This bill proposes significant changes to the taxation of lawful gambling in Minnesota. It introduces a flat rate tax of five percent on all lawful gambling receipts, replacing the previous combined net receipts tax. The bill amends Minnesota Statutes 2024, section 297E.02, subdivision 1, to impose this new tax rate while eliminating the exemptions for certain types of gambling activities, such as paper or electronic pull-tab deals, tipboard deals, and electronic linked bingo. Additionally, it repeals subdivision 6 of the same statute, which previously outlined the combined net receipts tax and its computation.

The effective date for these changes is set for July 1, 2025. By repealing the combined net receipts tax and establishing a flat tax rate, the bill aims to simplify the taxation process for organizations involved in lawful gambling, ensuring that all receipts are taxed uniformly. This legislative change is expected to streamline compliance for gambling organizations and potentially increase state revenue from gambling activities.

Statutes affected:
Introduction: 297E.02