1.1 	A bill for an act
1.2 	relating to taxation; charitable gambling; removing pull-tabs and electronic pull-tabs 
1.3 	from the combined net receipts tax base and imposing separate taxes on pull-tabs 
1.4 	and electronic pull-tabs; modifying a definition;amending Minnesota Statutes 
1.5 	2024, sections 297E.01, subdivision 8; 297E.02, subdivision 6, by adding 
1.6 	subdivisions.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2024, section 297E.01, subdivision 8, is amended to read:
1.9 		Subd. 8.Gross receipts. "Gross receipts" means all receipts derived from lawful gambling 
1.10 	activity including, but not limited to, the following items:
1.11 	(1) gross sales of bingo hard cards, paper sheets, linked bingo paper sheets, and electronic 
1.12 	linked bingo games before reduction for prizes, expenses, shortages, free plays, or any other 
1.13 	charges or offsets;
1.14 	(2) the ideal gross of pull-tab, electronic pull-tab games, and tipboard deals or games 
1.15 	less the value of unsold and defective tickets and before reduction for prizes, expenses, 
1.16 	shortages, free plays, or any other charges or offsets;
1.17 	(3) gross sales of raffle tickets and paddle tickets before reduction for prizes, expenses, 
1.18 	shortages, free plays, or any other charges or offsets; and
1.19 	(4) admission, commission, cover, or other charges imposed on participants in lawful 
1.20 	gambling activity as a condition for or cost of participation; and.
1.21 	(5) interest, dividends, annuities, profit from transactions, or other income derived from 
1.22 	the accumulation or use of gambling proceeds.
2.1 	Gross receipts does not include rental proceeds from premises owned by an organization 
2.2 	and leased to one or more other organizations for the purposes of conducting lawful gambling.

2.3 	EFFECTIVE DATE. This section is effective July 1, 2025.

2.4 	Sec. 2. Minnesota Statutes 2024, section 297E.02, subdivision 6, is amended to read:
2.5 		Subd. 6.Combined net receipts tax. (a) In addition to the taxes imposed under 
2.6 	subdivision 1, a tax is imposed on the combined net receipts of the organization. As used 
2.7 	in this section, "combined net receipts" is the sum of the organization's gross receipts from 
2.8 	lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles,
2.9 	pull-tabs, electronic pull-tabs, and paddlewheels, as defined in section 297E.01, subdivision 
2.10 	8, and less the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, 
2.11 	pull-tabs, electronic pull-tabs, and paddlewheels, for the fiscal year. The combined net 
2.12 	receipts of an organization are subject to a tax computed according to the following schedule:

2.13
2.14		If the combined net receipts 
for the fiscal year are:
		The tax is:
		
2.15		Not over $87,500
		eight percent
		
2.16
2.17		Over $87,500, but not over 
$122,500
		$7,000 plus  17 percent of the amount 
over $87,500, but not over $122,500
		
2.18
2.19		Over $122,500, but not 
over $157,500
		$12,950 plus  25 percent of the amount 
over $122,500, but not over $157,500
		
2.202.21		Over $157,500
		$21,700 plus  33.5 percent of the 
amount over $157,500
		
2.22 	(b) Gross receipts derived from sports-themed tipboards are exempt from taxation under 
2.23 	this section. For purposes of this paragraph, a sports-themed tipboard means a sports-themed 
2.24 	tipboard as defined in section 349.12, subdivision 34, under which the winning numbers 
2.25 	are determined by the numerical outcome of a professional sporting event.

2.26 	EFFECTIVE DATE. This section is effective for games played after June 30, 2025.

2.27 	Sec. 3. Minnesota Statutes 2024, section 297E.02, is amended by adding a subdivision to 
2.28 	read:
2.29 		Subd. 6b.Net receipts tax; pull-tabs. In addition to the taxes imposed under subdivisions 
2.30 	1, 6, and 6c, a tax is imposed on the receipts of the organization directly derived from the 
2.31 	conduct of pull-tabs, less the net prizes actually paid from the conduct of pull-tabs, for the 
2.32 	fiscal year. The pull-tab net receipts of an organization are subject to a tax computed 
2.33 	according to the following schedule:

3.1
3.2		If the pull-tab net receipts 
for the fiscal year are:
		The tax is:
		
3.3		Not over $87,500
		eight percent
		
3.4
3.5		Over $87,500, but not over 
$122,500
		$7,000 plus  17 percent of the amount 
over $87,500, but not over $122,500
		
3.6
3.7		Over $122,500, but not 
over $157,500
		$12,950 plus  25 percent of the amount 
over $122,500, but not over $157,500
		
3.83.9		Over $157,500
		$21,700 plus  33.5 percent of the 
amount over $157,500

3.10 	EFFECTIVE DATE. This section is effective for games played after June 30, 2025.

3.11 	Sec. 4. Minnesota Statutes 2024, section 297E.02, is amended by adding a subdivision to 
3.12 	read:
3.13 		Subd. 6c.Net receipts tax; electronic pull-tabs. In addition to the taxes imposed under 
3.14 	subdivisions 1, 6, and 6b, a tax is imposed on the receipts of the organization directly derived 
3.15 	from the conduct of electronic pull-tabs, less the net prizes actually paid from the conduct 
3.16 	of electronic pull-tabs, for the fiscal year. The electronic pull-tab net receipts of an 
3.17 	organization are subject to a tax computed according to the following schedule:

3.18
3.19
3.20		If the electronic pull-tab net 
receipts for the fiscal year 
are:
		The tax is:
		
3.21		Not over $87,500
		eight percent
		
3.22
3.23		Over $87,500, but not over 
$122,500
		$7,000 plus  17 percent of the amount 
over $87,500, but not over $122,500
		
3.24
3.25		Over $122,500, but not 
over $157,500
		$12,950 plus  25 percent of the amount 
over $122,500, but not over $157,500

3.26 	EFFECTIVE DATE. This section is effective for games played after June 30, 2025.