H.F. No. 42 - Summary

• Adds exemption for property awarded as prizes in connection with lawful gambling as defined in section 349.12, effective for sales and purchases made after June 30, 2021.

• Creates new sales and use tax exemption for the lease or purchase of gambling equipment by organizations licensed to conduct lawful gambling under chapter 349, effective for sales and purchases made after June 30, 2021.

• Removes language from existing statute that prohibited the prize exemption from applying to lawful gambling, while maintaining the prohibition for State Lottery prizes.

• Modifies gambling tax collection procedures under section 297E.02 to clarify that retail sales of pull-tabs and tipboards by organizations are exempt from sales tax and local taxes and license fees, effective July 1, 2021.