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.

HF 171 creates a new 6.875% tax on gross receipts from amusement devices like arcade games, pinball machines, and bowling alleys in Minnesota. This tax replaces the existing sales tax for these devices, meaning owners (not customers) must pay it on revenue from device use. The tax revenue is split: 6.5% goes to the general fund and 0.375% to a specific constitutional fund. The bill takes effect July 1, 2025, and applies to all owners operating such devices in Minnesota.