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SF2692 (Legislative Session 94 (2025-2026))

Charitable gambling rates modification

AI Generated Summary

Purpose of the Bill

The bill aims to modify the tax rates applied to charitable gambling in Minnesota. The focus is on adjusting the rates of the combined net receipts tax, which impacts the revenue from legalized gambling activities, excluding certain types.

Main Provisions

  • Adjusted Tax Rates:

    • The bill proposes changes to the tax percentages applied to combined net receipts from charitable gambling. These adjustments seek to lower the effective tax rate on different tiers of net receipts.

  • Tax Rate Schedule Changes:

    • For the first tier, receipts up to $87,500, the tax rate is reduced from 8% to 4%.
    • For the second tier, receipts over $87,500 but not exceeding $122,500, the tax shifts from a $7,000 base plus 17% of the excess amount, to a $3,500 base plus 8.5%.
    • For receipts over $122,500 but not exceeding $157,500, the tax moves from a $12,950 base plus 25% to a $6,475 base plus 12.5%.
    • For receipts over $157,500, the rate drops from a $21,700 base plus 33.5%, to a $10,850 base plus 16.75%.

  • Exemption for Sports-Themed Tipboards:

    • Gross receipts specifically derived from sports-themed tipboards, where results are based on professional sporting events, are exempt from this taxation.

Significant Changes to Existing Law

  • The primary change is in the tax rate structure applied to the combined net receipts from charitable gambling. This represents a reduction across all tiers, aiming to potentially alleviate tax burdens on these organizations.

Relevant Terms

combined net receipts, charitable gambling, tax rate, paper bingo, raffles, paddlewheels, sports-themed tipboards, professional sporting event, Minnesota statutes.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the combined net receipts tax rates for charitable gambling under section 297E.02 subdivision 6.",
      "modified": [
        "Adjusts the tax rates for various combined net receipt brackets."
      ]
    },
    "citation": "297E.02",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References definitions relevant to lawful gambling.",
      "modified": []
    },
    "citation": "297E.01",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines sportsthemed tipboards in relation to tax exemption.",
      "modified": []
    },
    "citation": "349.12",
    "subdivision": "subdivision 34"
  }
]

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