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SF2947 (Legislative Session 94 (2025-2026))

Charitable gambling combined net receipts tax rates and brackets modifications

AI Generated Summary

Purpose of the Bill

The bill aims to modify the tax rates and income brackets for organizations conducting charitable gambling in Minnesota. These changes are related to the taxes imposed on combined net receipts of these organizations.

Main Provisions

  • Tax Rate Changes: The bill adjusts the tax rates and income brackets for organizations engaged in charitable gambling.
  • Income Bracket Adjustments:
    • For combined net receipts not over $100,000, the tax rate is reduced to 7%.
    • For receipts over $100,000 but not over $200,000, the tax is a base of $7,000 plus 15% of the excess over $100,000.
    • For receipts over $200,000 but not over $300,000, the tax is a base of $22,000 plus 20% of the excess over $200,000.
    • For receipts over $300,000, the tax is a base of $42,000 plus 25% of the excess over $300,000.

Significant Changes

  • Lower Tax Rates: The bill proposes lower tax rates for each income bracket compared to the current rates.
  • Exemption for Sports-themed Tipboards: Gross receipts from sports-themed tipboards, where winners are determined by a professional sporting event's outcome, are exempt from this tax.

Relevant Terms

  • Taxation
  • Charitable Gambling
  • Combined Net Receipts
  • Tax Rates
  • Income Brackets
  • Sports-themed Tipboards

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025SenateFloorActionIntroduction and first reading
March 23, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the tax rates and brackets for the combined net receipts tax imposed on charitable gambling organizations under section 297E.02, subdivision 6.",
      "modified": [
        "Adjusts the tax brackets for combined net receipts and changes the tax rates within those brackets.",
        "Specifies exemptions for gross receipts derived from sportsthemed tipboards."
      ]
    },
    "citation": "297E.02",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the definition of gross receipts from lawful gambling as used in section 297E.01, subdivision 8.",
      "modified": []
    },
    "citation": "297E.01",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the definition of a sportsthemed tipboard as provided in section 349.12, subdivision 34.",
      "modified": []
    },
    "citation": "349.12",
    "subdivision": "subdivision 34"
  }
]

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