Allied Charities of Minnesota Members Too Often Are Working More To Pay For U.S. Bank Stadium Than To Invest In Their Own Communities And Missions
ST. PAUL, Minn., March 8, 2017 /PRNewswire/ -- Growing numbers of community-based charities are paying more in state taxes than they are able to contribute to their local missions, an inequity that won't be tolerated for long, according to testimony today to a Minnesota Senate committee.
Taxes on charitable gaming were increased substantially in 2012 to pay for U.S. Bank Stadium, a policy that now is causing many charities to examine their very existence, said Al Lund, executive director of Allied Charities of Minnesota today at a Minnesota Senate Tax Committee hearing on legislation addressing the problem.
"Community-based charities are getting fed up with an unfair tax system. They are being forced to invest hours and hours of volunteer work to pay for U.S. Bank Stadium while needs these charities could address in their own communities are going unmet. Without fair treatment of their charitable contributions, many charities simply will drop their charitable gaming operations. They exist to serve their missions, not to be tax collectors," said Lund.
The proposed Community Vitality Investment Act (HF 226 and SF 419/SF 1069) would eliminate state taxes on the charitable gaming contributions from qualified organizations operating charitable gaming. Under current law, charitable gaming organizations are the only entities in the state that provide goods and services and are not able to deduct donations from their taxable income.
The change would reduce taxes on charitable organizations by about $16 million; however, charitable gaming still would pay more than $40 million in taxes, based on last year's revenue, generating enough in taxes to deliver on the most important commitments Minnesota has made.
Lund told the committee that there are solutions to maintaining secure funding for the NFL stadium that still would rely on revenue from charitable gaming.
"We recognize the importance of the Vikings to Minnesota and we always have been at the table to pay our share. There are ways to address our funding issue and still meet the needs of both the stadium bonds and our communities, and we are eager to work with legislators to share our ideas. Getting to that win-win solution, though, begins by acknowledging that community charities are facing a crisis, one that has a fair and effective solution," Lund told the committee.
CONTACTS: |
Amanda Horner, |
Horner Strategies |
|
952-220-2553 |
SOURCE Allied Charities of Minnesota
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