Bill Text: IA HF673 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to certain tax receipts on internet fantasy sports contests and sports wagering, providing for tax credits, making appropriations, and including applicability, retroactive applicability, and effective date provisions.(Formerly HSB 122; See HF 710.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-04-13 - Withdrawn. H.J. 860. [HF673 Detail]
Download: Iowa-2023-HF673-Introduced.html
House
File
673
-
Introduced
HOUSE
FILE
673
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
122)
A
BILL
FOR
An
Act
relating
to
certain
tax
receipts
on
internet
fantasy
1
sports
contests
and
sports
wagering,
providing
for
tax
2
credits,
making
appropriations,
and
including
applicability,
3
retroactive
applicability,
and
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
SPORTS
WAGERING
RECEIPTS
2
Section
1.
Section
8.57,
subsection
6,
Code
2023,
is
amended
3
by
adding
the
following
new
paragraphs:
4
NEW
PARAGRAPH
.
f.
For
the
fiscal
year
beginning
July
1,
5
2023,
any
unobligated
and
unencumbered
moneys
in
the
sports
6
wagering
receipts
fund
from
the
previous
fiscal
year
are
7
appropriated
to
the
county
endowment
fund
created
in
section
8
15E.311.
9
NEW
PARAGRAPH
.
g.
This
subsection
is
repealed
June
30,
10
2024.
11
Sec.
2.
Section
15E.311,
subsection
3,
paragraph
a,
Code
12
2023,
is
amended
to
read
as
follows:
13
a.
At
the
end
of
each
fiscal
year,
moneys
in
the
fund
14
shall
be
transferred
into
separate
accounts
within
the
fund
15
and
designated
for
use
by
each
county
in
which
no
licensee
16
authorized
to
conduct
gambling
games
under
chapter
99F
was
17
located
during
that
fiscal
year.
Moneys
transferred
to
18
county
accounts
shall
be
divided
equally
among
the
counties.
19
Moneys
transferred
into
an
account
for
a
county
shall
be
20
transferred
by
the
department
to
an
eligible
county
recipient
21
for
that
county.
Of
the
moneys
transferred,
an
eligible
county
22
recipient
shall
distribute
seventy-five
percent
of
the
moneys
23
as
grants
to
charitable
organizations
for
charitable
purposes
24
in
that
county
and
shall
retain
twenty-five
percent
of
the
25
moneys
for
use
in
establishing
a
permanent
endowment
fund
26
for
the
benefit
of
charitable
organizations
for
charitable
27
purposes.
In
addition,
of
the
moneys
transferred
from
moneys
28
appropriated
to
the
fund
from
the
sports
wagering
receipts
29
fund
created
in
section
8.57,
subsection
6
,
and
distributed,
30
eligible
county
recipients
shall
give
consideration
for
grants,
31
upon
application,
to
a
charitable
organization
that
operates
32
a
racetrack
facility
that
conducts
automobile
races
in
that
33
county.
Of
the
amounts
distributed,
eligible
county
recipients
34
shall
give
special
consideration
to
grants
for
projects
that
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include
significant
vertical
infrastructure
components
designed
1
to
enhance
quality
of
life
aspects
within
local
communities.
2
In
addition,
as
a
condition
of
receiving
a
grant,
the
governing
3
body
of
a
charitable
organization
receiving
a
grant
shall
4
approve
all
expenditures
of
grant
moneys
and
shall
allow
a
5
state
audit
of
expenditures
of
all
grant
moneys.
6
Sec.
3.
Section
99E.6,
subsection
2,
Code
2023,
is
amended
7
to
read
as
follows:
8
2.
The
taxes
imposed
by
this
section
for
internet
fantasy
9
sports
contests
authorized
under
this
chapter
shall
be
paid
by
10
the
internet
fantasy
sports
contest
service
provider
to
the
11
treasurer
of
state
as
determined
by
the
commission
and
shall
be
12
credited
as
provided
in
section
8.57,
subsection
6
deposited
in
13
the
county
endowment
fund
created
in
section
15E.311
.
14
Sec.
4.
Section
99F.11,
subsection
5,
paragraph
b,
Code
15
2023,
is
amended
to
read
as
follows:
16
b.
The
taxes
imposed
by
this
subsection
for
sports
wagering
17
authorized
under
this
chapter
shall
be
paid
by
the
licensed
18
operator
to
the
treasurer
of
state
as
determined
by
the
19
commission
and
shall
be
credited
as
provided
in
section
8.57,
20
subsection
6
distributed
as
follows:
21
(1)
One
million
seven
hundred
fifty
thousand
dollars
of
22
taxes
paid
is
appropriated
each
fiscal
year
to
the
department
23
of
health
and
human
services
for
purposes
of
the
gambling
24
treatment
program
established
in
section
135.150
.
25
(2)
One
million
dollars
shall
be
deposited
in
the
general
26
fund
of
the
state
for
purposes
of
section
15E.305.
27
(3)
Eighty-five
percent
of
the
remaining
amount
of
taxes
28
paid
after
the
distributions
made
in
subparagraphs
(1)
and
(2)
29
shall
be
deposited
in
the
county
endowment
fund
created
in
30
section
15E.311.
31
(4)
The
remaining
amount
of
taxes
paid
after
the
32
distributions
made
in
this
paragraph
shall
be
appropriated
to
33
the
economic
development
authority
for
distribution
to
each
34
qualified
sponsoring
organization
licensed
to
operate
gambling
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games
under
this
chapter
on
an
equal
basis.
1
DIVISION
II
2
SPORTS
WAGERING
RECEIPTS
FUND
APPROPRIATION
3
Sec.
5.
SPORTS
WAGERING
RECEIPTS
FUND.
There
is
4
appropriated
from
the
sports
wagering
receipts
fund
created
in
5
section
8.57,
subsection
6,
to
the
general
fund
of
the
state
6
for
the
fiscal
year
beginning
July
1,
2022,
and
ending
June
30,
7
2023,
the
following
amount
to
be
used
for
purposes
of
section
8
15E.305:
9
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
7,000,000
10
Sec.
6.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
11
deemed
of
immediate
importance,
takes
effect
upon
enactment.
12
DIVISION
III
13
ENDOW
IOWA
TAX
CREDIT
——
TAX
YEAR
2023
14
Sec.
7.
ENDOW
IOWA
TAX
CREDIT
——
TAX
YEAR
2023.
15
Notwithstanding
any
provision
of
section
15E.305
to
the
16
contrary,
the
aggregate
amount
of
tax
credits
authorized
17
pursuant
to
section
15E.305
shall
not
exceed
a
total
of
18
thirteen
million
dollars
for
the
tax
year
beginning
on
or
after
19
January
1,
2023,
but
before
January
1,
2024.
20
Sec.
8.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
21
deemed
of
immediate
importance,
takes
effect
upon
enactment.
22
Sec.
9.
RETROACTIVE
APPLICABILITY.
This
division
of
this
23
Act
applies
retroactively
to
January
1,
2023,
and
applies
to
24
the
tax
year
beginning
on
or
after
January
1,
2023,
but
before
25
January
1,
2024.
26
DIVISION
IV
27
ENDOW
IOWA
TAX
CREDIT
——
TAX
YEARS
BEGINNING
ON
OR
AFTER
TAX
28
YEAR
2024
29
Sec.
10.
Section
15E.305,
subsection
2,
unnumbered
30
paragraph
1,
Code
2023,
is
amended
to
read
as
follows:
31
The
aggregate
amount
of
tax
credits
authorized
pursuant
to
32
this
section
shall
not
exceed
a
total
of
six
seven
million
33
dollars
annually.
34
Sec.
11.
APPLICABILITY.
This
division
of
this
Act
applies
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to
tax
years
beginning
on
or
after
January
1,
2024.
1
DIVISION
V
2
ENDOW
IOWA
TAX
CREDIT
——
GIFTS
MADE
PRIOR
TO
2023
3
Sec.
12.
2022
Iowa
Acts,
chapter
1002,
is
amended
by
adding
4
the
following
new
section:
5
NEW
SECTION
.
SEC.
54A.
APPLICABILITY.
The
following
6
applies
to
endowment
gifts
made
to
an
endow
Iowa
qualified
7
community
foundation
on
or
after
January
1,
2023:
8
The
section
of
this
division
of
this
Act
amending
section
9
15E.305,
subsection
2,
paragraph
“a”.
10
Sec.
13.
2022
Iowa
Acts,
chapter
1002,
section
55,
is
11
amended
to
read
as
follows:
12
SEC.
55.
APPLICABILITY.
This
Except
as
otherwise
provided
13
by
this
division
of
this
Act,
this
division
of
this
Act
applies
14
to
tax
years
beginning
on
or
after
January
1,
2023.
15
Sec.
14.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
16
deemed
of
immediate
importance,
takes
effect
upon
enactment.
17
Sec.
15.
RETROACTIVE
APPLICABILITY.
This
division
of
this
18
Act
applies
retroactively
to
January
1,
2023.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
concerns
the
distribution
of
tax
receipts
from
23
internet
fantasy
sports
contests
and
sports
wagering.
The
bill
24
is
organized
by
divisions.
25
Division
I
of
the
bill
provides
that
taxes
imposed
and
26
collected
for
internet
fantasy
sports
contests
shall
be
27
deposited
in
the
county
endowment
fund
created
in
Code
section
28
15E.311
and
not
the
sports
wagering
receipts
fund.
The
bill
29
also
provides
that
taxes
imposed
and
collected
for
sports
30
wagering
shall
not
be
deposited
in
the
sports
wagering
receipts
31
fund.
Instead,
the
bill
provides
that
the
first
$1.75
million
32
of
taxes
paid
on
sports
wagering
shall
be
appropriated
to
33
the
department
of
health
and
human
services
for
purposes
of
34
the
gambling
treatment
program,
the
next
$1
million
shall
be
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deposited
in
the
general
fund
for
purposes
of
the
endow
Iowa
1
tax
credit,
85
percent
of
the
remaining
amount
of
taxes
paid
2
shall
be
deposited
in
the
county
endowment
fund
created
in
3
Code
section
15E.311,
and
the
remaining
amount
of
taxes
paid
4
after
all
other
distributions
are
made
shall
be
appropriated
5
to
the
economic
development
authority
for
equal
distribution
6
to
qualified
sponsoring
organizations
licensed
to
operate
7
gambling
games
under
Code
chapter
99F.
The
bill
provides
that
8
for
the
fiscal
year
beginning
July
1,
2023,
any
unobligated
and
9
unencumbered
moneys
in
the
sports
wagering
receipts
fund
from
10
the
previous
fiscal
year
shall
be
appropriated
to
the
county
11
endowment
fund.
The
bill
strikes
a
reference
to
the
sports
12
wagering
receipts
fund
in
Code
section
15E.311
and
provides
13
that
the
sports
wagering
receipts
fund
is
repealed
June
30,
14
2024.
15
Division
II
of
the
bill
appropriates
$7
million
from
the
16
sports
wagering
receipts
fund
to
the
general
fund
for
the
17
fiscal
year
beginning
July
1,
2022,
for
purposes
of
the
endow
18
Iowa
tax
credit.
The
division
takes
effect
upon
enactment.
19
Division
III
of
the
bill
relates
to
the
maximum
amount
of
20
tax
credits
authorized
for
the
endow
Iowa
tax
credit
for
the
21
tax
year
beginning
on
or
after
January
1,
2023,
but
before
22
January
1,
2024.
The
bill
increases
the
maximum
amount
of
tax
23
credits
authorized
for
tax
year
2023
from
$6
million
to
$13
24
million.
The
division
takes
effect
upon
enactment
and
applies
25
retroactively
to
the
tax
year
beginning
on
or
after
January
1,
26
2023,
but
before
January
1,
2024.
27
Division
IV
of
the
bill
relates
to
the
maximum
amount
of
tax
28
credits
authorized
for
the
endow
Iowa
tax
credit
for
tax
years
29
beginning
on
or
after
January
1,
2024.
The
bill
increases
30
the
maximum
amount
of
tax
credits
authorized
for
tax
years
31
beginning
on
or
after
January
1,
2024,
to
$7
million.
The
32
division
applies
to
tax
years
beginning
on
or
after
January
1,
33
2024.
34
Division
V
of
the
bill
provides
that
the
changes
made
in
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2022
Iowa
Acts,
chapter
1002,
to
the
maximum
amount
of
tax
1
credits
authorized
for
the
endow
Iowa
tax
credit
do
not
apply
2
to
endowment
gifts
made
to
an
endow
Iowa
qualified
foundation
3
prior
to
January
1,
2023.
The
division
takes
effect
upon
4
enactment
and
applies
retroactively
to
January
1,
2023.
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