Bill > HF169

This bill appears to modify tax regulations for lawful gambling in Minnesota by changing the tax rate and removing a previous tax structure. Specifically, the legislation reduces the tax rate on most forms of lawful gambling from 8.5 percent to 5 percent of gross receipts (minus prizes paid), and eliminates the previous "combined net receipts tax" which had a graduated tax rate based on an organization's total gambling income. The bill repeals the existing complex tax schedule that previously imposed different tax percentages depending on an organization's total gambling earnings (ranging from 8% to 33.5% based on income levels). The changes will take effect on July 1, 2025, and apply to various forms of gambling except for specific exempted items. This simplification of the tax structure aims to potentially make lawful gambling more financially straightforward for organizations conducting such activities, by replacing a tiered tax system with a flat 5 percent rate on gross receipts.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0169&ssn=0&y=2025