Minn. House panel advances bill to cut charitable-gambling tax to 5% amid debate over revenue impact

Representative Robbins on the House Tax Committee moved House File 169 and a technical amendment to the bill during a committee hearing, and the committee approved the amendment by voice vote before hearing more than a dozen witnesses.

The bill would replace Minnesota's tiered charitable-gambling tax on combined net receipts'which currently rises from 8% to 33.5% at the highest tier'with a flat 5% tax, Representative Robbins said. "We are making money for the state on the backs of our charities and this has been going on for a really long time, members," Robbins said, arguing the change would leave more funds in local communities.

Supporters from charities, veterans groups and local clubs told the committee the change is needed after 2023 legislation altered electronic pull-tab game features, which they said has reduced revenue at some sites. Rachel Jenner, executive director of Allied Charities of Minnesota, said charities statewide currently pay about $195,000,000 in taxes annually and…