HF 1613

as introduced - 88th Legislature (2013 - 2014) Posted on 03/18/2013 01:49pm

A bill for an act
relating to lawful gambling; exempting bingo halls from combined net receipts
tax; amending Minnesota Statutes 2012, section 297E.02, subdivision 6.

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

Section 1.

Minnesota Statutes 2012, 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 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 paddle wheels, as defined in section 297E.01, subdivision 8, and less the net
prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddle
wheels, 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		nine percent
	Over $87,500, but not over $122,500		$7,875 plus 18 percent of the amount over $87,500, but not over $122,500
	Over $122,500, but not over $157,500		$14,175 plus 27 percent of the amount over $122,500, but not over $157,500
	Over $157,500		$23,625 plus 36 percent of the amount over $157,500

(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:

	If the combined net receipts for the fiscal year are:		The tax is:
	Not over $87,500		8.5 percent
	Over $87,500, but not over $122,500		$7,438 plus 17 percent of the amount over $87,500, but not over $122,500
	Over $122,500, but not over $157,500		$13,388 plus 25.5 percent of the amount over $122,500, but not over $157,500
	Over $157,500		$22,313 plus 34 percent of the amount over $157,500

(c) 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 (d) Organizations that conduct lawful gambling in a location where the primary
business is bingo are exempt from taxation under this subdivision.
new text end