Bill Text: IA HSB110 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for excluding certain wagers from the definition of adjusted gross receipts for purposes of the wagering tax on gambling games, providing for a wagering tax credit, and including effective date provisions.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-04-08 - Voted - Ways and Means. [HSB110 Detail]
Download: Iowa-2015-HSB110-Introduced.html
House
Study
Bill
110
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
excluding
certain
wagers
from
the
definition
of
adjusted
1
gross
receipts
for
purposes
of
the
wagering
tax
on
gambling
2
games,
providing
for
a
wagering
tax
credit,
and
including
3
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
99F.1,
Code
2015,
is
amended
by
adding
1
the
following
new
subsections:
2
NEW
SUBSECTION
.
19A.
“Promotional
play”
means
wagers
3
conducted
with
tokens,
chips,
electronic
credits,
or
other
4
forms
of
cashless
wagering
provided
by
the
licensee
without
an
5
exchange
of
money
as
described
in
section
99F.9,
subsection
3.
6
NEW
SUBSECTION
.
22.
“Taxable
gross
receipts”
means
the
7
adjusted
gross
receipts
less
the
total
sums
wagered
through
8
promotional
play.
9
Sec.
2.
Section
99F.4A,
subsection
6,
Code
2015,
is
amended
10
to
read
as
follows:
11
6.
The
adjusted
taxable
gross
receipts
received
from
12
gambling
games
shall
be
taxed
at
the
same
rates
and
the
13
proceeds
distributed
in
the
same
manner
as
provided
in
section
14
99F.11
.
15
Sec.
3.
Section
99F.11,
subsection
1,
Code
2015,
is
amended
16
to
read
as
follows:
17
1.
A
tax
is
imposed
on
the
adjusted
taxable
gross
receipts
18
received
each
fiscal
year
from
gambling
games
authorized
under
19
this
chapter
at
the
rate
of
five
percent
on
the
first
one
20
million
dollars
of
adjusted
taxable
gross
receipts
and
at
the
21
rate
of
ten
percent
on
the
next
two
million
dollars
of
adjusted
22
taxable
gross
receipts.
23
Sec.
4.
Section
99F.11,
subsection
2,
unnumbered
paragraph
24
1,
Code
2015,
is
amended
to
read
as
follows:
25
The
tax
rate
imposed
each
fiscal
year
on
any
amount
of
26
adjusted
taxable
gross
receipts
over
three
million
dollars
27
shall
be
as
follows:
28
Sec.
5.
Section
99F.11,
subsection
2,
paragraph
b,
29
subparagraph
(2),
Code
2015,
is
amended
to
read
as
follows:
30
(2)
If
the
licensee
of
the
racetrack
enclosure
has
been
31
issued
a
table
games
license
during
the
fiscal
year
or
prior
32
fiscal
year
and
the
adjusted
gross
receipts
from
gambling
games
33
of
the
licensee
in
the
prior
fiscal
year
were
one
hundred
34
million
dollars
or
more,
twenty-two
percent
on
adjusted
taxable
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gross
receipts
received
prior
to
the
operational
date
and
1
twenty-four
percent
on
adjusted
taxable
gross
receipts
received
2
on
or
after
the
operational
date.
For
purposes
of
this
3
subparagraph,
the
operational
date
is
the
date
the
commission
4
determines
table
games
became
operational
at
the
racetrack
5
enclosure.
6
Sec.
6.
Section
99F.11,
subsection
3,
paragraphs
a,
b,
and
7
c,
Code
2015,
are
amended
to
read
as
follows:
8
a.
If
the
gambling
excursion
originated
at
a
dock
located
9
in
a
city,
one-half
of
one
percent
of
the
adjusted
taxable
10
gross
receipts
shall
be
remitted
to
the
treasurer
of
the
city
11
in
which
the
dock
is
located
and
shall
be
deposited
in
the
12
general
fund
of
the
city.
Another
one-half
of
one
percent
of
13
the
adjusted
taxable
gross
receipts
shall
be
remitted
to
the
14
treasurer
of
the
county
in
which
the
dock
is
located
and
shall
15
be
deposited
in
the
general
fund
of
the
county.
16
b.
If
the
gambling
excursion
originated
at
a
dock
located
17
in
a
part
of
the
county
outside
a
city,
one-half
of
one
percent
18
of
the
adjusted
taxable
gross
receipts
shall
be
remitted
to
19
the
treasurer
of
the
county
in
which
the
dock
is
located
and
20
shall
be
deposited
in
the
general
fund
of
the
county.
Another
21
one-half
of
one
percent
of
the
adjusted
taxable
gross
receipts
22
shall
be
remitted
to
the
treasurer
of
the
Iowa
city
nearest
to
23
where
the
dock
is
located
and
shall
be
deposited
in
the
general
24
fund
of
the
city.
25
c.
Eight-tenths
of
one
percent
of
the
adjusted
taxable
gross
26
receipts
tax
shall
be
deposited
in
the
county
endowment
fund
27
created
in
section
15E.311
.
28
Sec.
7.
Section
99F.11,
subsection
3,
paragraph
d,
29
unnumbered
paragraph
1,
Code
2015,
is
amended
to
read
as
30
follows:
31
Two-tenths
of
one
percent
of
the
adjusted
taxable
gross
32
receipts
tax
shall
be
allocated
each
fiscal
year
as
follows:
33
Sec.
8.
Section
99F.11,
subsection
3,
paragraph
e,
Code
34
2015,
is
amended
to
read
as
follows:
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e.
The
remaining
amount
of
the
adjusted
taxable
gross
1
receipts
tax
shall
be
credited
as
provided
in
section
8.57,
2
subsection
5
.
3
Sec.
9.
GAMBLING
GAMES
WAGERING
TAX
CREDIT
——
PROMOTIONAL
4
PLAY.
5
1.
For
the
fiscal
years
beginning
July
1,
2015,
and
July
1,
6
2016,
each
licensee
subject
to
the
wagering
tax
as
provided
in
7
section
99F.11
shall
report
to
the
racing
and
gaming
commission
8
by
the
end
of
each
fiscal
year
an
amount
representing
the
total
9
sums
wagered
through
promotional
play,
as
defined
in
section
10
99F.1,
as
amended
by
this
Act,
for
that
fiscal
year
at
the
11
licensed
premises
of
the
licensee
multiplied
by
the
tax
rate
12
applicable
to
the
licensee
as
determined
in
section
99F.11,
13
subsection
2,
Code
2015.
The
racing
and
gaming
commission
14
shall
aggregate
the
amounts
reported
for
each
fiscal
year
15
and
determine
for
each
licensee
the
proportion,
stated
as
a
16
percentage,
that
the
amount
reported
by
that
licensee
for
that
17
fiscal
year
bears
to
the
total
amount
reported
by
all
licenses
18
for
that
fiscal
year.
19
2.
For
the
fiscal
year
beginning
July
1,
2016,
each
licensee
20
subject
to
the
wagering
tax
as
provided
in
section
99F.11,
Code
21
2015,
shall
receive
a
wagering
tax
credit,
as
determined
by
22
the
racing
and
gaming
commission
pursuant
to
the
requirements
23
of
this
subsection,
on
the
wagering
taxes
imposed
on
that
24
licensee
as
calculated
pursuant
to
section
99F.11,
Code
2015.
25
The
wagering
tax
credit
for
each
licensee
shall
be
an
amount
26
equal
to
the
percentage
for
each
licensee,
as
calculated
by
27
the
racing
and
gaming
commission
pursuant
to
subsection
1
for
28
the
fiscal
year
beginning
July
1,
2015,
multiplied
by
the
tax
29
credit
amount,
if
positive.
For
purposes
of
this
subsection,
30
“tax
credit
amount”
means
an
amount
equal
to
the
total
31
aggregate
amount
determined
by
the
racing
and
gaming
commission
32
under
subsection
1
for
the
fiscal
year
beginning
July
1,
2015,
33
reduced
by
twenty-three
million
three
hundred
twenty
thousand
34
dollars.
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3.
For
the
fiscal
year
beginning
July
1,
2017,
each
licensee
1
subject
to
the
wagering
tax
as
provided
in
section
99F.11,
as
2
amended
by
this
Act,
shall
receive
a
wagering
tax
credit,
as
3
determined
by
the
racing
and
gaming
commission
pursuant
to
the
4
requirements
of
this
subsection,
on
the
wagering
taxes
imposed
5
on
that
licensee
as
calculated
pursuant
to
section
99F.11,
6
as
amended
by
this
Act.
The
wagering
tax
credit
for
each
7
licensee
shall
be
an
amount
equal
to
the
percentage
for
each
8
licensee,
as
calculated
by
the
racing
and
gaming
commission
9
pursuant
to
subsection
1
for
the
fiscal
year
beginning
July
10
1,
2016,
multiplied
by
the
tax
credit
amount,
if
positive.
11
For
purposes
of
this
subsection,
“tax
credit
amount”
means
an
12
amount
equal
to
the
total
aggregate
amount
determined
by
the
13
racing
and
gaming
commission
under
subsection
1
for
the
fiscal
14
year
beginning
July
1,
2016,
reduced
by
the
minimum
tax
amount.
15
For
purposes
of
this
subsection,
“minimum
tax
amount”
means
the
16
greater
of
eleven
million
six
hundred
sixty
thousand
dollars
or
17
an
amount
equal
to
twenty-three
million
three
hundred
twenty
18
thousand
dollars
reduced
by
the
difference,
if
positive,
19
between
the
total
adjusted
gross
receipts
tax
for
all
licensees
20
for
the
fiscal
year
beginning
July
1,
2016,
and
the
total
21
adjusted
gross
receipts
tax
for
all
licensees
for
the
fiscal
22
year
beginning
July
1,
2014.
23
Sec.
10.
EFFECTIVE
DATE.
The
following
provision
or
24
provisions
of
this
Act
take
effect
July
1,
2017:
25
1.
The
section
of
this
Act
amending
section
99F.4A.
26
2.
The
sections
of
this
Act
amending
section
99F.11.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
concerns
the
method
of
calculating
the
wagering
31
tax
on
gambling
game
receipts
as
provided
in
Code
section
32
99F.11.
33
Code
section
99F.1
is
amended
by
adding
two
new
definitions.
34
“Promotional
play”
is
defined
as
wagers
conducted
with
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tokens,
chips,
electronic
credits,
or
other
forms
of
cashless
1
wagering
provided
by
the
licensee
without
an
exchange
of
money.
2
“Taxable
gross
receipts”
is
defined
as
adjusted
gross
receipts
3
less
the
total
sums
wagered
through
promotional
play.
4
Code
section
99F.11,
providing
for
the
wagering
tax,
is
5
amended
to
provide
that
the
wagering
tax
is
calculated
on
the
6
taxable
gross
receipts
of
a
gambling
game
licensee
instead
7
of
the
adjusted
gross
receipts.
The
bill
provides
that
this
8
change
takes
effect
July
1,
2017.
9
The
bill
also
provides
a
gambling
games
wagering
tax
credit
10
for
licensees
for
the
fiscal
years
beginning
July
1,
2016,
11
and
July
1,
2017.
The
bill
directs
the
racing
and
gaming
12
commission
to
determine,
for
the
fiscal
years
beginning
July
1,
13
2015,
and
July
1,
2016,
the
total
sums
wagered
each
fiscal
year
14
through
promotional
play,
as
defined
by
the
bill,
for
purposes
15
of
calculating
the
wagering
tax
credit.
For
the
fiscal
year
16
beginning
July
1,
2016,
each
gambling
games
licensee
receives
a
17
wagering
tax
credit
for
its
pro
rata
share
of
the
amount
that
18
wagering
taxes
on
promotional
play
exceeded
$23.32
million
for
19
the
fiscal
year
beginning
July
1,
2015.
For
the
fiscal
year
20
beginning
July
1,
2017,
each
gambling
games
licensee
receives
21
a
wagering
tax
credit
for
its
pro
rata
share
of
the
amount
22
that
wagering
taxes
on
promotional
play
exceed
the
greater
23
of
$23.32
million
less
the
difference
between
the
amount
of
24
adjusted
gross
receipts
taxes
the
state
collects
in
the
fiscal
25
year
beginning
July
1,
2016,
relative
to
the
amount
the
state
26
collected
in
the
fiscal
year
beginning
July
1,
2014;
or
$11.66
27
million.
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