170.21
ARTICLE 10
170.22
SPECIAL TAXES
172.16 Sec. 3. Minnesota Statutes 1999
Supplement, section
172.17 297E.02, subdivision 1, is amended to read:
172.18 Subdivision 1. [IMPOSITION.] A
tax is imposed on all
172.19 lawful gambling other than (1) pull-tab deals or games;
(2)
172.20 tipboard deals or games; and (3) items listed in section
172.21 297E.01, subdivision 8, clauses (4) and (5), at the rate
of 9
172.22 8.5 percent on the gross receipts as defined in section
297E.01,
172.23 subdivision 8, less prizes actually paid. The tax
imposed by
172.24 this subdivision is in lieu of the tax imposed by section
172.25 297A.02 and all local taxes and license fees except a
fee
172.26 authorized under section 349.16, subdivision 8, or a tax
172.27 authorized under subdivision 5.
172.28 The tax imposed under this subdivision
is payable by the
172.29 organization or party conducting, directly or indirectly,
the
172.30 gambling.
172.31 EFFECTIVE DATE: This section is
effective July 1, 2000.
172.32 Sec. 4. Minnesota Statutes 1998,
section 297E.02, is
172.33 amended by adding a subdivision to read:
172.34 Subd. 2a. [TAX CREDIT FOR CERTAIN
RAFFLES.] An
172.35 organization may claim a credit equal to the tax reported
under
172.36 subdivision 1 resulting from a raffle the net proceeds
of which
173.1 have been used exclusively for the purposes of section
349.12,
173.2 subdivision 25, paragraph (a), clause (2).
The organization
173.3 claiming the credit must do so on the monthly gambling
tax
173.4 return on which the raffle activity is reported under
173.5 subdivision 1.
173.6 EFFECTIVE DATE: This section
is effective August 1, 2000.
173.7 Sec. 5. Minnesota Statutes
1999 Supplement, section
173.8 297E.02, subdivision 4, is amended to read:
173.9 Subd. 4. [PULL-TAB AND TIPBOARD
TAX.] (a) A tax is imposed
173.10 on the sale of each deal of pull-tabs and tipboards sold
by a
173.11 distributor. The rate of the tax is 1.8 1.7 percent
of the
173.12 ideal gross of the pull-tab or tipboard deal. The
sales tax
173.13 imposed by chapter 297A on the sale of the pull-tabs and
173.14 tipboards by the distributor is imposed on the retail
sales
173.15 price less the tax imposed by this subdivision.
The retail sale
173.16 of pull-tabs or tipboards by the organization is exempt
from
173.17 taxes imposed by chapter 297A and is exempt from all local
taxes
173.18 and license fees except a fee authorized under section
349.16,
173.19 subdivision 8.
173.20 (b) The liability for the tax imposed
by this section is
173.21 incurred when the pull-tabs and tipboards are delivered
by the
173.22 distributor to the customer or to a common or contract
carrier
173.23 for delivery to the customer, or when received by the
customer's
173.24 authorized representative at the distributor's place of
173.25 business, regardless of the distributor's method of accounting
173.26 or the terms of the sale.
173.27 The tax imposed by this subdivision
is imposed on all sales
173.28 of pull-tabs and tipboards, except the following:
173.29 (1) sales to the governing body of an
Indian tribal
173.30 organization for use on an Indian reservation;
173.31 (2) sales to distributors licensed under
the laws of
173.32 another state or of a province of Canada, as long as all
173.33 statutory and regulatory requirements are met in the other
state
173.34 or province;
173.35 (3) sales of promotional tickets as
defined in section
173.36 349.12; and
174.1 (4) pull-tabs and tipboards sold
to an organization that
174.2 sells pull-tabs and tipboards under the exemption
from licensing
174.3 in section 349.166, subdivision 2. A distributor
shall require
174.4 an organization conducting exempt gambling to show
proof of its
174.5 exempt status before making a tax-exempt sale of
pull-tabs or
174.6 tipboards to the organization. A distributor
shall identify, on
174.7 all reports submitted to the commissioner, all sales
of
174.8 pull-tabs and tipboards that are exempt from tax
under this
174.9 subdivision.
174.10 (c) A distributor having a liability
of $120,000 or more
174.11 during a fiscal year ending June 30 must remit all liabilities
174.12 in the subsequent calendar year by a funds transfer as
defined
174.13 in section 336.4A-104, paragraph (a). The funds
transfer
174.14 payment date, as defined in section 336.4A-401, must be
on or
174.15 before the date the tax is due. If the date the
tax is due is
174.16 not a funds transfer business day, as defined in section
174.17 336.4A-105, paragraph (a), clause (4), the payment date
must be
174.18 on or before the funds transfer business day next following
the
174.19 date the tax is due.
174.20 (d) Any customer who purchases deals
of pull-tabs or
174.21 tipboards from a distributor may file an annual claim
for a
174.22 refund or credit of taxes paid pursuant to this subdivision
for
174.23 unsold pull-tab and tipboard tickets. The claim
must be filed
174.24 with the commissioner on a form prescribed by the commissioner
174.25 by March 20 of the year following the calendar year for
which
174.26 the refund is claimed. The refund must be filed
as part of the
174.27 customer's February monthly return. The refund or
credit is
174.28 equal to 1.8 1.7 percent of the face value of the unsold
174.29 pull-tab or tipboard tickets, provided that the refund
or credit
174.30 will be 1.85 1.75 percent of the face value of the unsold
174.31 pull-tab or tipboard tickets for claims for a refund or
credit
174.32 of taxes filed on the February 2000 2001 monthly return.
The
174.33 refund claimed will be applied as a credit against tax
owing
174.34 under this chapter on the February monthly return.
If the
174.35 refund claimed exceeds the tax owing on the February monthly
174.36 return, that amount will be refunded. The amount
refunded will
175.1 bear interest pursuant to section 270.76 from 90
days after the
175.2 claim is filed.
175.3 EFFECTIVE DATE: This section
is effective July 1, 2000.
175.4 Sec. 6. Minnesota Statutes
1999 Supplement, section
175.5 297E.02, subdivision 6, is amended to read:
175.6 Subd. 6. [COMBINED RECEIPTS
TAX.] In addition to the taxes
175.7 imposed under subdivisions 1 and 4, a tax is imposed
on the
175.8 combined receipts of the organization. As used
in this section,
175.9 "combined receipts" is the sum of the organization's
gross
175.10 receipts from lawful gambling less gross receipts directly
175.11 derived from the conduct of bingo, raffles, and paddlewheels,
as
175.12 defined in section 297E.01, subdivision 8, for the fiscal
year.
175.13 The combined receipts of an organization are subject to
a tax
175.14 computed according to the following schedule:
175.15 If the combined receipts for the
The tax is:
175.16 fiscal year are:
175.17 Not over $500,000
zero
175.18 Over $500,000, but not over
175.19 $700,000
1.8 1.7 percent of the
175.20
amount over $500,000,
but
175.21
not over $700,000
175.22 Over $700,000, but not over
175.23 $900,000
$3,600 $3,400 plus 3.6
175.24
3.4 percent of the
amount
175.25
over $700,000, but
175.26
not over $900,000
175.27 Over $900,000
$10,800 $10,200 plus 5.4
175.28
5.1 percent of the
175.29
amount over $900,000
175.30 EFFECTIVE DATE: This section is
effective July 1, 2000.