Senate Bill No. 2042 - Summary

• Consolidates gaming and excise taxes into a single gaming tax structure with tiered rates: 5% on adjusted gross proceeds up to $200,000; 10% on $200,000-$400,000; 15% on $400,000-$600,000; and 20% on proceeds exceeding $600,000.

• Replaces separate 3% excise taxes on pull tabs and bingo cards with a tiered excise tax rate based on total gross proceeds: 1% for organizations with gross proceeds not exceeding $500,000, increasing to 2.5% for those exceeding $1.5 million.

• Increases allowable expense deduction limits from 51% to 60% of the first $200,000 of adjusted gross proceeds per quarter, with a 45% limit on amounts exceeding $200,000.

• Changes the allocation of collected taxes to cities and counties from 3% to 6% of total taxes collected, distributed quarterly in proportion to taxes collected within each jurisdiction.

• Directs the legislative management to study eligibility requirements for veterans', charitable, educational, religious, fraternal, civic, service, public safety, and public-spirited organizations conducting charitable gaming, with findings reported to the 63rd legislative assembly.