SF 549

as introduced - 91st Legislature (2019 - 2020) Posted on 01/28/2019 03:28pm

A bill for an act
relating to taxation; lawful gambling; reducing rates for the flat rate tax and the
combined net receipts tax; amending Minnesota Statutes 2018, section 297E.02,
subdivisions 1, 6.

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

Section 1.

Minnesota Statutes 2018, 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 8.5 deleted text end new text begin 4.25 new 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, 2019.
new text end

Sec. 2.

Minnesota Statutes 2018, 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, for
the fiscal year. The combined net receipts of an organization new text begin for the fiscal year new text end are subject
to a tax computed according to the following schedule new text begin of rates new text end :

	deleted text begin If the combined net receipts for the fiscal year are: deleted text end		deleted text begin The tax is: deleted text end
	deleted text begin Not over $87,500 deleted text end		deleted text begin nine percent deleted text end
	deleted text begin Over $87,500, but not over $122,500 deleted text end		deleted text begin $7,875 plus 18 percent of the amount over $87,500, but not over $122,500 deleted text end
	deleted text begin Over $122,500, but not over $157,500 deleted text end		deleted text begin $14,175 plus 27 percent of the amount over $122,500, but not over $157,500 deleted text end
	deleted text begin Over $157,500 deleted text end		deleted text begin $23,625 plus 36 percent of the amount over $157,500 deleted text end

new text begin (1) on the first $200,000, 4.5 percent;
new text end

new text begin (2) on all over $200,000, but not over $500,000, 9 percent; and
new text end

new text begin (3) on all over $500,000, 13.5 percent.
new text end

deleted text begin (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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end