SF 203

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to lawful gambling; reducing the tax rate on
lawful gambling; eliminating the time restriction for
single occasion bingo sessions; amending Minnesota
Statutes 2004, sections 297E.02, subdivisions 1, 4, 6;
349.17, subdivision 7.

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

Section 1.

Minnesota Statutes 2004, section 297E.02,
subdivision 1, is amended to read:

Subdivision 1.

Imposition.

A tax is imposed on all
lawful gambling other than (1) pull-tab deals or games; (2)
tipboard deals or games; and (3) items listed in section
297E.01, subdivision 8, clauses (4) and (5), at the rate of deleted text begin 8.5
deleted text end new text begin 6.375 new text end percent on the gross receipts as defined in section
297E.01, subdivision 8, less prizes actually paid. 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 new text begin section 349.213, new text end subdivision deleted text begin 5 deleted text end new text begin 3 new text end .

The tax imposed under this subdivision is payable by the
organization or party conducting, directly or indirectly, the
gambling.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross
receipts received on and after July 1, 2005.
new text end

Sec. 2.

Minnesota Statutes 2004, section 297E.02,
subdivision 4, is amended to read:

Subd. 4.

Pull-tab and tipboard tax.

(a) A tax is imposed
on the sale of each deal of pull-tabs and tipboards sold by a
distributor. The rate of the tax is deleted text begin 1.7 deleted text end new text begin 1.275 new text end percent of the
ideal gross of the pull-tab or tipboard deal. The sales tax
imposed by chapter 297A on the sale of the pull-tabs and
tipboards by the distributor is imposed on the retail sales
price less the tax imposed by this subdivision. The retail sale
of pull-tabs or tipboards by the organization is exempt from
taxes imposed by chapter 297A and is exempt from all local taxes
and license fees except a fee authorized under section 349.16,
subdivision 8.

(b) The liability for the tax imposed by this section is
incurred when the pull-tabs and tipboards are delivered by the
distributor to the customer or to a common or contract carrier
for delivery to the customer, or when received by the customer's
authorized representative at the distributor's place of
business, regardless of the distributor's method of accounting
or the terms of the sale.

The tax imposed by this subdivision is imposed on all sales
of pull-tabs and tipboards, except the following:

(1) sales to the governing body of an Indian tribal
organization for use on an Indian reservation;

(2) sales to distributors licensed under the laws of
another state or of a province of Canada, as long as all
statutory and regulatory requirements are met in the other state
or province;

(3) sales of promotional tickets as defined in section
349.12; and

(4) pull-tabs and tipboards sold to an organization that
sells pull-tabs and tipboards under the exemption from licensing
in section 349.166, subdivision 2. A distributor shall require
an organization conducting exempt gambling to show proof of its
exempt status before making a tax-exempt sale of pull-tabs or
tipboards to the organization. A distributor shall identify, on
all reports submitted to the commissioner, all sales of
pull-tabs and tipboards that are exempt from tax under this
subdivision.

(c) A distributor having a liability of $120,000 or more
during a fiscal year ending June 30 must remit all liabilities
in the subsequent calendar year by electronic means.

(d) Any customer who purchases deals of pull-tabs or
tipboards from a distributor may file an annual claim for a
refund or credit of taxes paid pursuant to this subdivision for
unsold pull-tab and tipboard tickets. The claim must be filed
with the commissioner on a form prescribed by the commissioner
by March 20 of the year following the calendar year for which
the refund is claimed. The refund must be filed as part of the
customer's February monthly return. The refund or credit is
equal to deleted text begin 1.7 deleted text end new text begin 1.275 new text end percent of the face value of the unsold
pull-tab or tipboard tickets, provided that the refund or credit
will be 1.75 percent of the face value of the unsold pull-tab or
tipboard tickets for claims for a refund or credit of taxes
filed on the February 2001 monthly return. The refund claimed
will be applied as a credit against tax owing under this chapter
on the February monthly return. If the refund claimed exceeds
the tax owing on the February monthly return, that amount will
be refunded. The amount refunded will bear interest pursuant to
section 270.76 from 90 days after the claim is filed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for pull-tab
and tipboard tickets left unsold on deals purchased on and after
July 1, 2005.
new text end

Sec. 3.

Minnesota Statutes 2004, 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 The tax is:
fiscal year are:
Not over $500,000 zero
Over $500,000, but not over
$700,000 deleted text begin 1.7 deleted text end new text begin 1.275 new text end percent of the
amount over $500,000, but
not over $700,000
Over $700,000, but not over
$900,000 deleted text begin $3,400 deleted text end new text begin $2,550 new text end plus deleted text begin 3.4
deleted text end new text begin 2.55 new text end percent of the
amount over $700,000,
but not over $900,000

Over $900,000 deleted text begin $10,200 deleted text end new text begin $7,650 new text end plus
deleted text begin 5.1 deleted text end new text begin 3.825 new text end percent
of the amount over
$900,000

Sec. 4.

Minnesota Statutes 2004, section 349.17,
subdivision 7, is amended to read:

Subd. 7.

deleted text begin noon hour deleted text end new text begin single occasion new text end bingo new text begin session new text end .

Notwithstanding subdivisions 1 and 3, an organization may
conduct bingo subject to the following restrictions:

(1) deleted text begin the bingo is conducted only between the hours of 11:00
a.m. and 2:00 p.m.;
deleted text end

deleted text begin (2) deleted text end the bingo is conducted at a site the organization owns
or leases and which has a license for the sale of intoxicating
beverages on the premises under chapter 340A;

deleted text begin (3) deleted text end new text begin (2) new text end the bingo is limited to one progressive bingo game
per site as defined by section 349.211, subdivision 2;

deleted text begin (4) deleted text end new text begin (3) new text end the bingo is conducted using only bingo paper
sheets;

deleted text begin (5) deleted text end new text begin (4) new text end if the premises are leased, the rent may not exceed
$25 per day for each day bingo is conducted; and

deleted text begin (6) deleted text end new text begin (5) new text end linked bingo games may not be conducted at a deleted text begin noon
hour deleted text end new text begin single occasion new text end bingo deleted text begin occasion deleted text end new text begin session new text end .