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SF2692 (Legislative Session 94 (2025-2026))

Charitable gambling rates modification

AI Generated Summary

Purpose of the Bill

The bill seeks to modify the tax rates applied to the combined net receipts from certain lawful gambling activities in Minnesota. This adjustment is proposed to affect how organizations calculate their tax obligations based on their gambling-related income.

Main Provisions

  • Modification of Tax Rates: The bill revises the tax rates applied to the combined net receipts of organizations involved in lawful gambling. Existing tax rates are reduced at varying levels of income:

    • If net receipts are not over $87,500, the tax rate is reduced from 8% to 4%.
    • For receipts over $87,500 but not over $122,500, the tax amount starts at $3,500 plus 8.5% (previously 17%) of the excess over $87,500.
    • For receipts over $122,500 but not over $157,500, the tax amount starts at $6,475 plus 12.5% (previously 25%) of the excess over $122,500.
    • Receipts over $157,500 are taxed starting at $10,850 plus 16.75% (previously 33.5%) of the amount over $157,500.

  • Exemption for Sports-themed Tipboards: Gross receipts generated from sports-themed tipboards are exempt from the combined net receipts tax. Sports-themed tipboards are gambling devices where winning numbers are related to the outcomes of professional sporting events.

Significant Changes

  • Reduction in Tax Rates: The bill significantly reduces the tax rates on combined net receipts from various levels of gambling-related income, effectively lowering the tax burden on organizations participating in such activities.
  • Exemption Addition: It introduces a new tax exemption for sports-themed tipboards, which were not previously exempt.

Relevant Terms

  • Charitable gambling
  • Combined net receipts
  • Tax rates
  • Lawful gambling
  • Sports-themed tipboards
  • Gross receipts
  • Tax exemption

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill modifies the tax rates for charitable gambling under section 297E.02, subdivision 6.",
      "modified": [
        "Adjusts tax rates for the combined net receipts from charitable gaming."
      ]
    },
    "citation": "297E.02",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references definitions of terms related to charitable gambling in section 297E.01, subdivision 8.",
      "modified": []
    },
    "citation": "297E.01",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References definition of sports-themed tipboards within section 349.12, subdivision 34.",
      "modified": []
    },
    "citation": "349.12",
    "subdivision": "subdivision 34"
  }
]

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