as introduced - 91st Legislature (2019 - 2020) Posted on 02/07/2019 01:53pm
A bill for an act
relating to taxation; lawful gambling; reducing rates for the combined net receipts
tax and providing a deduction for lawful purpose expenditures; amending Minnesota
Statutes 2018, section 297E.02, subdivision 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2018, section 297E.02, subdivision 6, is amended to read:
(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,
and paddlewheels, as defined in section 297E.01, subdivision 8, deleted text begin anddeleted text end less the net prizes
actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels,new text begin and
less the amounts actually expended for lawful purpose contributions under section 349.12,
subdivision 25, paragraph (a), clauses (1) to (7) and (9) to (26),new text end 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: |
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Not over $87,500 |
deleted text begin ninedeleted text end new text begin sixnew text end percent |
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Over $87,500, but not over $122,500 |
deleted text begin $7,875deleted text end new text begin $5,250new text end plus deleted text begin 18deleted text end new text begin 12new text end percent of the amount over $87,500, but not over $122,500 |
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Over $122,500, but not over $157,500 |
deleted text begin $14,175deleted text end new text begin $9,450new text end plus deleted text begin 27deleted text end new text begin 18new text end percent of the amount over $122,500, but not over $157,500 |
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Over $157,500 |
deleted text begin $23,625deleted text end new text begin $18,900new text end plus deleted text begin 36deleted text end new text begin 24new text end percent of the amount over $157,500 |
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(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:
deleted text end
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If the combined net receipts for the fiscal year are: deleted text end |
deleted text begin
The tax is: deleted text end |
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Not over $87,500 deleted text end |
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8.5 percent deleted text end |
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deleted text begin
Over $87,500, but not over $122,500 deleted text end |
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$7,438 plus 17 percent of the amount over $87,500, but not over $122,500 deleted text end |
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Over $122,500, but not over $157,500 deleted text end |
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$13,388 plus 25.5 percent of the amount over $122,500, but not over $157,500 deleted text end |
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Over $157,500 deleted text end |
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$22,313 plus 34 percent of the amount over $157,500 deleted text end |
deleted text begin (c)deleted text end new text begin (b)new text end 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.
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This section is effective July 1, 2019.
new text end