This bill proposes significant changes to the taxation of lawful gambling in Minnesota. It amends Minnesota Statutes 2024, section 297E.02, subdivision 1, to impose a flat rate tax of five percent on all lawful gambling receipts, replacing the previous rate of 8.5 percent. The bill also repeals the combined net receipts tax, which was previously applied to the gross receipts of organizations conducting lawful gambling, and eliminates specific exemptions for certain types of gambling activities, such as paper or electronic pull-tab deals, tipboard deals, and electronic linked bingo.

Additionally, the bill includes a provision that the changes will take effect on July 1, 2025. The repeal of subdivision 6 of section 297E.02 signifies a shift towards a simplified tax structure for lawful gambling, aiming to streamline the taxation process and potentially increase compliance among gambling organizations.

Statutes affected:
Introduction: 297E.02