In a meeting filled with discussions about community support and local funding, North Dakota's House Finance and Taxation Committee gathered on February 17, 2025, to consider House Bill 1465, a proposal aimed at reforming gaming tax regulations. Representative Dorey Hough, representing District 36, passionately advocated for the bill, emphasizing its potential to empower local charitable organizations.

As Hough shared anecdotes from his travels across Stark, Morton, and Dunn Counties, he painted a vivid picture of how charitable gaming has become a lifeline for many communities. From funding volunteer fire departments to providing scholarships for youth sports, the proceeds from local gaming activities have made a significant impact. Hough noted that these organizations are currently required to allocate 40% of their proceeds for charitable purposes, which has led to numerous community enhancements.

The proposed changes to the gaming tax structure are designed to allow smaller charities to retain more of their earnings. Currently, organizations with adjusted gross proceeds of less than $50,000 pay a 1% tax, while those exceeding that amount face a steeper 12% tax plus additional fees. Hough's bill seeks to raise the threshold for the lower tax rate to $150,000, creating new tiers that would significantly reduce the tax burden on smaller organizations.

For example, under the current system, a charity with $175,000 in proceeds pays approximately $21,500 in taxes. If the bill passes, that same organization would see its tax liability drop to around $1,500, allowing more funds to remain within the community. Hough argued that this change would enable local charities to compete more effectively with larger organizations, ultimately benefiting the communities they serve.

As the committee members listened intently, the implications of the proposed bill became clear: a shift in the gaming tax structure could lead to increased local funding for essential services and projects. The meeting underscored the importance of supporting grassroots initiatives that directly impact the lives of North Dakotans, leaving attendees with a sense of hope for the future of community-driven charitable efforts.