MN HF3325

Removes electronic linked bingo from the list of gambling activities exempt from the 8.5 percent gross receipts tax, making it subject to taxation on gross receipts less prizes and compensation actually paid.

Adds definition of "compensation" as wages actually paid by organizations to employees for conducting lawful gambling plus payroll taxes imposed on those wages.

Modifies combined net receipts tax brackets and rates, increasing thresholds from $87,500/$122,500/$157,500 to $100,000/$200,000/$300,000 and adjusting tax rates in the secondary tax schedule that applies if fiscal year 2016 revenue reaches $94,800,000.

Requires organizations conducting electronic pull-tab games to report gross receipts and prizes to the commissioner only after the game is closed, rather than during active play.

Eliminates mandatory annual financial audits for organizations with over $750,000 in gross receipts and makes audits discretionary based on compliance issues, while retaining requirements for annual certified inventory and cash count reports.