| Is the rental of electronic gaming devices taxable? |
Yes. The lessee is responsible for the sales tax on the rental or lease of the equipment. It does not matter if there is a revenue sharing agreement. |
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| Are monthly equipment charges taxable? |
Yes. The lessee is responsible for the sales tax on the rental or lease of the equipment. |
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| Are revenue sharing agreements taxable? |
Yes. The lessee is responsible for the sales tax on the total sales price of the rental or lease of an electronic gaming device – even when the sales price is separated into various components. |
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| Are bingo cards and pull-tabs taxable? |
Yes. The retailer is responsible for the sales tax unless an exemption applies – including purchases of digital products. |
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| Are electronic pull-tabs taxable? |
Yes. The retailer is responsible for the sales tax unless an exemption applies – including purchases of digital products. |
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| Are apps for electronic gaming devices taxable? |
Yes, they are taxable when sold to the distributor. |
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| Is the sale of the software taxable? |
Yes, they are taxable when sold to the distributor. |
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| Does local sales and use tax apply when the city also has a local gambling tax? |
No. However, Minnesota sales tax (6.875%) still applies. |
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| Are purchases of gambling equipment by a 501(c)3 organization with a gambling license taxable? |
Yes. These organizations must pay sales tax when they purchase, lease, or rent gambling devices and equipment.
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