Tax cut for pull tabs in ND HouseBISMARCK (AP) — Pull tab gambling tickets have won a tax break in the North Dakota House.
BISMARCK (AP) — Pull tab gambling tickets have won a tax break in the North Dakota House.
The state levies a 4.5 percent tax on the sale of pull tabs. Pull tab buyers open the tickets to see if they win a money prize.
The House voted 85-8 on Wednesday to cut the tax rate to 3 percent. The bill now goes to the North Dakota Senate.
Minot Rep. Louis Pinkerton says the tax reduction is needed for charitable gambling operations to stay in business.
The attorney general’s office estimates the tax cut will mean almost $3.7 million less in state general fund tax collections over two years. Gambling enforcement grants for law enforcement agencies would decline by $107,000.
The bill introduced by Venturia Rep. Bill Kretschmar originally sought to abolish the pull tab tax and a 3 percent state sales tax on bingo cards. But bill was changed to scale back the pull tab tax cut and keep the tax on bingo cards.