3% Local Lawful Gambling Regulatory Tax
A lawful gambling regulatory tax may only be imposed if the amount is necessary to cover costs incurred to regulate gambling in a city's or county's jurisdiction; if costs are incurred annually, they are reimbursed annually by receipt of the tax, and cities and counties should refund any balance each calendar year. Regulating lawful gambling includes site inspections, compliance reviews, and corrective action. A city or county may impose a local gambling tax only if it does not charge an investigation fee or other local tax on lawful gambling. (Sec. 349.213, subd. 3)
Each city implementing the tax is required to submit a calendar-year report to the Board detailing the amounts collected and spent. Select the link below to open a PDF file containing these reports for 2020. The cities are listed in alphabetical order.
Local Enforcement Tax Reports 2020
10% Contribution Fund
A city or county may require (by ordinance) an organization to contribute up to 10% per year of net profits derived from lawful gambling conducted at premises within the city or county’s jurisdiction (Sec. 349.213, subd. 1) to a fund that the city or county administers. Net profits are gross profits less amounts expended for that site's allowable expenses and portion of lawful gambling taxes. Cities are restricted on how they may spend these funds.
Organizations must make 10% fund checks payable to the city requiring the funds, and not to any other payee. A licensed organization that contributes to the 10% fund may not be the beneficiary of that fund. A required contribution is different from a voluntary contribution to units of government (under lawful purpose Code 10) for government programs and projects, and cities or counties are not required to report voluntary contributions to the Board.
Local units of government are required to spend the 10% contribution funds in the same manner as licensed organizations.
Each city implementing the local contribution fund is required to submit a calendar-year report to the Board detailing the amounts collected and spent. Select the link below to open a PDF file containing these reports for 2020. The cities are listed in alphabetical order.
Local Contribution Fund Reports 2020