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    LPE Codes 7-12

    For a quick review of the codes mentioned on this page, please refer to the LPE Code Summary Chart.

    Code Expenditures by Expenditures To (examples)
     7

    All licensed gambling organizations, for activities benefiting youth under age 21. 

    Gender equity —A licensed gambling organization that makes a greater percentage of its lawful purpose expenditures on facilities or activities for one gender may not deny a reasonable request for funding for the underrepresented gender if the request meets lawful purpose.
    • Youth participating in community, recreational, or athletic activities.
    • Vendor, for purchase of goods or services benefiting youth (for example, equipment purchases, bats, balls, gloves, hockey sticks, skates, uniforms, equipment repairs, etc.). 
    • Vendor, for fees and other costs of youth activities (for example, tournament fees, umpire fees, coach wages, ice time, field rental, etc.). 
    • Community activities for youth, youth recreation, or youth athletic organization. 
    • Unit of government. Refer to code 10. 
    • Minnesota state-level parent organization for programs approved by the Gambling Control Board. Refer to code 21. 
    • Licensed lawful gambling organization. Refer to code 20.

    Repair or maintenance of capital assets and real property used exclusively for code 7 does not require Gambling Control Board approval.

    Capital assets —For the acquisition or improvement of capital assets with a cost greater than $2,000 per item or project, refer to code 23.

    Real property —For real property, refer to code 24. 
     8

    All licensed gambling organizations, for payment of local, state, and federal taxes on receipts from lawful gambling; gambling tax refund, if any.

    For statistical purposes, code 8 is divided into four subcodes:

    • 8T - state tax and regulatory fee
    • 8U - State franchise tax (M-4NP)
    • 8L - Local regulatory tax (up to 3%)
    • 8F - Federal 730, 990-T, and 11-C taxes
    • Combined net receipts tax. 
    • 8.5% tax on non-linked bingo and raffle net receipts. 
    • The 0.125% monthly regulatory fee. 
    • Department of Revenue (M-4NP). 
    • IRS, for 990T, 730 if applicable, and 11-C for the organization only. 11-C taxes for individuals are an allowable expense. 
    • Local unit of government, for local gambling tax up to 3%. 
    • Refunds of any of the above items are entered on LG100C as a negative amount. 

    The LG555 is not required for these expenditures.
     9

    All licensed gambling organizations for payment of real estate taxes and assessments on a permitted gambling premises owned by the organization. 

    All licensed veterans' organizations, recognized as 501(c)(19) of the Internal Revenue Code, for payment of real estate taxes and assessments on a permitted gambling premises owned or wholly leased by the organization.
    • To a county or city.
    Restrictions: Property taxes may be paid only on the building that is the permitted premises and the parcel of land on which the building stands. Taxes may not be paid for separate parcels of land or buildings for which the organization has no premises permit.

    NOTE : Your organization may qualify for a property tax special classification of 4c(3)(ii) if your organization meets certain requirements. Contact your county assessor for information
     10

    All licensed gambling organizations, for contributions to the United States, the state of Minnesota or any of its subdivisions or agencies or instrumentalities. A direct contribution to a law enforcement or prosecutorial agency is not allowed.

    For statistical purposes, code 10 is divided into three subcodes:

    • 10R - Required payment to a city-adminstered fund (up to 10%)
    • 10V - Voluntary contribution to a city
    • 10 - Contribution to a non-city unit of government

    All of these expenditures must be supported by a completed LG555. Keep the LG555 in the organization records. 

    • Minnesota city or city unit. 
    • Minnesota county or county unit. 
    • Minnesota township or township unit. 
    • State of Minnesota or governmental unit. 
    • United States government or governmental unit. 
    • School district. Refer to code 4.
     11 All licensed gambling organizations, for contributions to or expenditures by a nonprofit organization that is a church or a body of communicants.
    • Church.
    • Body of communicants. 
    • Church, licensed to conduct gambling, to its own general fund. 
    • Church licensed to conduct lawful gambling. Refer to code 20.
     12 All licensed gambling organizations, for expenditures for citizen monitoring of surface water quality testing for public waters by individuals or nongovernmental organizations, with Minnesota Pollution Control Agency (MPCA) guidance on monitoring procedures, quality assurance protocols, and data management, providing that data is submitted to the MPCA.

    All of these expenditures must be supported by a completed LG555. Keep the LG555 in the organization records. 

    • Individual. 
    • Vendor, for goods or services. 
    • Unlicensed nongovernmental organization. 

    For capital assets that will be owned by the organization, refer to code 23.
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