Allied Charities of Minnesota Legislative Update

February 2, 1998

ACM Tax Reduction Bill Introduced At Minnesota Legislature

On Thursday, January 29, 1998 ACM's 25% Lawful Gambling Tax Reduction Bill was introduced in both the Minnesota House of Representatives and Minnesota Senate.

The House bill (H.F. 3024) was authored by Representatives Bob Milbert of South St. Paul, Alice Johnson of Spring Lake Park, Bill Macklin of Lakeville, Ted Winter of Fulda, & Charlie Weaver of Anoka and was referred to the House Committee on Taxes.

The Senate bill (S.F. 2579) was authored by Senators Jim Vickerman of Tracy, Jim Metzen of South St. Paul, Doug Johnson of Tower, Dick Day of Owatonna, & Pat Pariseau of Farmington and was referred to the Senate Committee on Taxes.

H.F. 3024 & S.F. 2579 are officially described as follows: A bill for an act relating to taxation; reducing the rates of taxes on lawful gambling; amending MN Statutes 1996, section 297E.02, subdivisions 1, 4, and 6.

H.F. 3024 & S.F. 2579 would change Minnesota's Lawful Gambling Taxes as follows

Net Receipts Tax on bingo, paddlewheels, & raffles reduced from 10% to 7.5

Ideal Gross Tax on pull-tabs & tipboards reduced from 2% to 1.5

Combined Receipts Tax on pull-tabs & tipboards reduced from 2%-4%-6% to 1.5%-3%-4.5

H.F. 3024 & S.F. 2579 would provide licensed organizations with an additional $15,000,000 to spend on lawful purpose contributions in their communities for the numerous worthy programs and projects that they support.

In order to accomplish this much needed reduction in lawful gambling taxes we need your help NOW!!!

Call to Action

ask that they support H.F. 3024/S.F. 2579 which reduces lawful gambling taxes by 25% to allow more money to be available for lawful purpose contributions in your (and their) community

It is extremely important that Minnesota State Representatives and Senators are hearing from their constituents in support of H.F. 3024 & S.F. 2579

Over the next several weeks we need you, all your organization members, all your employees, all your recipient organizations -- literally anyone and everyone associated with charitable gambling -- to write and/or call the Minnesota State Representatives and Senators in their local area (see inside for Legislators addresses and phone numbers) and ask that they support H.F. 3024/S.F. 2579 which reduces lawful gambling taxes by 25% to allow more money to be available for lawful purpose contributions in your (and their) community.

We need to flood our Minnesota State Representatives and Senators offices with letters and/or phone calls. The strength of our industry lies in the fact that our charitable gambling organizations and companies represent approximately 500,000 people.

If we take advantage of our numbers we can effectively mount a grassroots lobbying effort which will provide the 25% lawful gambling tax reduction we need and desire.

Remember, it is imperative that you contact your local legislators NOW and ask them to support H.F. 3024/S.F 2579

Sample Letter To Legislators

February _____, 1998

Honorable __________
State Capitol or State Office Building
St. Paul, MN 55155

Dear Representative or Senator

A brief letter in your own words and style requesting support of H.F. 3024/S.F. 2579 which reduces lawful gambling taxes by 25% to allow more money to be available for lawful purpose contributions in your community (letters may be handwritten). Keep it short, simple, and to the point. Also, please be polite.

(figure out additional funds your organization would have available for the programs and projects you support

Total Minnesota gambling taxes as % of gross profit is 2-1/2 times average of the next 10 largest states (25.4% vs. 9.8

We need lawful gambling tax reduction in 1998 - our taxes doubled in 1989, with another large surplus now is the time for a 25% lawful gambling tax reduction

Ask for their support of H.F 3024/S.F 2579 - encourage them to talk to tax committee members about the proposal

Sincerely

Organization
Address,
City, State, Zip

Phone Number

Watch upcoming ACM Legislative Updates for further information on this important issue.

ACM Legislative Update will be mailed out during the

1998 Minnesota Legislative Session to current

ACM Members and Associate Members.