ST. PAUL, Minn. (AP) - Tax revenues from charitable gambling are generating so much revenue for paying off the debt for U.S. Bank Stadium that Minnesota officials say corporate taxes are no longer needed for that purpose.
The state projects that the stadium’s reserve account will hit $193 million by 2012, so officials plan to drop an annual infusion of $20 million from corporate income taxes to fill the account. And the Star Tribune reported Wednesday that the rising revenue could even pay off the stadium debt earlier than anticipated, saving hundreds of millions in interest costs.
Pulltabs dominate charitable gambling sales, and electronic pulltabs approved under the stadium financing law now comprise nearly 20 percent of all pulltab sales. Other taxable charitable gambling includes bingo and raffles.
Gambling tax revenues were growing so slowly that in 2013 that state leaders looked elsewhere for cash for the stadium fund. They approved a one-time tax on cigarettes and closed a corporate tax loophole involving overseas income, which raised an extra $20 million annually that can now be redirected into to the state’s general fund.
“We’re just recognizing that the original projections are now coming through,” said Myron Frans, Minnesota Management and Budget commissioner.
Frans recommends that future state leaders leave the account alone for now. If it reaches the projected level in five years, he said, the state can prepay enough stadium debt to save about $300 million in interest payments.
But charities that rely on gambling proceeds say lawmakers should reduce their taxes so they have more money left for their missions, such as supporting youth sports leagues and fire departments.
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Information from: Star Tribune, http://www.startribune.com
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