Bill > SF2947

This bill modifies the tax rates for charitable gambling organizations by adjusting the combined net receipts tax brackets and rates. Specifically, the bill increases the initial tax-exempt threshold from $87,500 to $100,000 and then revises the progressive tax rates for subsequent income brackets. The tax rates are reduced across all brackets: from 8% to 7% for the first bracket, from 17% to 15% for the second bracket, from 25% to 20% for the third bracket, and from 33.5% to 25% for the highest bracket. The bill also maintains an existing exemption for gross receipts from sports-themed tipboards, which are games where winning numbers are determined by the results of professional sporting events. The changes to the tax structure are designed to provide some tax relief for charitable gambling organizations by lowering their tax liability across different levels of net receipts. These modifications will take effect on July 1, 2025, giving organizations time to prepare for the new tax rates.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2947&ssn=0&y=2025