Revenue Notice #04-10: Sales and Use Tax - Exemption for Fund-Raising Events - Lawful Gambling Activities

Minnesota Statutes, section 297A.70, subdivision14 provides an exemption from the Minnesota sales tax for sales or admission charges related to fund-raising events sponsored by nonprofit groups. The statute provides that the exemption is limited in that all gross receipts are taxable if fund-raising events exceed 24 days per year. The department’s position is that lawful gambling activities conducted by a nonprofit group are fund-raising activities and will be counted toward the 24-day limitation period.

JOHN H. MANSUN, Assistant Commissioner

for Tax Policy and External Relations

Publication Date: December 27, 2004