MN SF1941

Reduces the lawful gambling tax rate from 8.5% to 5% on gross receipts minus prizes paid, effective July 1, 2025

Expands the 5% flat tax to apply to all lawful gambling, including paper/electronic pull-tabs, tipboards, and electronic linked bingo (previously excluded from the base tax)

Repeals the tiered combined net receipts tax, which currently imposes additional taxes ranging from 8% to 33.5% based on receipt thresholds ($87,500 to over $157,500)

Tax remains payable by the organization conducting the gambling and continues to replace state sales tax and local taxes/license fees

Authored by Senators Nelson and Weber; introduced February 27, 2025 and referred to the Taxes Committee