SF1941 (Legislative Session 94 (2025-2026))
All lawful gambling receipts flat rate tax enactment
Related bill: HF169
AI Generated Summary
This Minnesota Senate bill (S.F. No. 1941) proposes changes to the taxation of lawful gambling in the state. The key provisions include:
Flat Rate Tax Implementation: The bill replaces the current combined net receipts tax with a flat tax rate of 8.5% on gross gambling receipts, minus prizes actually paid.
Scope of Tax: The tax applies to all lawful gambling activities except:
- Paper or electronic pull-tab games
- Tipboard games
- Electronic linked bingo
- Specifically exempted items listed in Minnesota Statutes 297E.01, subdivision 8, clauses 4 and 5
Repeal of Current Tax System: The bill repeals Minnesota Statutes 2024, section 297E.02, subdivision 6, which currently governs the combined net receipts tax.
Tax Responsibility: The organization or party conducting the gambling is responsible for paying the tax.
Exemptions from Other Taxes: The imposed tax replaces the state sales tax on lawful gambling (under section 297A.62) and exempts gambling from other local taxes and license fees, except for those authorized under specific state laws.
In summary, this bill simplifies the tax structure for lawful gambling by replacing the existing combined net receipts tax with a single 8.5% tax rate on gross gambling receipts after prize payouts.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 27, 2025 | Senate | Floor | Action | Introduction and first reading | |
| February 27, 2025 | Senate | Floor | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [
"Eliminates the previous gross receipts rate in favor of a flat rate tax."
],
"summary": "This bill modifies the tax imposition on lawful gambling under section 297E.02, subdivision 1.",
"modified": [
"Adjusts the tax rate from a floating scale to a flat 8.5 percent on gross receipts."
]
},
"citation": "297E.02",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This legislation references the definition of gross receipts for lawful gambling under section 297E.01, subdivision 8.",
"modified": []
},
"citation": "297E.01",
"subdivision": "subdivision 8"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section relates to a tax on sales and use of lawful gambling, which is exempted under the new provisions of 297E.02, subdivision 1.",
"modified": []
},
"citation": "297A.62",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section references fees authorized under 349.16, subdivision 8 concerning lawful gambling.",
"modified": []
},
"citation": "349.16",
"subdivision": "subdivision 8"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section references taxes authorized under 349.213, subdivision 3 concerning lawful gambling.",
"modified": []
},
"citation": "349.213",
"subdivision": "subdivision 3"
}
]