Bill > HF172

This bill modifies the tax rates for charitable gambling organizations by reducing the tax percentages applied to combined net receipts. Currently, organizations pay taxes on their gambling proceeds based on different income brackets, and the bill lowers these tax rates across all brackets. Specifically, for organizations with combined net receipts not over $87,500, the tax rate drops from 8% to 7%. For organizations earning between $87,500 and $122,500, the rate decreases from 17% to 15%, with corresponding reductions in the base tax amount. Similarly, organizations earning between $122,500 and $157,500 will see their tax rate drop from 25% to 22%, and those earning over $157,500 will see a reduction from 33.5% to 30%. The bill also maintains an existing exemption for gross receipts from sports-themed tipboards and specifies that these tax rate changes will take effect on July 1, 2025. The goal appears to be providing financial relief to charitable organizations that conduct lawful gambling by reducing their tax burden.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0172&ssn=0&y=2025