HF 140

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/20/2021 05:49pm

A bill for an act
relating to taxation; lawful gambling; modifying the calculation of the combined
net receipts tax; amending Minnesota Statutes 2020, section 297E.02, subdivision
6.

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

Section 1.

Minnesota Statutes 2020, 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 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, and 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:
	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) 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, 2021.
new text end