Members and Associates,
Please read the article from the the St. Cloud Times.
Our tax relief bill in both bodies have been heard and are eligible for inclusion in the Omnibus tax bills. Please keep contacting your elected officials to help them understand the unfairness of the current tax policy for gaming charities.
We pay up to seven times the percentage that for profit companies pay as a percentage of their after after expense income. The MN corporate tax rate is 9.8% of what is left after they deduct expenses. Charities pay 18 to 72% of what is left after paying expenses* in state tax, depending on what bracket you are in and what your expenses are as a percent of your after prize money.
*Expenses are 52.3% for the average charity, some pay less, some pay more. Your numbers will vary. Knowing what your numbers are when speaking to your legislators is a great help. Not being able to deduct any expenses prior to calculating our state tax liability means that the average charity pays 42% of what they have left after expenses to the state in taxes annually.
I keep asking why people that help care for the sick and elderly, help our veterans, educate our youth, feed the poor, keep kids off the street, make our communities a better place to live, protect us and save lives are treated in such a manner. We do not feather our own nests, we help others. Any relief that we get will go to our chosen missions. You are good folks doing really good work.
Thanks much for doing what you do.