ST. PAUL – In order to allow local organizations to keep more of their profits from charitable gaming, State Representative Greg Davids (R-Preston) is sponsoring legislation that would lower the tax owed to the State of Minnesota on these proceeds.
“In almost every case, these are organizations who either exist to help their communities or contribute to their well-being,” Davids said. “I want local charities to keep more of their proceeds rather than sending too much of it to the state’s coffers.”
The current tax on lawful gambling proceeds is 8.5%. There is also a combined net receipts tax that ranges from 9 to 36%. Davids’ bill would delete the combined net receipts tax and create a flat tax of 5%.
“I look at this as giving a local fire department a better chance to buy needed equipment or repair what it already has,” Davids said. “It would allow an American Legion to spend more on a needy Boy Scout troop or allow a VFW to contribute to something significant in its city. The organizations that would benefit from this tax break all give back to their communities in some way, which is why we should do all we can to allow them to keep more of their gaming proceeds.”