Bill > HF2926

This bill modifies how taxes are calculated for charitable gambling activities, specifically focusing on pull-tabs and electronic pull-tabs. The legislation removes pull-tabs and electronic pull-tabs from the combined net receipts tax base and instead creates separate tax structures for these specific gambling types. Under the new system, organizations will pay taxes on pull-tabs and electronic pull-tabs using a graduated tax rate schedule that increases as net receipts grow, with rates ranging from 8% to 33.5% depending on the total amount of net receipts. The bill also removes certain income sources from the definition of "gross receipts," such as interest and dividends derived from gambling proceeds. Additionally, the legislation eliminates some previous tax calculations related to gambling income and creates more specific tax categories for different types of gambling activities. These changes will take effect for games played after June 30, 2025, giving organizations time to adjust to the new tax framework. The bill aims to provide a more precise and potentially fairer taxation method for charitable gambling organizations by breaking down the tax calculation for different types of gambling activities.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2926&ssn=0&y=2025