Tax committee advances Robbins bill to cut and simplify charitable gambling tax; amendment adopted

The Minnesota House Taxes Committee on Thursday advanced House File 169 as amended, a bill by State Representative Marion Robbins that would replace the current tiered tax on charitable gambling net receipts with a flat 5% rate. The committee adopted a technical amendment (H0169A1) before laying the bill over for possible inclusion in the omnibus tax bill.

Robbins, the bill author, told members the change is aimed at returning more charitable gambling revenue to local communities. "This bill is sort of the middle ground attempt ... just put a flat tax," Robbins said, adding the change would not eliminate taxation but would cap the state's share at 5%.

Why it matters: Supporters said the proposal would strengthen small-town charities, veterans' groups and volunteer organizations that rely on gambling proceeds for local grants, scholarships and services. Rachel Jenner, executive director of Allied Charities of Minnesota, told the committee charities in the state pay about $195 million annually in taxes and that some organizations…