Minnesota Legislature
HF 1185
as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2015 08:00am
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A bill for an act
relating to taxation; reducing tax rates for lawful gambling; amending Minnesota
Statutes 2014, section 297E.02, subdivisions 1, 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 297E.02, subdivision 1, is amended to read:
Subdivision 1.
Imposition.
A tax is imposed on all lawful gambling other than (1)
paper or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic
linked bingo; and (4) items listed in section 297E.01, subdivision 8, clauses (4) and (5), at
the rate of deleted text begin 8.5deleted text end new text begin 4.25new 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 subdivision 5.
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 July 1, 2015.
new text end
Sec. 2.
Minnesota Statutes 2014, 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 paddlewheels, 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
paddlewheels, 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 |
deleted text begin ninedeleted text end new text begin four and one-halfnew 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 $3,937.50new text end plus deleted text begin 18deleted text end new text begin 9new text end percent of the amount over $87,500, but not over $122,500 |
|||
| Over $122,500, but not over $157,500 |
deleted text begin $14,175deleted text end new text begin $7,087.50new text end plus deleted text begin 27deleted text end new text begin 13.5new text end percent of the amount over $122,500, but not over $157,500 |
|||
| Over $157,500 |
deleted text begin $23,625deleted text end new text begin $11,812.50new text end plus deleted text begin 36deleted text end new text begin 18new text end 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 |
deleted text begin 8.5deleted text end new text begin 4.25new text end percent |
|||
| Over $87,500, but not over $122,500 |
deleted text begin $7,438deleted text end new text begin $3,719new text end plus deleted text begin 17deleted text end new text begin 8.5 new 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 $13,388deleted text end new text begin $6,694new text end plus deleted text begin 25.5deleted text end new text begin 12.75 new text end percent of the amount over $122,500, but not over $157,500 |
|||
| Over $157,500 |
deleted text begin $22,313deleted text end new text begin $11,156.50new text end plus deleted text begin 34deleted text end new text begin 17new text end 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 EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2015.
new text end