Governor Signs 1998 Omnibus Tax Bill Which
Includes 5% Lawful Gambling Tax Reduction
On Tuesday, April 21, 1998 Governor Arne Carlson signed into law Chapter
No. 389 H.F. 3840, the 1998 Omnibus Tax Bill. The H.F. 3840 conference
committee report, which includes a 5% lawful gambling tax reduction, was
approved by the Minnesota Legislature on the last day of the 1998 legislative
session - Thursday, April 9, 1998.
H.F. 3840, which was authored by Senator Doug Johnson of Tower and Representative
Dee Long of Minneapolis, repassed the Minnesota Senate by a vote of 66-1
and the Minnesota House of Representatives by a vote of 100-33. Article
13 of H.F. 3840 changes Minnesota's Lawful Gambling Taxes effective July
1, 1998 as follows:
* Net Receipts Tax on bingo, paddlewheels, & raffles reduced from
10% to 9.5%
* Ideal Gross Tax on pull-tabs & tipboards reduced from 2% to 1.9%
* Combined Receipts Tax on pull-tabs & tipboards reduced from 2%-4%-6%
to 1.9%-3.8%-5.7%
For fiscal year 1999 (July 1, 1998 - June 30, 1999) the 5% lawful gambling
tax reduction will provide an additional $2,690,000 to licensed organizations
to spend in their communities for lawful purpose contributions. The 5%
lawful gambling tax reduction will be around $2,912,000 for each subsequent
fiscal year. Please note that for fiscal year
1999 the 5% lawful gambling tax reduction was the largest sales, use,
excise, or miscellaneous tax provision in the 1998 Omnibus Tax Bill.
Click here for text of Article
13 (Gaming Taxes) of Chapter No. 389 H.F. 3840 and the conference committee
report.