This bill introduces a new amusement device gross receipts tax, imposing a tax of 6.875 percent on the gross receipts from the operation of amusement devices in Minnesota. The bill defines "amusement device" to include various electronic and mechanical machines used for entertainment, such as video games, pinball machines, and arcade games, while explicitly excluding vending machines and lottery devices. The tax is intended to replace existing taxes under chapter 297A, and the revenue generated will be allocated to the general fund and other specified purposes. The bill also outlines the administrative procedures for tax collection, reporting requirements for device owners, and the personal liability for unpaid taxes.

Additionally, the bill amends existing statutes to remove amusement devices from the definition of "sale and purchase" for sales and use tax purposes, thereby clarifying their tax treatment. It also makes technical changes to related provisions, including the exemption of certain coin-operated devices when purchased by retailers. The effective date for the new tax and related amendments is set for July 1, 2025.

Statutes affected:
Introduction: 297A.61, 297A.68