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S.F. No. 549 - Net receipts and combined net receipts tax rates modification
Author: Senator Carrie Ruud
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: February 5, 2019


There are two types of tax imposed on charitable gambling activities. The net receipts tax is a flat 8.5% rate on the gross receipts from the conduct of paper bingo, raffles, and paddleboards less the amount of prizes paid out on from the those games. The combined net receipts tax is imposed on the net receipts from the conduct of paper or electronic pull-tabs, tipboards, and electronic linked bingo. The combined net receipts tax is imposed at graduated rates to corresponding net receipt amounts.

This bill reduces the net receipts tax from 8.5% to 4.25% and modifies the rates and brackets for the combined net receipts tax. Under the bill, the tax is 4.5% on the first $200,000 in combined net receipts; 9% on the amount over $200,000 but not over $500,000, and 13.5% on all amounts over $500,000. 

The bill also strikes obsolete language pertaining to modifying the tax rates for the combined net receipts tax based on estimated revenue for fiscal year 2016.

Effective July 1, 2019.

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