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Published March 26, 2011, 01:07 PM

ND House approves smaller gambling tax cut

BISMARCK, N.D. (AP) — North Dakota's House has approved a tax cut for the state's charitable gambling industry, even though it's smaller that was first proposed.

BISMARCK, N.D. (AP) — North Dakota's House has approved a tax cut for the state's charitable gambling industry, even though it's smaller that was first proposed.

Representatives voted 65-22 on Friday to approve the tax reduction. The bill now returns to the Senate.

The bill imposes a 2 percent tax on wagers. It gets rid of an assortment of existing taxes and replaces them with the flat tax.

When the bill was introduced it had a 1 percent tax rate. Both bills increase the amount of money charities may keep for expenses.

Minot Rep. Dan Ruby opposes the tax cut. He says the state doesn't want to encourage more gambling.

But Fargo Rep. Bette Grande (BET'-ee GRAN'-dee) says the change will give charities more gambling profit to spend on charitable work.

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