SF1956 (Legislative Session 94 (2025-2026))
Lawful gambling receipts imposed taxes repealer and various technical changes
Related bill: HF49
AI Generated Summary
Purpose
- The bill aims to repeal the taxes imposed on all lawful gambling receipts and to implement related technical changes to Minnesota tax and gambling-related statutes and administrative rules. It repeals or modifies a broad set of statutes and rules to reflect the repeal and ensure consistency across the tax system.
Main Provisions
- Repeal of taxes on lawful gambling receipts: The bill eliminates the taxes that apply to all lawful gambling receipts.
- Technical and cross-reference updates: It makes numerous technical changes to align and update Minnesota Statutes and Minnesota Rules that currently govern gambling taxes and related administration.
- Wide scope of statute changes: The bill amends or repeals a large list of statutes (examples include sections in 270C.56, 297A, 299L, 349.x, 349.16, 349.19, 349.22, and others) and repeals several previously existing provisions (e.g., 13.4967, various 297E subsections) to reflect the repeal.
- Administrative rules: It modifies or repeals Minnesota Rules parts 8122.0100 through 8122.0650 to match the new tax framework for gambling receipts.
- Section 1 – liability for tax filing and payments: The bill changes who is responsible for filing, reporting, and remitting taxes, clarifying liability for those who supervise or are responsible for filing returns, as well as for those liable under other tax laws, if they fail to file or remit taxes. This includes taxes arising under other tax chapters and related penalties and interest.
Significant Changes to Existing Law
- Elimination of gambling taxes: Taxes on lawful gambling receipts would be repealed, removing a specific source of state revenue tied to gambling activities.
- Reorganized liability framework: The liability for tax filing, reporting, and remittance is clarified and extended to individuals who oversee or are responsible for these tasks, with penalties and interest applying to taxes under other referenced tax chapters if failure to comply occurs.
- Broad statutory and rule alignment: Numerous statute sections and administrative rule provisions are repealed or amended to reflect the repeal and to ensure the remaining tax framework remains coherent and enforceable.
Administrative and Revenue Implications
- Revenue impact: Repealing gambling receipt taxes is likely to reduce state tax revenue related to gambling activities.
- Compliance and enforcement: Tax administration will shift away from gambling receipt taxes, but enforcement for other tax obligations remains, with updated liability rules for those who oversee filings and remittance.
- Transition considerations: The changes require updates to how agencies process returns, remittances, penalties, and interest under the remaining tax laws, as well as guidance for taxpayers and gambling operators.
Relevant Terms - lawful gambling receipts - taxes - repeal - liability - filing returns - remitting taxes - penalties - interest - Minnesota Statutes - Minnesota Rules - cross-references - administrative changes - Section 1 - gambling taxes - tax administration - enforcement
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 27, 2025 | Senate | Action | Introduction and first reading | ||
| February 27, 2025 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 270C.56 subdivision 1 to specify liability for payment of taxes by persons who have control of filing, reporting, paying, or remitting taxes, applying to taxes under chapters 295, 296A, 297A, 297F, 297G, as well as section 290.92 and 297E.02.",
"modified": []
},
"citation": "270C.56",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in 270C.56 as a tax statute relevant to liability provisions.",
"modified": []
},
"citation": "290.92",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297A.68 subdivision 3a.",
"modified": []
},
"citation": "297A.68",
"subdivision": "subdivision 3a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 299L.03 subdivision 1.",
"modified": []
},
"citation": "299L.03",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 299L.07 subdivision 8.",
"modified": []
},
"citation": "299L.07",
"subdivision": "subdivision 8"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.12 subdivision 25.",
"modified": []
},
"citation": "349.12",
"subdivision": "subdivision 25"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.151 subdivision 4.",
"modified": []
},
"citation": "349.151",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.162 subdivision 2.",
"modified": []
},
"citation": "349.162",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.163 subdivision 5.",
"modified": []
},
"citation": "349.163",
"subdivision": "subdivision 5"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.1641.",
"modified": []
},
"citation": "349.1641",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.19 subdivision 5.",
"modified": []
},
"citation": "349.19",
"subdivision": "subdivision 5"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.2125 subdivision 1.",
"modified": []
},
"citation": "349.2125",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.2125 subdivision 3.",
"modified": []
},
"citation": "349.2125",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.2127 subdivision 1.",
"modified": []
},
"citation": "349.2127",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.2127 subdivision 2.",
"modified": []
},
"citation": "349.2127",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.2127 subdivision 4.",
"modified": []
},
"citation": "349.2127",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.213 subdivision 1.",
"modified": []
},
"citation": "349.213",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.22 subdivision 2.",
"modified": []
},
"citation": "349.22",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Repeals Minnesota Statutes 2024 section 13.4967 subdivision 6.",
"modified": []
},
"citation": "13.4967",
"subdivision": "subdivision 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.01.",
"modified": []
},
"citation": "297E.01",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.02 with multiple subdivisions.",
"modified": []
},
"citation": "297E.02",
"subdivision": "subdivision 1 2 2a 3 6 6a 7 8 9 10 11"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.03.",
"modified": []
},
"citation": "297E.03",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.031.",
"modified": []
},
"citation": "297E.031",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.04.",
"modified": []
},
"citation": "297E.04",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.05.",
"modified": []
},
"citation": "297E.05",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.06.",
"modified": []
},
"citation": "297E.06",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.07.",
"modified": []
},
"citation": "297E.07",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.10.",
"modified": []
},
"citation": "297E.10",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.11.",
"modified": []
},
"citation": "297E.11",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.12 with multiple subdivisions.",
"modified": []
},
"citation": "297E.12",
"subdivision": "subdivision 1 2 4 5 6 7 8 9"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.13.",
"modified": []
},
"citation": "297E.13",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.14.",
"modified": []
},
"citation": "297E.14",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.16 with subdivisions 1 and 2.",
"modified": []
},
"citation": "297E.16",
"subdivision": "subdivision 1 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 297E.17.",
"modified": []
},
"citation": "297E.17",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 2024 section 349.16 subdivision 11.",
"modified": []
},
"citation": "349.16",
"subdivision": "subdivision 11"
}
]Progress through the legislative process
In Committee