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 outlined in subdivision 6, which taxed the combined net receipts of organizations conducting gambling activities. This change aims to simplify the tax structure for lawful gambling and reduce the overall tax burden on organizations involved in such activities.

Additionally, the bill includes an effective date of July 1, 2025, for both the new tax rate and the repeal of the combined net receipts tax. By streamlining the taxation process and eliminating the combined net receipts tax, the legislation seeks to create a more favorable environment for lawful gambling operations in Minnesota.

Statutes affected:
Introduction: 297E.02