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S.F. No. 1227 - Lawful Gambling Taxes Modification (as proposed by the A-1 amendment)
Author: Senator Rod Skoe
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: April 14, 2015


This bill modifies the tax structure for certain lawful gambling activities, effective July 1, 2015.




Under current law, electronic linked bingo is included in the lawful gambling activities subject to the combined net receipts tax.  Receipts are taxed according to brackets and rates.  Net receipts of bingo, raffles, and paddletickets are taxed at 8.5 percent.  This section removes electronic linked bingo from the list of lawful gambling activities excluded from the 8.5 percent net receipts tax, so that electronic linked bingo receipts would now be taxed at the 8.5 percent rate.


Includes electronic linked bingo among the lawful gambling activities which receipts are subtracted for purposes of the starting point for the combined net receipts tax. 

Modifies the brackets and rates for the combined net receipts tax.  Reduces the threshold amount that must be exceeded in fiscal year 2016 in order for combined net receipts tax rates to be subject to lower rates.  Exempts the first $50,000 in receipts from the net receipts tax and the combined net receipts tax. 


Provides that charitable organizations whose gross receipts, less prizes paid, are $750,000 or less for the 12-month period covered by an organization’s financial statement are not subject to the audit requirement. 


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