The House Taxes Committee convened on March 11, 2025, to discuss the implications of recent changes to e-pull tab regulations and their impact on charitable organizations in Minnesota. The meeting featured testimony from various stakeholders, including Ms. Jenner, who highlighted significant revenue declines experienced by charities since the implementation of new rules.

Ms. Jenner reported that many charities are facing revenue drops between 20% to 40% compared to previous years, a stark contrast to the double-digit growth they had seen in e-pull tab revenues prior to the changes. She emphasized that these losses are detrimental to community services, including veteran programs, youth sports, and essential local initiatives. For instance, the Claremont Chamber of Commerce, a small organization, donated $223,000 to various causes while facing a tax burden of $364,000, underscoring the financial strain on charities.

The discussion also touched on the need for tax reform, with Ms. Jenner advocating for a flat tax rate of 5% to simplify reporting and budgeting for charities. She argued that the current tax rates in Minnesota are significantly higher than in other states, which complicates financial planning for charitable organizations and reduces their ability to serve the community effectively.

Chair Gomez raised concerns regarding the accuracy of the reported revenue losses, referencing data from the Gambling Control Board that indicated a more modest decline of 9% to 10%. Ms. Jenner clarified that her figures were based on direct feedback from individual charities, which reported varying levels of revenue loss.

The committee acknowledged the need for further analysis to understand the broader economic factors at play, including potential impacts on overall business performance in establishments that host e-pull tab games. As the meeting progressed, it became clear that the committee would need to gather more data over the coming months to assess the long-term effects of the regulatory changes on charitable gambling and community funding.

The session concluded with a commitment to continue exploring the issues raised, with further testimonies expected in future meetings to provide a comprehensive view of the situation.