $87,500, but not over $122,500 new text end
	new text begin Over $122,500, but not over $157,500 new text end		new text begin $12,950 plus 25 percent of the amount over $122,500, but not over $157,500 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for games played after June 30, 2025.
new text end