1.1 	A bill for an act
1.2 	relating to lawful gambling; exempting bingo halls from combined net receipts 
1.3 	tax;amending Minnesota Statutes 2014, section 297E.02, subdivision 6.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2014, section 297E.02, subdivision 6, is amended to read:
1.6 		Subd. 6.Combined net receipts tax. (a) In addition to the taxes imposed under 
1.7 	subdivision 1, a tax is imposed on the combined receipts of the organization. As used 
1.8 	in this section, "combined net receipts" is the sum of the organization's gross receipts 
1.9 	from lawful gambling less gross receipts directly derived from the conduct of paper 
1.10 	bingo, raffles, and paddlewheels, as defined in section 297E.01, subdivision 8, and less 
1.11 	the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and 
1.12 	paddlewheels, for the fiscal year. The combined net receipts of an organization are subject 
1.13 	to a tax computed according to the following schedule:

1.14
1.15

1.16

If the combined net 
receipts for the fiscal year 
are:

The tax is:

1.17 | | Not over $87,500 | | nine percent |
1.18

1.19

Over $87,500, but not over 
$122,500

$7,875 plus 18 percent of the amount 
over $87,500, but not over $122,500

1.20

1.21

Over $122,500, but not 
over $157,500

$14,175 plus 27 percent of the amount 
over $122,500, but not over $157,500

1.22

1.23

Over $157,500

$23,625 plus 36 percent of the 
amount over $157,500

1.24 	(b) On or before April 1, 2016, the commissioner shall estimate the total amount of 
1.25 	revenue, including interest and penalties, that will be collected for fiscal year 2016 from 
1.26 	taxes imposed under this chapter. If the amount estimated by the commissioner equals 
2.1 	or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the 
2.2 	rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a 
2.3 	notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the 
2.4 	rates under this section apply, the combined net receipts of an organization are subject to a 
2.5 	tax computed according to the following schedule:

2.6
2.7

2.8

If the combined net 
receipts for the fiscal year 
are:

The tax is:

2.9 | | Not over $87,500 | | 8.5 percent |
2.10

2.11

Over $87,500, but not over 
$122,500

$7,438 plus 17 percent of the amount 
over $87,500, but not over $122,500

2.12
2.13

2.14

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

2.15

2.16

Over $157,500

$22,313 plus 34 percent of the 
amount over $157,500

2.17 	(c) Gross receipts derived from sports-themed tipboards are exempt from taxation 
2.18 	under this section. For purposes of this paragraph, a sports-themed tipboard means a 
2.19 	sports-themed tipboard as defined in section 349.12, subdivision 34, under which the 
2.20 	winning numbers are determined by the numerical outcome of a professional sporting event.
2.21 	(d) Organizations that conduct lawful gambling in a location where the primary 
2.22 	business is bingo are exempt from taxation under this subdivision.