The proposed bill introduces a new amusement device gross receipts tax, imposing a tax rate of 6.875 percent on the gross receipts from the operation of amusement devices in Minnesota. This tax is to be paid by the owners of such devices and is intended to replace the existing taxes under chapter 297A. The bill also includes detailed definitions of terms related to amusement devices, such as "gross receipts" and "providing payment," and outlines the administrative procedures for tax reporting and payment. Additionally, it specifies how the revenues from this tax will be allocated, with a portion going to the general fund and another portion deposited according to the Minnesota Constitution.

Furthermore, the bill amends existing statutes to remove amusement devices from the definition of sale and purchase for sales and use tax purposes. Specifically, it deletes references to amusement devices in sections 297A.61 and 297A.68, while inserting the new section 295.85 that governs the amusement device gross receipts tax. The effective date for these changes is set for July 1, 2025.

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