SF1386 would create a new “amusement device gross receipts tax” in Minnesota, effective July 1, 2025. The bill defines amusement devices broadly to include coin- or electronically activated entertainment machines and equipment such as arcade games, pinball machines, pool tables, foosball tables, jukeboxes, batting cages, rides, photo booths, and similar devices, while excluding vending machines, lottery devices, and gambling devices. Owners of these devices would owe a tax equal to 6.875 percent of gross receipts from making the devices available for play.
The bill also amends the sales tax statute to remove amusement devices from the definition of taxable “sale” and “purchase” under chapter 297A, and it updates related exemptions for coin-operated amusement devices and jukebox music to reference the new chapter 295 tax. In effect, the proposal shifts amusement-device taxation away from the sales and use tax framework and into a separate gross receipts tax regime, with administration, filing, enforcement, and refund procedures tied to existing tax-collection laws.
Impact
The bill would change Minnesota tax law by creating a new tax chapter provision for amusement-device gross receipts and by conforming sales tax statutes to exclude amusement-device transactions from chapter 297A. Owners and operators of arcades, bars, bowling alleys, entertainment venues, and similar businesses that provide pay-to-play amusement devices would become subject to the new tax, while the state would deposit most of the revenue into the general fund and a smaller portion into a constitutionally dedicated fund. The bill also makes technical amendments to existing exemptions for coin-operated amusement devices and jukebox music so they align with the new tax structure.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, amendments, or roll-call support/opposition in the available materials. Based on the bill text alone, the measure appears to be a revenue-raising and tax-clarifying proposal rather than a policy change aimed at expanding or restricting access to amusement devices. The caption and structure suggest a straightforward tax administration bill, but the absence of discussion makes overall legislative sentiment difficult to assess.
Contention
The main likely point of contention is the tax burden on amusement-device owners and the businesses that host these devices, who would be responsible for remitting a new 6.875 percent gross receipts tax. Another possible issue is the bill’s interaction with existing sales tax exemptions and whether shifting amusement devices out of chapter 297A and into a separate gross receipts tax creates compliance or classification questions. Because the bill excludes gambling and lottery devices, any debate would likely focus on whether the tax is being applied fairly to entertainment businesses and whether the new structure is simpler or more burdensome than the current one.
Similar To
Amusement device gross receipts tax created, amusement devices removed from the definition of sale and purchase for the sales and use tax, and technical changes made.
Individual income, corporate franchise, sales and use, and gross receipts taxes and other various taxes and tax-related provisions modified; federal conformity provided; sustainable aviation fuel credit modified, firearms gross receipts tax imposed, social media tax imposed, and money appropriated.
Amusement device gross receipts tax created, amusement devices removed from the definition of sale and purchase for the sales and use tax, and technical changes made.