This bill introduces a new amusement device gross receipts tax in Minnesota, imposing a tax rate of 6.875 percent on the gross receipts from the operation of amusement devices. The bill defines "amusement devices" 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 to be administered similarly to existing taxes under chapters 270C and 289A, with specific provisions for reporting and payment outlined. Revenue generated from this tax will be allocated to the general fund and other designated areas as specified in the bill.

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 statutes, ensuring that the new tax framework is integrated into the current legal structure. The effective date for the implementation of this new tax and the associated amendments is set for July 1, 2025.

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